Here's the Video Transcript:
Pierre Lawson: Secrets to Winning the Stock Options Game & Trading for Consistent Income // Options trading basics, options trading tips, options trading for beginners, options trading 101 davidmoadel wallstreetjackboyz welcome to looking at the markets with David Modell today I have the pleasure and privilege of speaking with mr. Pierre Lawson from Wall Street Jack boys with a Z dot com great stuff love the website love the facebook group and we will be talking about that but first of all welcome mr. Pierre Lawson to looking at the markets hello sir how we doing today I'm doing pretty awesome man thank you I fast and I thank you for having me on the show I'm truly autumn and thank you yeah absolutely uh can you tell me about your background in trading and finance um well you want to start like how I got into it or just you know my background on it yeah yeah I you know how did you get started and the whole options game right um I try to shorten it up my background is from the music industry as I'll come for the music industry songwriter you know artists I ran a label then I got into production and in engineering so very technical when it comes to the engineering side of things so as I ran and operated you know my studio in a few other studios built a few studios on but I left the music industry I left the music industry and got into I got into insurance I got into real estate and coming across those things I landed across stock said no I call these things for millionaire blueprint and so I was when I think about it uh you know you have to have these things in portfolio you know these are typically things that you are finding and uh you know the wealthy uh no wealthy individuals portfolio so this coming across that I end up coming across learning real of statements doing real estate store like some tax paying tax deeds and you know some of the you know wealthy guru guys they you know got into you know long-term investing into stocks and so I started you know dive into you know long long term investing would you call it investing and stocks and then of seeing how they were starting to hedge their portfolios and things like that what options and then generating income you know I me and it it was something special about options versus stock single stocks was good but it was the whole thing we're seeing guys generating income now that that really sucked me in I like you know so you mean like I can like pay myself a paycheck hype you know if I do I'm into that you know I mean that's what led me into that I like the sound of that generating consistent income that consistent paycheck now stock options have a reputation for being very risky now are there ways for people to trade options more safely or with limited risk oh absolutely and that's the thing about with what options were stock is so much more you can do the options versus with what you can do it start so there are faithful ways to invest into options however arm and you understand I have a background in insurance so risk management is you know it's what insurance is all about it's all about mitigating risk you know you take risk and everything that you do in life whether you know it or not you know I've you know clients that you know an insurance world and say well how do you know how you guys going to deem me on my insurance somebody hit me in a car accident well reason is because you decided to get in your car get on the road every time you get in your car you get on a roll you're taking a chance taken a chance of being involved a car accident okay I gotta go to work well that's just a chance that you gotta take right so it's the same thing we would invest into making money you have to take risks to make money you know so and that's one of the good things about for new traders I think they have to understand a lot of people don't really like Coach them and tell them is that you have to have experience you know as you start to get experience then you start getting better at understanding risk and you get comfortable with risk so that's one of the things far like new traders they you know don't understand how to you know get comfortable with taking risks but that's what I'm thing comes in but once you get comfortable with wrist and you would totally understand the whole investment game yeah yeah absolutely um now I want you to tell me about this website which I love so much Wall Street Jack boys and you gotta remember that's with a Z not with an s dr.
