The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone, this is Kirk here again at Option Alpha and welcome back to the daily call. Today’s call, we are going to be talking about false positives and false negatives and why they cripple, literally cripple options trader’s ability to stay consistent. This one is a favorite topic of mine. Literally, I’m actually just really excited. I’ve sat up in my chair. I’m so much more alert talking about this topic because I love talking about this. I think that this is a huge problem in the investing world. I myself fall prey to it too, so it’s not like that it’s… I'm not superhuman and I don't have your false and negatives or downsides to how I trade, but I recognize that this is a huge problem with people and it’s this false positive, false negative that you get in trading. Here's how it works. When you make a trade and even if it's a completely bad, stupid, dumb trade, you could still make money on that trade. There’s probably a pretty good change maybe even that you make money on that trade because something