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Researching Your Stocks

Researching Your Stocks is STUPID!

In this article, you're going to learn why you should not spend time researching and reading about the stocks that you own.

David Jaffee with BestStockStrategy.com used to read SeekingAlpha.com. He felt that it was almost as if it was beaten into him that he had to dedicate the time to read and research. He thought that as long as he did that, he would be rewarded with making more money.

We're taught from an early age that if you study in school then you'll do better. The problem is that oftentimes the information that we're consuming is garbage. 

In David Jaffee’s opinion, bad information is worse than no information. 

From David Jaffee’s personal options trading experience, he performed significantly worse when he read articles, did research, and watched CNBC than he does right now by consuming no information.

When many people consume information, they're looking for confirmation bias. This means they're going to look for information that confirms their existing belief.

The goal of many articles and videos is to elicit an emotional response. However, oftentimes, emotional responses are not rational.

You may believe that if you study more and if you invest the time, then you're entitled to make more money. 

However, with the stock market, it doesn't work like that. The more you study and the more time you invest in the stock market, the more confused you’ll likely become and the more conflicting opinions you’ll likely consume – oftentimes causing you to make bad decisions that cost you money. 

Sometimes, the time you spend studying, researching your stocks, and studying fundamental analysis can actually be counterproductive. 

How do you make money in the stock market?

To make money in the stock market you need to consistently make good decisions.

When trading options, the most important aspects are knowing when to trade, when not to trade, and the sizing of the positions that you take.

David Jaffee teaches his students to trade large cap stocks, which are market leaders and that often have very strong brands. As a result, almost all the information that you read is already priced into the market price of the stock . 

There is nothing that you're going to read about Amazon that is going to help you make money in this stock. Instead, you're simply wasting your time by reading articles on SeekingAlpha.com about Amazon.

Protect Yourself from Bad Options Trading Information 

David Jaffee has also found that more information is oftentimes a distraction.

There is a lot of bad information out there, and bad information is worse than no information. There is no guarantee that you're consuming good information. 

David Jaffee knows from personal experience that traders tend to perform worse when investing time and reading articles about the underlying stocks on their watch list.

Instead, if you want to be a consistently profitable options trader, the best thing that you can do is to improve your discipline, learn how to observe price action and the recent trading ranges of the stocks on your watch list, learn when to trade and when not to trade, and also learn how to correctly size your positions.

Once you educate yourself on these important trading lessons, you should significantly improve your overall consistency while also reducing your portfolio volatility. 

By learning how to sell option premium, you can win up to 98% of your trades. 

David Jaffee understands that ignoring fundamental analysis and research is a bit of a controversial opinion and goes against everything we’ve been taught about preparation, sacrifice, studying, and knowledge. 

While educating yourself and researching the stocks on your watchlist may not seem counterproductive, David Jaffee performed worse when he researched and read articles about the stocks on his watch list. 

Improve Your Options Trading Consistency

David Jaffee of BestStockStrategy.com offers an online options trading course that teaches traders how to sell options while limiting their risk. 

Through his course, you can learn when to trade and when not to trade. You can also learn how to improve your discipline and correctly size your positions. 

Visit BestStockStrategy.com for $400 of valuable free options trading information.

About the Author David Jaffee

I (David Jaffee) help people become consistently profitable traders while minimizing risk. I graduated from an Ivy League University and worked at some of Wall Street's most successful investment banks. Subscribe to my YouTube channel for valuable videos - BestStockStrategy YouTube Channel​. Finally, if you're looking to Land a Finance Job, then I've put together the best step-by-step course at LandaFinanceJob.com. My personal website is DavidJaffee.com.

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