Growth Not Income
By Ernie Varitimos
May 6, 2022
0:00 / 18:07
Growth Not Income

All right.

Are you doing friends Ernie here? And this is an afternoon session zoom session. I plan on doing these on a regular basis. What I want to do is do a morning analysis and do that. Maybe three times a week. I don't necessarily want to do it every single Xero DTE day. I know we're going to five days a week, but I think then everything will, we'll see how it works.

I just don't want to overload people with stuff and maybe even get too repetitive. But what I wanted to talk about today is the perfect. The overall a higher level, purpose, or goal of this type of trading this strategy. And this goes for anything, when we're talking about this sort of asymmetry or, an asymmetric trading strategy where you're taking very small risks for larger profits.

And the reason why I'm bringing this up is that somebody had asked about putting on another trade or another trade and, or bookending the trades or doing anything that we can to try to capture some of the profit today. And that is more or less antithetical to what we're trying to achieve here.

We are not trying to achieve an income. Now, maybe that's what you're expecting and maybe you're in the wrong place. But first of all, I don't think that it's possible to achieve an income with trading the markets. You can achieve an income maybe with some kind of derivative or an annuity or a bond or something like that.

Certainly where you don't have to really worry about. Ups and downs of the market and so forth. And it produces regular guaranteed income. That is not something that we are doing here by any means, not even close. And so to try to attempt to make. Every single time that you're out. And if you miss it or you miss the opportunity, try to go jump back into it and see where else that you can get it here, where we're trying to Institute a growth strategy.

And with that growth strategy, we're putting on asymmetric bets and it's defined risk. We take our chance there and we let it ride.

With that you have a positive long-term outcome and you're going to achieve really good things. Now it's true that we do two separate trades now, and maybe someday it will all merge into one. Maybe we'll find that the optimal time to trade is not at 10 in the morning. And. Three 30 in the afternoon.

Maybe the optimal time to trade is two 30 in the afternoon. I don't know that yet. And we'll find that out over time, but it looks like trading later in the day makes more sense because we have a greater edge and that may in fact, give us a higher probability of trades. And I don't think that it's going to sacrifice.

Our potential profit. As a matter of fact, there is, as far as I can tell, there is there's no sacrifice on the potential profit at all by trading late in the day, which just totally blows me away. But what has been happening is that as we get further into the day, because the expected move starts shrinking.