Is stock options trading the perfect lifestyle business?
I think we would all agree that the goal of making more money is so that we can build our dream lives. One of the best ways to do this is by investing your money wisely.
My good friend, Ryan Coisson, would attest to this. He is a successful serial entrepreneur, investor, and trader who teaches people how to create future-proof businesses.
If you want core principles and strategies for building a lifestyle business that gives you financial freedom, listen to Ryan!
Watch the video below:
(Click here to watch on YouTube)
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Want to discover the PERFECT lifestyle business that can allow you to create financial freedom? CLICK HERE to join Ryan and me in the upcoming “PB Code” training!
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Ryan has mastered the perfect lifestyle business.
He has built multiple 7-figure online businesses that only take him a few hours per week to operate. He truly lives the laptop lifestyle, travels the world, and spends a lot of his time in nature. To many people, this way of life may feel like just a dream.
However, his story is proof that anything is possible. In our interview, Ryan breaks down what the perfect lifestyle business involves and talks about how stock options trading can allow you to create your dream life. Let's dive in!
Do you mind sharing with people what you believe to be the perfect lifestyle business?
I've been at this for a long time. I started in the business world when I was 18 years old. This was pre-SnapChat, pre-Facebook, pre-YouTube. The world was a lot different. Honestly, it was a lot more challenging to build a successful business back then. We didn't have as many opportunities available to us. Today, there are so many things that you can do and be.
In the early 2000s, being an influencer didn't even exist. When I got my start I was very introverted. I'm still quite the introvert. I prefer to be out in nature and do my own thing, versus being in the crowds. People were talking about writing a book, becoming a speaker, buying investment properties, building an online business.
All of it sounded incredibly daunting to me.
It felt like you needed to be a technological genius. Honestly, I didn't even know at the time how to type on a regular computer. I had to take a typing class in my senior year of high school so that I could learn how to do that. My ears started to perk up when I heard about the stock market.
At the time, I knew nothing about how it worked. All I knew is what I had seen in movies, like Trading Places with Eddie Murphy and Dan Ackroyd. As a young kid, I went to a private Lutheran school. We did a field trip to the Chicago Board of Exchange. Those were my real exposures to the stock market.
The foreign land of the stock market was intriguing to me, but I also knew that it could be challenging because I wasn't very knowledgeable in finance. I started to hear people talk about this tiny corner of the stock market related to stock options.
Immediately it piqued my interest.
The way it was explained was that you didn't need to have employees, have any overhead, or create anything from scratch. All you had to do is sit there and dial-up on a computer from the comfort of your home. All of these boxes started to get checked off in my brain. That business became the perfect business for me and what I wanted out of life.
What are stock options, and what is the strategy that you employ when it comes to trading?
When you look at the stock market there are tons of different ways that you can do anything. There are a lot of Hedge Fund managers and corporate structures that are designed to sell you services or manage your money. A lot of people will tell you that they make the process sound confusing so that you think that you can't do it on your own.
They want that to be the case so that you hand over your money to them and they collect fees. There's nothing wrong with using a fund to have your money managed, depending on what you're doing. Not everyone is designed to manage their own money.
However, it is possible to do it on your own.
There is a series of great books written by market expert Jack D. Schwager. In his first book, Market Wizards, he interviews a variety of successful investors from different markets. All of these people have done a myriad of different things to make huge amounts of money in the stock market.
In his later book, Unknown Market Wizards, Jack talks about the best traders you've never even heard of before. These are people who are making hundreds of millions of dollars. When I started to figure out that stock options are something that you can use as an instrument to create leverage safely, I became very intrigued.
This is how stock options trading works. Say I was interested in buying Beckton-Dickson. This is a company that trades at $240 per share. If I wanted to buy 100 shares I've got to spend a fairly significant amount of money, roughly $24,000. Instead of buying those shares, if I think it's going to go up, I may buy a call option.
