Can we quit job and invest in stocks full time?

violet · 10 January 2007

Hi all,

Can you pls tell me if i can quit my job and invest in stock full time?
is it possible?
provided i have 100K cash
pls give me some practical ideas if you think i can do that.
thanks
Tony

silence · 10 January 2007

Re: Can we quit job and invest in stock full time ?

Well, there are many people who do. I plan to at some point.

However, there are so many things to consider.

First, you would want to have a solid backtested trading plan, and strict money management. You don't want to jump in and effectively gamble your life savings away on the stock market.

Are you consistently making money as a part time trader or investor?

If not, full time obviously isn't going to work.

Good luck!

ducati916 · 10 January 2007

Re: Can we quit job and invest in stock full time ?

violet said:
Hi all,

Can you pls tell me if i can quit my job and invest in stock full time ?
is it possible ?
provided i have 100K cash
pls give me some practical ideas if you think i can do that.
thanks
Tony

Unfortunately, by simply asking the question, you have illustrated that "you" are not yet ready to do so.

When "you" are ready, the question will be redundent.

jog on
d998

clowboy · 10 January 2007

Re: Can we quit job and invest in stock full time ?

ducati916 said:
Unfortunately, by simply asking the question, you have illustrated that "you" are not yet ready to do so.

When "you" are ready, the question will be redundent.

jog on
d998

Ducati916,

That has got to be the best answer there is. Violet, don't take offence by the abrubt answer, if it was that easy, everyone would do it, 100k is not that hard to come by.

Start by learning to trade/invest and see where it takes you, one day it may be fulltime, or you may do it to lighten you workload elsewhere, or even just for a suplementry income.

Snakey · 10 January 2007

Re: Can we quit job and invest in stock full time?

yes you can do it... just stop work and start trading with only 10% of your capital... trial and error will teach you how trade successfully. i taught myself how to trade and am now earning twice my original income with 500% better life style. Once I turned successful only then did i look at other trading techniques only to see how others have succeeded and maybe incorporate their techniques as further analysis. good luck.
P.S. highly recommend self taught method

stevo · 10 January 2007

Re: Can we quit job and invest in stock full time?

I guess anything is possible!

KIWIKARLOS · 10 January 2007

Re: Can we quit job and invest in stock full time?

I do envy you guys a bit it would be good to be your own boss plus lifestyle advantages etc.

The only thing that would concern me would be income security, what happens if the market slows or you get sick etc? Plus if you have mortgage repayments etc or want to get a loan you could be in real trouble if things go pear shaped.

For me I have only maybe 20K to invest with, I've started heading more towards medium term investments which are more "safe" compared to speccies simply because of the risk.
I'm interested to hear what other peoples investment strategies might be for people with small capital like myself?

tech/a · 10 January 2007

Re: Can we quit job and invest in stock full time?

Kiwi

5 yrs ago I was asked the same question with regard to small capital bases and if it was possible to gain a meaningful return.

So techtrader evolved.
4 yrs later a $30k starting capital traded on Margin (we used BT Bankers trust).

The original $30k is now $390K less the $70K borrowed.

http://lightning.he.net/cgi-bin/suid/~reefcap/ultimatebb.cgi?ubb=forum;f=74

Many have used it as a base from which to develop their own methods.I have around 16 who keep in contact with me who are enjoying similar returns to the model on Reefcap.

MalteseBull · 10 January 2007

Re: Can we quit job and invest in stock full time?

I wouldn't quit the job, however work less hours (casual?) just as a security to if the market or your shares in particular happen to crash.

nizar · 10 January 2007

Re: Can we quit job and invest in stock full time?

KIWIKARLOS said:
I do envy you guys a bit it would be good to be your own boss plus lifestyle advantages etc.

The only thing that would concern me would be income security, what happens if the market slows or you get sick etc? Plus if you have mortgage repayments etc or want to get a loan you could be in real trouble if things go pear shaped.

For me I have only maybe 20K to invest with, I've started heading more towards medium term investments which are more "safe" compared to speccies simply because of the risk.
I'm interested to hear what other peoples investment strategies might be for people with small capital like myself?

You need to broaden your understanding of RISK. You need NOT take on more risk if you invest in specs. In fact, specs probably increase the return side of the equation, while the risk can be kept constant.

In my opinion, those safe bluechip buy and hold, never use a stop, permabull types take on HEAPS amounts of risk.

I started with around 20k, now well up, but yes it could all be a fluke (but who cares, i enjoy the gains anyway).

But of course i remind myself daily: Dont confuse genius with bullmarket.

Julia · 10 January 2007

Re: Can we quit job and invest in stock full time?

nizar said:
In my opinion, those safe bluechip buy and hold, never use a stop, permabull types take on HEAPS amounts of risk.

Nizar

I'd be interested in the rationale behind your suggestion that buy and hold of blue chips involves "HEAPS" of risk. Don't know why you would imagine that people who buy blue chips and who prefer to hold for the medium or long term, would never use a stop, and are "permabulls" as you put it.

Julia

tech/a · 10 January 2007

Re: Can we quit job and invest in stock full time?

Julia.

Nick Radge posted this once to me.
Its a copy of the ALL ords since inception.
It CLEARLY shows why a buy and hold strategy will be longterm profitable.

