Don’t blame yourself… You see the majority of the time, the stock market barely moves!
I mean seriously, take a look at this eye opening graph...
What you’re looking at is the S&P percentage movement every day from the past 10 years plotted on a chart.
What you see outside of those two black lines are the days where S&P 500 moves 1% or more...
But what you’re looking at between those two lines is the number of days where the markets move less than 1%... about 70% of the time (but a time where you and I can make out like a bandit… thanks to this one phenomenon)
As you can see, all the weight of the graph is right there in the middle…
That means 70% of the time… The markets are stagnant.
And options are just eating time decay, and you’re paying for it!
It’s no surprise that the Chicago Mercantile Exchange reported that 76.5% of options expire worthless.
To make trading harder… These rare, large moves in the markets…
When they do happen… I’ve seen traders watch their accounts get wiped out time and time again.
And it’s this kind of frustrating, whipsawing action that can just demoralize a trader.
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