You're listening to the Option Alpha Podcast from Option Alpha.com where we show you how to

make smarter trades learn how the stock market really works and generate consistent

monthly income. Now your host and head trader at

option alpha.com Kirk depluses.

Hey everyone this is Kirk here again from option alpha.com

working every week to make this the most popular investing

podcast offered in iTunes because it's based on one thing and one thing only and that's

helping you make smarter trades. So thanks so much for

tuning in today. We've got a ridiculous show for you guys today. I seriously

believe that if you listen through the end of this podcast today,

you will completely understand why a lot of people

in this business lose money.

And they do it under the auspice of assuming that they're kind of managing their risk and preventing losses.

But this whole concept of stop loss is the worst thing that I've ever heard in my entire life. And I hate that people use it and I'm here to kill

this idea of using stop losses because I don't call them stop losses. I call them money losses because you lose money every time that you use a stop loss

and I'm going to show you here tonight with empirical evidence and hard statistics

and numbers why people lose money when they use stop losses

and it creates more losing trades in their account and they don't even know it.

And so I'm going to go through a bunch of those examples today so that you guys know going

forward a new way of trading and how you can plan your exit in the future.

So let's talk about the agenda for today's podcast. So the first thing

that we're going to talk about is how stop losses work with stocks and options. So if you've

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