Lee yeah both the web site and the services you're offering right now and do you have any special offers for new subscribers right now yes actually we have the new subscription on of course check out the website Wall Street Jack boys with Izzie calm right now we have the annual subscription when you get all our education courses you get access to the blueprints and then you also get the forty percent off on the wall street chat boards trading journal and I'm very proud of that one because that's something that's been very instrumental in my career and I think that it's going to definitely help build our community of traders to help them mitigate their losses and you know grow stronger winds you know but I designed it with that in mind it's pretty awesome and so I like that you guys also get access to the private the facebook group that we have almost 300 members that's in there and we're still growing you know but having you know having that community having the squad is what I call it as you know I'm not to formal with things but I like to keep things real so we're gonna keep it real we got a squad of other people that's doing the same exact thing that you're doing so therefore you know you got peer to peer relationships in there we you know you're able to help you know I'll grow other people and learn from other people besides myself you know I mean so yeah with the back it's a community at Wall Street Jack boys calm and at the facebook page and we'll be talking more about that just wanted to get in the options specifics open interest now that is defined as the number of options contracts that are still open and have not been closed out or expired or exercised now what do you recommend at least 100 open interest when placing an options trade oh good question man 100 of better that's one of my guidelines of course you can make trades under 100 but we try to have rules with trading and try to stick to our rules and the rules actually are there to prevent you from you know unnecessary risk uh as far as getting stuck in a trade you had to have you have to have interests for you to be able to tre you have that other people in there so that you can you know you have to have if it has to be a bio on the other end of what you're selling right so you have to have other people that's participate in that and if you have anything that's under 100 what the problem is was not happen so say for instance if you're involved in a trade and you have you know some nice profits you know maybe you know hit one hundred percent profits and maybe it was only 20 people that was in their trade and maybe those 20 people are at work you know working their regular jobs you know just even know but were there not there's only 20 people you know I mean I'm just this for instance and you're trying to lock in your property trying to get out now and so you put in your order and your order never gets filled and then the price action starts to reverse on you and then you start losing money and you're trying to get out of trading you cannot get out of tray so the purpose for me said in the guideline at a hundred is to prevent you know traders from getting stuck in a trade you know oh that's so that's a bad feeling so once you experience your note how to do it again yeah learning through hard experience so other people don't have to make the same mistakes they can learn from what you've been through I like that yeah speaking of mistakes what are some other basic mistakes that other new our new options traders might make and how can they address these mistakes um I think that you know and again this is a some reason why i started Wall Street jab boys um I think where we have a lot of new traders that come in and they buy you know these programs to teach them how to trade or whatever the case may be a lot of them don't really teach them out of trade they just teach them like uh teach them about options normally teach them how to trade and a lot of the mistakes come from being you know not having a proper education and the application for the knowledge that you get and so what happens is a lot of time to have information overload all this information on it but they don't not apply it and always strategies and things like that and I think ideally one of the socials what happens a lot of times a lot of people try to get the education stuff for free right but free comes with a cost and so that the thing you can go on YouTube you can go try to research a million videos and yes some people can you know become successful at it probability of that is probably very slim though with options is a very complex investment vehicle is not the most complex is out there but ideally you need someone that's going to be able to hold your hand and walk you through it without that in sight of the wisdom of someone else that has experience that you're going to lose a lot of money and that's the cost on the effect of you know free comes with a cost well because is your account if you don't adjust i would say invest in a great mentor you know somebody that's great spend the money don't be afraid to spend the money because we teaching you how to make money so you'll have to sign with me if I no way anybody else is out there's a lot of great guys out there so you know being cheap comes with a cost you know I mean I think that's a major I think that's a major mistake you know as several mistakes but to me that's the one that stands out mostly because that's one of the things that took my trading to the next level is when I actually found the right teacher so yeah I would tell anybody don't be afraid to spend the money I'm you want to get a good deal on your education of course the stuff is very expensive but you know it's something that you take take with you to the grave you know it's like riding a bike once you learn it you always know how to go in the market and beta get some money so yeah and if people are looking for a mentor or a teacher I know that mr.