From a personal view point maximising profit can be achieved by having a TRAILING stop.
Initial drawdown can be minimised by using an INITIAL stop.

However those who arent proficient in their use can have comfort in the knowledge that in 130 yrs the market has shown steady increase.

Now for those calling a 130 yr top---Ive been trading 12 yrs and EVERY year there is a panick that THIS YEAR is the top of the market.

dhukka · 10 January 2007

Re: Can we quit job and invest in stock full time?

tech/a said:
Kiwi

5 yrs ago I was asked the same question with regard to small capital bases and if it was possible to gain a meaningful return.

So techtrader evolved.
4 yrs later a $30k starting capital traded on Margin (we used BT Bankers trust).

The original $30k is now $390K less the $70K borrowed.

http://lightning.he.net/cgi-bin/suid/~reefcap/ultimatebb.cgi?ubb=forum;f=74

Many have used it as a base from which to develop their own methods.I have around 16 who keep in contact with me who are enjoying similar returns to the model on Reefcap.

I don't want to rain on your parade tech/a - 390k from 30k in 4 years is impressive however that 4 year period coincides nicely with the current bull market cycle wouldn't you say? I will be a lot more impressed when you can show the same kind of return in a protracted bear market. Good luck

tech/a · 10 January 2007

Re: Can we quit job and invest in stock full time?

dhukka said:
I don't want to rain on your parade tech/a - 390k from 30k in 4 years is impressive however that 4 year period coincides nicely with the current bull market cycle wouldn't you say? I will be a lot more impressed when you can show the same kind of return in a protracted bear market. Good luck

Well its a long method if it didnt perform in the conditions it was designed for then it would be pretty poor.

In a bear market the system wouldnt perform as profitably as it would in ideal conditions. This particular method may show that its best not to trade it in certain market conditions,not take new trades,or any number of possibilities.

I'm always amused by those who are quick to point out PAST conditions.
like telling a property investor that you'd be more impressed with their returns on property in periods of downturn.

Reality is taking advantage of opportunity that is offered up.
This is exactly what the system has been designed for---infact all long trading systems are designed for the same thing.

Strange how the large majority of traders cant make consistant profits regardless of longterm market conditions.

theasxgorilla · 10 January 2007

Re: Can we quit job and invest in stock full time?

tech/a said:
Now for those calling a 130 yr top---Ive been trading 12 yrs and EVERY year there is a panick that THIS YEAR is the top of the market.

But this year it's different!

KIWIKARLOS · 10 January 2007

Re: Can we quit job and invest in stock full time?

Can you tell me more about techtrader and reefcap?

What exactly are they, modelling software?
I haven't used any software to analyse the market from what I understand it is very expensive to buy and can be tricky to use.

GreatPig · 10 January 2007

Re: Can we quit job and invest in stock full time?

But if you fit a curve to the bottom of that XAO chart, as vague as it is on that picture, I think the current value would be quite a long way above the line (I would put such a line currently below 3000 as a rough estimate).

Which means plenty of opportunity to lose lots of money as a long position holder if the market is due for another return to the base line.

GP

theasxgorilla · 10 January 2007

Re: Can we quit job and invest in stock full time ?

violet said:
Hi all,

Can you pls tell me if i can quit my job and invest in stock full time?
is it possible?
provided i have 100K cash
pls give me some practical ideas if you think i can do that.
thanks
Tony

Without going into too much detail, the ASX200 index appreciated 15% over the last 12 months. I don't see how you can "invest" full time and live of this kind of a return on $100k. You'll need to figure out a method for outperforming the market and to consider leveraging your funds.

dhukka · 10 January 2007

Re: Can we quit job and invest in stock full time?

tech/a said:
Well its a long method if it didn't perform in the conditions it was designed for then it would be pretty poor.

agreed

tech/a said:
In a bear market the system wouldnt perform as profitably as it would in ideal conditions. This particular method may show that its best not to trade it in certain market conditions,not take new trades,or any number of possibilities.

OK

tech/a said:
I'm always amused by those who are quick to point out PAST conditions.

I'm always amused by those who ignore past conditions.

tech/a said:
like telling a property investor that you'd be more impressed with their returns on property in periods of downturn.

like telling your mum you came first in gym class without telling her there are only 3 people in the class and one is blind and the other has a broken leg.

tech/a said:
Reality is taking advantage of opportunity that is offered up.
This is exactly what the system has been designed for---infact all long trading systems are designed for the same thing.

obviously

tech/a said:
Strange how the large majority of traders cant make consistant profits regardless of longterm market conditions.

Hardly strange given the lack of experience and expertise of the average trader.

dhukka · 10 January 2007

Re: Can we quit job and invest in stock full time ?

theasxgorilla said:
Without going into too much detail, the ASX200 index appreciated 15% over the last 12 months. I don't see how you can "invest" full time and live of this kind of a return on $100k. You'll need to figure out a method for outperforming the market and to consider leveraging your funds.

Good point. Lets assume you quit your job with $100k and have no other sources of income. You own your own home have no debts and your expenses are food and the usual bills such as electricity, water, telephone, internet, yearly rates etc. What's the minimum you would need to sustain this relatively frugal lifestyle? 15 - 20k? Thus you need a 15 - 20% return just to preserve your initial capital. What are the chances of making this kind of return consistently over a 25 year time horizon?

Can we quit job and invest in stocks full time?

violet

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