Can we quit job and invest in stocks full time?

[tech/a]

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

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.

The whole idea is to out perform the market.
20-30% return should be relatively attainable by a half average trader.
Trade margin (Same ASX200 stocks) so your leveraged around 2:1 so thats a 60% return.

Starting capital is the key and $100K would be far to small.

What sort of business would you be able to buy for $100k---not a lot.

$300-500K would make the maths more viable.
Continued drawings to live and the tax issue of 3-50% depending on how your structured all eat into return.

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

This method was designed and tested with data from 1995-2001 market performance was less than stellar in that period.

**** Most methods designed by traders are nothing more than a set of trading rules---- This normally equates to in consistent return at best and failure at worst as traders follow blindly flawed plans.
Those who properly test will have a set of numbers which show positive expectancy and a "blueprint" of tested performance.
provided the trading in realtime stays within the blueprint---then results will be as expected. if not then you'd immediately stop trading your method---In 4 yrs all is within the Blueprint.---This is the main criteria I see missing from traders plans.

Abundant in "should be's" but no definables.

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.

Hardly---but I can see youve seen me on the parallel bars!

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

I really do think the answer lies in the above. ***

 

[Julia]

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.

Hello Tech,

Exactly. Thanks for posting Nick's chart.
That's why I'm curious as to the basis of Nizar's assertion.

Julia

 

[tech/a]

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

Just on Techtrader.

I get the impression that everytime I post referring to T/T that there are some who believe I'm putting it up as the system of systems.

Thats NOT the case.

A group asked the question years ago of wether it could be done ( develope a profitable system and trade it profitably by people who werent "In the Industry")---so we set out to see if it could.
Its the only system that I know of which is fully disclosed and on the nett traded live. Results have not only suprised many but are well above my own expectations.

If there are more please let me know I like to see where there maybe areas of improvement. T/T isnt perfect I know that.

Its purpose was initially to answer the question and now has taken the position as an example of what can be achieved and how to go about (In one way) of achieving profitable results using a tested system.
A basis from which others can work through.

I have tested over 200 trading systems from various sources.
I have only found a handful which return consistent profit beyond their index.
Even in this "bullmarket".

Stevo here trades one of them.

Its an easy,time saving and profitable way to trade but only one way of many.

 

[nioka]

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

And don't forget to take into account inflation, The silent destroyer.

 

[violet]

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

Hi all,
Thanks alot for your time to answer my question,
100K is not a big amount when it comes to stock, as you all said, self-study is the best way to go, i am learning this bit by bit and for the next few months, i will be reading this forum and try to learn as much as i can
I hope i can find a system where i can use to at least not to risk 100k
I put the money in the bank now and the return is 5.45% /year only.
I think we can do better than that.
Thanks for your time.
Tony

 

[GreatPig]

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

I put the money in the bank now and the return is 5.45% /year only.
I think we can do better than that.

Remember though that it's also easy to do a lot worse!

GP

 

[theasxgorilla]

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

Remember though that it's also easy to do a lot worse!

GP

I was just thinking that!

 

[Julia]

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

Hi all,
Thanks alot for your time to answer my question,
100K is not a big amount when it comes to stock, as you all said, self-study is the best way to go, i am learning this bit by bit and for the next few months, i will be reading this forum and try to learn as much as i can
I hope i can find a system where i can use to at least not to risk 100k
I put the money in the bank now and the return is 5.45% /year only.
I think we can do better than that.
Thanks for your time.
Tony

Tony,

If you've decided you're eventually going to invest/trade with the funds,
if you add a couple of $ and open an E-trade account, you will get 6% on the entire balance, i.e. they pay 6% over $100,000.

Julia

 

[violet]

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

Hi all,

6% over your capital is better than the NAB bank already!

I will definately put some money in stock, i dont have experience on stock, but i think i will gamble a big time.
cant sit on the fence any longer,
thanks alot for your time
Tony

 

[tech/a]

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

i dont have experience on stock, but i think i will gamble a big time.

I'll take a punt and say---

So that will be a BIG TIME not a LONG TIME.

 

[sails]

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

Hmmm, interesting. Topping markets always seem to bring out the newbies wanting to give up full time jobs and throw their savings at trading

I guess the big boys need plenty of new buyers so they can sell. Not saying the top is in place (unfortunately I don't have a crystal ball), but there's been a few of these types of posts lately - just interesting!

Take care out there and at least make sure you know how to use good risk management!

P.S. Tech - good to see you still posting!

 

[violet]

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

I might try blue chips first and then see what happens next.
thanks for your advise

 

[Porper]

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

Hmmm, interesting. Topping markets always seem to bring out the newbies wanting to give up full time jobs and throw their savings at trading

I guess the big boys need plenty of new buyers so they can sell. Not saying the top is in place (unfortunately I don't have a crystal ball), but there's been a few of these types of posts lately - just interesting!

Take care out there and at least make sure you know how to use good risk management!

P.S. Tech - good to see you still posting!

Good post Sails, I was going to post something similar but you beat me to it.

I can remember the crash in 87 well although I had only just left school.I remember people giving tips who had never traded or invested before, we all know what happened soon after.I am not saying we are at the top but I suppose when we are supposedly all making easy money we get a bit nervy as to what is around the corner.

 

[violet]

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

I dont believe when people say that 97% will lose money no matter what!
How can I lose money if I invest 100K cash in Woolworths and take out after 1 year, I am sure Woolworths will still be around by that time, am I right?

 

[markrmau]

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

What if you invest $100k in WOW, and it drops 20%?

It can happen. If there is an outbreak of inflation (and our labor market is VERY tight). Then cash will be a more valuable investment than shares, and consumer spending (even on essentials) will go down as well. WOW COULD drop 40%.

 

[tech/a]

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

I dont believe when people say that 97% will lose money no matter what!
How can I lose money if I invest 100K cash in Woolworths and take out after 1 year, I am sure Woolworths will still be around by that time, am I right?

As you'll find out its easier to lose capital than to gain it. Traders (over the long term) are at more risk than those investing.
But there are no guarantees---in the short term.
The use of the word gamble has got a few eyebrows raised. If you want to gamble buy $100k of lotto tickets.

 

[violet]

thanks for response,
this 2year chart looks OK to me

 

[Kauri]

thanks for response,
this 2year chart looks OK to me

What does the next two years look like???

 

[violet]

yes, i agree with you, chances of losing 100% capital is very slim, and they are not scammers i hope

 

[ice]

It's all in the timing.
A 2 year chart of BHP looks mighty impressive too....if you pick the right 2 years.


ice