Lawson you could tell just from the website and from the facebook group that that Pierre has a passion for teaching and I think that's great you're giving back to the community let's talk about the trading Journal what is a trading journal and how do you how are you using that man its trade and gentleman it is geez I don't know how to build a hyper bought it but I don't have to once you actually get your hands on it you would be thanking me so oh the trading journal man it came around me and one of my partners we studying on one of our mentors and and there was gonna sand trays and their decision-making on a particular trade pull out the spreadsheet started plugging in some numbers and he came up with you know the price that he was gonna exit the trade and things like that and he was like dude how can I get my hands on something that you know um and it was such a hassle trying to get him because in they don't offer it was something that he personally used they don't offer to anybody else and so they had you know created a price behind Italy with you want to get you access to it like seven hundred dollars like yeah that's a steep price you know I'm systems this will spread she right and so I just like you know that's got to be something out there when a distant research couldn't find nothing out there not for options they have some stuff out there for like stock traders but for options we're doing more complex you know things like spreads and things like that where you have put multiple legs a trade and then we traded contracts not trading stock itself it's a whole lot more you know complex mechanics behind options and so I went in and started you know I've been building doing this thing for like months you know trying to figure out like formulas and things like that and I teamed up with a I'm a partner out in all romania and then we've got all the formulas together and you know she put the design on it and you know and here we have it so basically what is the washington radar Wall Street job or trading journal it's a trade management tool that helps you to systemize your trades and so that's one of the things when you start learning you're going to want to be able to have a system in place if you want to make a business out of it right oh it's just like any other business you need to have a system for versus just wildly trading and so we have specific targets and things that we're looking for inter trays exit trades and things like that where you're able to put this information in the end of trading journal and when you actually put it in the trading journal it's going to give you the information like the foresight of when you need to exit tray so that you hit your desired targets tells you exactly what your contracts need to be yet you know you bought a contract at you know a dollar in 26 saving celica put credit spread and you want to close it out with fifty percent target you just plug it in and it'll tell you well you need to buy it back at sixty cents or something like that just going off the head here and so ideally what you can do is actually once you enter to a trade you can go ahead and put in your exit order like because you already know your target so if ideally for someone who works a day job you know if you work any things you're not but connect the screens all day like a day trader but you know you just wanna have a peace of mind and just you know understanding that you know I can captivate my profits and things like that so I mean you can put in you know a stop loss and all the other stuff but it helps you with those things ideally it didn't help you you know to go back even with your losses so a lot of times people talk about the winners on so about the boozers but you know when you lose you learn you know I mean so even when you lose you learn and then you're able to build one you know your knowledge in your education and your skill set by having that data in the trade journal and so without having a trade journal basically you know you just take your losses you just emotionally a mess and then you have no data to go back on and try to figure out what happened what went wrong and so with the trading journal is keeping track of all this data for you you put it in you can look it up and then you can start building better strategies you can take a look and say hey I win more with my put credit spreads then I do with buying calls as a traitor that tells you if specifically for your brain and your personality your strengths and your weaknesses and so because you win more doing this particular strategy this is going to help you to make other decisions in the future as far as well you know I'm bullish on the stocks are by a call should I sell a put credit spread like well I want to buy a call but my success in buying calls is just really not in my favorites so chances are because you now have this new data that's going to help you know affect your decision you wouldn't buy that call you know you're going to do a seller put credit spread is because your success level is higher like it's personal management there so notice on the details also account our risk management as well so a lot of times people teach you of course how to make money but don't teach you how to you know mitigate risk we talked about mitigating risks on my blow on accounts so also built into the trade and journey you have this risk management told us in there where you're able to put in your account you're able to see the percentage that you willing to risk and we have certain guidelines and our group that you know it's already us in the group so once you subscribe you'll bear to see the rules and things like that but you're looking for whether you willing to uh willing to risk twenty percent of your account thirty percent forty percent tempers and whatever it is that you willing to risk your better put it in there and then it's going to let you know how much money that you wrist on each particular trade as well so you put that information and you're trying to make a play maybe you see a post that I'm a posted i'm making a play and priceline of something like that and you know getting 10 wide or five wide if your account might you know probably can't handle that type of trades and you would you know you can some people just blindly follow people and you know the thing is everybody accounts are different you know I mean so you just can't follow any everybody because your account is not set up the same with somebody else's so they can take on more risk than what you can take on so the trade journey helps you to you know to understand those things as well so yeah good stuff everybody should be keeping track in some form or fashion what their profit target is what their risk is what's what's their max loss on any trade things like that what are the winners what are they doing well what are they not doing well and the trading journal is a great way to do that now disclaimer I always got to put the disclaimer we are not rooted we are