Behind The Name

While learning your ABC’s sounds easy, the reality is that learning the American alphabet consists of the memorization of 26 different characters in specific order. Furthermore, each character has specific properties that need to be memorized. These properties not only change depending on the grouping of the characters, but to add to the complexity, sometimes even the most obvious rules are broken. In short, learning your ABC’s is not easy. It is one of those really difficult things that takes us months to learn as children, and the older we start, the closer to impossible it becomes to master.

We find this analogous to learning to trade options. There are a lot of pieces that need to be learned. Most people do not take the time to learn the proper mechanics associated with options. They are lured by deceptive infomercials claiming that you can become an overnight millionaire trading, that learning options is easy, and that it takes very little time to master. The reality is that learning to trade options is hard work. Things get even harder if you are never taught a solid foundation.

Many students of trading are in such a rush to “do things”, especially what they consider “advanced” concepts,  that they skip over the fundamental building blocks. In essence, they want to learn to write before they learn to read. Sadly, this is precisely what students are promised and they don’t realize their mistake until tens of thousands of dollars and one or two expensive software products later.