This gives me the right, but not the obligation, to buy those shares at a certain price. What's great is that you're going to pay far less money. Oftentimes, 5-10 percent, depending on the price of the stock and how much it moves.
When I'm buying an option, I don't ever want to exercise it.
All I'm doing is hoping that the premium goes up and that I re-sell it, just like somebody would hope a stock goes up, and then maybe they would sell it. With an option, everything becomes magnified. Maybe the stock would move a dollar. If the stock is $240, you're making the tiniest of percentage. However, your option, if the stock moves a dollar, might go up 10%.
There have been instances where every penny a stock moved, I would make hundreds of dollars. However, it wasn't because I owned all of these shares. Rather, it's how my options were working. You can start with small amounts of money and generate some real significant ROIs. That being said, a word of caution.
Options can be risky because they eventually expire. You choose the end date. Oftentimes, the layperson lets their options expire. I have never let an option expire because I have a rule. Again, keep in mind that I've been doing this for over 20 years. By creating this rule of always getting out 30 days before the expiration, I don't ever have to worry. Hence, I dramatically reduce the risk.
How much money and time do you need to start trading options, and how much money can you expect to make?
Before I get into that, I would like to preface this. In one corner we have our business, vocation, or job that generates a paycheck or profit. No matter what, a portion of that money should always be invested in the long-term. At the end of the day, that's how you become wealthy.
With short-term investing, the same thing holds true.
When we look at how much money you need to get started, it will be different from one person to another. Even people who come to me that have millions of dollars in the bank, the most I ever tell them to start trading is $10,000. I want them to get their feet wet before they start throwing money around and make some crazy mistakes. You have to know how to walk before you can run.
When I got started, I was still in high school. I was working at Dairy Queen and teaching swimming lessons. It took me over one month to put together $1,000 dollars. One of the great things about trading options is that you don't need that much money to get started. Because you're not buying the outright stock, you're buying an option on it, you can get started for quite a bit less.
I was doing trades at $300-400 dollars at a time.
Fortunately, I took to it like a fish to water. Within my first 90 days, I tripled my money. I made $3,000. I used that money to grow my business. Today, I only spend 5 hours per week managing my trading business. I generate a pretty amazing ROI on the money that I have in my trading account, while still having plenty of time to do the other things that I want to do.
Can you share more about your course, The PB Code? Why did you create it, and what can people expect to learn when they show up for your free training?
I believe that we can all easily understand the stock market. It's merely a story. We all know stories. We heard them growing up. I started to think about how I could teach someone who knew nothing about the stock market how to not only understand it but also make a profit from it. With options trading, it was through understanding three primary stories. The cool thing about these stories is that they stand the test of time.
They are the same stories that I've been studying and using to profit since the early 2000s.
I've helped many people do the same. What's fascinating is that someone can use just one of the stories and a handful of companies, like Apple or Google, and be able to trade those companies for years to come. Once you understand how the story works and when to enter and exit the scene of the story, the pieces start to come together.
That's what I'm going to show people in my upcoming training class. I'm going to give them some incredibly transparent and real-life examples of my successes and my failures so that they can learn from both sides of the coin. As a trader, you don't have to win every trade. I focus on maximizing my winners and minimizing my losers.
Someone who doesn't have a trading plan or a process in place ends up doing the reverse. They cut their winners short because they are afraid to lose their profit and they always hope their losers will turn around. In the training class, I will walk people through the exact rules and principles that I follow that have enabled me to not only trade for as long as I have but to continue to do it successfully.
Stock options trading is the perfect lifestyle business.
If you have the desire to build a lifestyle business that affords you the ability to work less and live life every day on your terms, I highly encourage you to consider getting into the world of stock options trading. If you're serious about learning more about investing and trading, join us at our upcoming training. This is an opportunity that you don't want to miss!
Want to discover the PERFECT lifestyle business that can allow you to create financial freedom? CLICK HERE to join Ryan and me in the upcoming “PB Code” training!