not licensed or registered investment advisors we are not providing any trading or investing advice here now given that are there any stocks companies or sectors that are on your watch list right now that you'd like to tell us about well I'm actually flatten my positions right now I went flat Friday are before the weekend just because of a lot of the you know geopolitical stuff is it's really well right now we don't know if we're going to be in a war or not you know so it's a lot of you know things going on with you know our country you know North Korea and Afghanistan all these other things and these things they have a huge effect on the market so I didn't want to carry any positions over this weekend as well took my little profits and I'll close out my having built my watch list for this week coming up because I normally do them on sunday nights when I I'm actually uh got some free time away from family right I got the free time to take a look that look at that but ideally I mean we always keep paying stocks in the database so famous that's always something to look at some of the first things that I do look at part of things so that's your Facebook the Apple your netflix your google also include a test of the invidious arm and ali baba's and who else we have the spiders you know FCX SP why you know the Russell's you know the indexes so yeah these are the things that stay in my watch list and that's the thing about with you know what options versus no stocks you don't have to really you know feel to watch list or a scanner that's always scanning it because we're looking for we need liquidity for what we you know for what we're trying to do you know so normally you always keep the hot liquid stocks in your database because it's always someplace or you to bear to make in those type of stocks so you know by my watch this those are the things that stay in my watch this paying stocks including the neuro the Tesla's and uh no other hot liquid stocks right now yeah and if you're not in any positions right now there's nothing wrong with that cash is a position in my opinion you know it and it's not glamorous it's not sexy but you know what nothing wrong with keeping dry powder for when the opportunities do come up maybe win some some of the volatile when you get a nice IV implied volatility spike that's when you could be a Salesman of options and that's that's when I often like to strike now I want to talk about your facebook group it's growing so fast what can you tell us who should be joining your facebook group right now man if you are interested in learning options learning stock markets learning how to make the stock market work for you learn how your money can make money then we definitely welcome to join the group this is a thing for anybody that's new to joins in there it's going to seem like you in a whole different country learning a whole different language this is the the language of money that we're talking about we talking about stocks and the world the world economy so this is money all over the world over sixteen trillion dollars path to the market every day and we're trying to participate and get some money in that and you know the our community is also going to help you to be eight participating in as well so you jump in the group don't give up you know saying when you start up and you see a lot of things you don't understand you charge you hear you know I jargon that you're not familiar with that is a part of the learning process is being in that environment so that repetition we start to get it over and over again if interest going to come to you so this is not a quick you know get rich quick thing you know that we do it takes time and dedication and just being in an environment of loans lenders help you to start understanding a whole lot of things and that's where I work with me you know i jumped in with my gurus and I was completely lost for like the longest time then but you know I've seen them making money and I you know I just knew that you know it works and I stayed in there and you know month after month until it quit and that's the same thing is gonna happen to you guys once you join the group so if you know you want to make money you want to know how to make you know make your money make some money for you and we welcome you to join group yes Asik and you're sending your request and then we'll scope you out and you know if you in there yep and you see me in the group there sometimes as well and I will be placing a link in the description of this video good stuff everybody should check that out I've been in a group preciated man chance me what oh sure I always always like to you know go in and talk shop with with all your all your people it's great it's great oh now I get the feeling you're a Mac d guy for those oh don't who don't know I MACD is a technical indicator moving average Convergence divergence but I see use a number of technical indicators which ones have been the most consistently reliable for you um well I guess the disclaimer should be that you know there's no tool that is a hundred percent accurate of course what we use these indicators to guide our decisions arm where I think I had a Q&A session was it the other day or so I'm just talking about it to try to make things simple for those who don't you know not for me with the technicals just think about it is like you know in school just basic school you know elementary middle school whatever you know you learn math and math and geometry you know you go over patterns and so any of you you know maybe you dropped out of school and you got a GED or something you work at arouse your order selector these same principles applying like pretty much all the other stuff too so you know when you're taking your test you know they test you on my patterns and numbers and you have to be able to identify them and so basically might give your sequence of shapes like circles Square Circle Square Circle Square Circle what's the next shape square name is just the secret is a pattern and so the star game is pretty much works pretty much the same way and we use these indicators to help us identify these type of patterns and behaviors which you know give us the insight of you know our outlook on the market you know whether we're going to take a bullish stance on of the Bears of neutral um but when that being said the tools that I like my favorite tool that I like to use will be the Fibonacci arm I find that the Fibonacci is then you know very helpful and instrumental into my trading and it works more than it doesn't work I've seen I've seen you use the fibs as well as well as the MACD arm now fibonacci retracement techniques are known for being one of the more complex or challenging let's just say that I probably if Elliott Wave is the most challenging fibs might be second so right is it possible for a newbie at this to really grasp the Phipps man um hmm it takes time um it's gonna take time for anybody to get the grass to fit Fibonacci even when I started out with it almost like I actually I actually stopped using it for maybe a couple of months like maybe two months or so and I've got learned from the Fibonacci Queen and it was funny because uh we were in uh in a class enough and I think I made a joke about it or something like that I said something that was funny and she was just like you know looser like you know you're gonna get it you know over time or whatever and so I wanted to buy the book 1 and I was like well I just don't know you know Sam because for one different people use the Fibonacci different ways but you want to be to use it the way that like the Masters using you know I mean and so you try to figure out the way that the experts are using it you know that's you know it's kind of hard and I think that one of the thing is for like most of the Guru's on Fibonacci they're not really good authors in my opinion this is my opinion ok you know this is like you have some people good traders but they're not book writers and so yet it can make a lot of money but I'm gonna go write a book the book is a flop you know because it's not going to help it's not helpful for you so everybody that can trade doesn't mean they can write a book or anything like that you know it doesn't mean they can teach or you know all the other things that come with it but what I've noticed from you know most of Google's with the Fibonacci they're not really good authors i would say um most of the books just have up you know a lot of charts and so for somebody new just looking at a bunch of charter wouldn't make sense you know once you started getting experience and things like that you start looking at the charge to start making connections then it'll start to come you know it start to come better but it didn't having the right teacher man i think that's one of the missing segments in the market is just having the light teacher that can really you know San teach you you know i mean like beyond the books I really use books for reinforcements you know most of the learning comes from experience you know in the field you know very true and I know that you have the heart of a teacher i can tell i have it too i have a master's degree in education and right yeah you're right just because somebody is a great trader doesn't mean they're also a great teacher too two very different skill sets and very few people have both so yeah absolutely and finally option credit spreads ooh I love these I love I love selling puts and calls to people who are bad at math that's one of my passions it's not nice but it's kind of mean but you know what I feel that what you know whenever I sell put her a call to somebody and it expires worthless I I feel guilty for maybe a few seconds and then I remember you know what they would they would do the same thing to me they would take all my money and my grandma's too I've got a real Emmitt it to your wall see jack boy man I got looking in this opposed to taking the money collecting print yep now let's talk about option credit spreads real quick if you have time collecting premium up front and mitigating risk through spreads because it is a spread you're not just selling naked as they say do any tips or strategies to share about these credit spreads and mitigating risk um you know basically of you know if we talking about you know selling a put credit spread that's a bullish strategy so if you have a you know your outlook on the market on a certain stock or so is bullish and this is a great strategy for you use that has defined risk and reward to it so it has a fine bottom it has a defined top and so you know versus are buying a call buying a call I mean you have undefined top you know unlimited you know tops on it but you have other mechanics in options that you know that it negatively affects you as a fire versus being a seller with sellers has the edge so ideally you want to be a seller you know because sellers at the edge with time works on your side and so the strategy itself is basically its idea for uh if the market goes sideways or the market goes up you know so you basically can win is three different ways of marketing going go up buying it down and the strategy here you win in two different ways two out of three so you have a two out of three chance of winning vs are you doing the opposite which is buying a call you need for the start to go up so you only got one out of three ways to win and you have to be right and you got to be right pretty quick with the strategy that we talked about with the spread here um yeah you know your goal is basically to hold onto as much as money as you possibly can you know by expiration ideally we like to get out in and out of the trade before the expiration though but I deal with you know what I'm looking for in these trades in particular you had to be a gauge risk and so that's why I say a lot of things are not textbook and I think they're so you know a lot of times of the new traders come in this is one of my issues because I was trying to stay textbook but everything all right okay I learned this rule and i'll try to stick to this rule in particular but a lot of what we do really isn't so much text book you know the textbook it's like a guideline for you to start but then your account again it's different from everybody else so you may be able to take on a little more risk of somebody else would be a bassoon and so when i set the guidelines in our group when you're looking at the put credit spread looking at your deltas ideal you wanted to be somewhere around like 12 to 26 Delta's um you know that's what I'm looking for in between 12 to 26 but on occasions sometimes I'll go straight at the money because I normally get a big I'm gonna get a bigger credit I'm taking a bigger credit it just depend on you know at the time particular time came out count take on this type of risk right so again if I want to make more money I might have to turn up the risk and among further I go closer to in the money which is at the money the further out of the money i am that's the more safer i'm going to be as far as making a safer move however i'm not going to take in as much of a credit as i would like to so you've got to find your balance there's no perfect setup i would say but as long as you have like that type of guideline think of safety anywhere between 12 to 26 if you want to take on more risk taking more credit go straight at the money and then work your way out of the money so i like to look at that and in conjunction with the open interest cuz you got to make sure you got somebody on other side of trade through its gotta make sure interest if they're trading options for consistent income doing it safely and doing it in a way that people can understand it you break it down I like that so much Mr P R Lawson of Wall Street jack boys with is e dot com I recommend everyone should check out the website as well as the facebook group there will be links in the description so scroll down for that um so thank you very much mr.
Lawson for sharing your knowledge with us today and finally how can people contact you if they want to tap into your insight yeah man you know we got the we got all the social media feeds going right now you got to Twitter account which is out Wall Street jack boys is at war streets with the st so don't spell it out on that wal st jack boys that's on twitter everything else is like the way you sit on the website Wall Street Jack boards for our facebook Instagram you also hit us on the email info at War II jack voice calm um and we're very active on Facebook right now and that's like I would say leading platform as far as communication goes so it definitely is on the facebook I'm you know the sending your request we get to you on that and if I could share just a few last words here before we indeed interview without you know the but we have you know what we created here and again we just started the group The Wall Street jet boys you know four months ago right so April in January so just start it right um and how we came about it is basically on my journey I thought about all the hassles and all the negative things that I had to go through to get to you know basically where I'm at now to get the information that the Masters having it in their head and it's so many obstacles in a way it's got to be a way to simplify this right how can we simplify this complex you know process you know options already complex as it is but we need a better simplified I want to simplify it in a form that you know a 12 year old cat understanding right um it's not enough that that's out there and so a lot of people that start because it has the bad teachers that have a wrong teacher I was doing nothing wrong with teaching David you know what i was talking about stars some people are not meant to teach they could be good traders they're not good teachers and so therefore you have a disconnect with this teacher and the student where the student feel like they're not getting the information that they need and so anyway what end up happening that you know they end up dropping out they quit so that's why you have a huge unsuccessful rate of traders us out there because they never got the right teacher in the first place and they didn't get you know someone to hold their hand and walking through the market you know it's like taking you under my wing and giving you personal you know coaching basically that is necessary for what we're doing and so again you know get all the free resources that you can get but don't be afraid to spend money to learn because you're going to need that it's a cost that you're avoiding the cost i paid us cause here so i can risk blowing my account right you rather blow your account trying to get the free stuff or to spend a little money that's going to help you to prevent that type of loss but you know wait those pros and cons yourself but you know ideally when i started you know just from my background coming from the streets and things like that i have other people you know in my life that I actually taught the options game figured out how to teach them just using Street scenarios and things like that and it worked like perfectly fine because these things click with me when I was confused on certain subjects on options and things you know like you talk about selling high and you know by and low but you gotta reverse operation this stuff you know complex trying to explain it somebody who has no idea what's going on so I try to you know bring it down and that's what we call down the earth simplified actionable approach to the stock options game we're breaking it down you know in a form that you know even the least sophisticated investor would be able to master the concepts and so once i figured that out and i figured that i had an itch you know because it's something that other people are not doing and so is this you mainly dedicated to urban community my style of teaching but make no mistakes we don't discriminate it all we have so many different people that's in a group david yourself we have a lot of people and canada ukraine out in Ukraine out in the UK we have people all over so we welcome anybody if you're into not being into a formal classroom setting where you got somebody this you know talking to you like the guy from the dry commercials and ingesting see you know get in on it man because we have fun with the teaching you know and you know I I don't proclaim to be a guru or anything like that I'm an experienced trader and i share my insight and if you can learn from it you can make money from it that you should making options trading accessible for everybody did and this really is for everybody it's not for you know not for any demographic of people rip you know whether whether you have a small account or big you gotta check out Wall Street jack boys calm mr.
pierre lawson thank you so much so much for joining me today i really appreciate it today I appreciate it man thank you any time in the future man alright thank you for watching please like comment and subscribe and I'll see you next time.