My trading system summary

[pavilion103]

The other huge reason for choosing trading is the semi-passive income aspect of it.

There is a tradeoff in terms of time. I saw two options:

1) Become hugely successful in a career. Work long hours, make my mark and make it to the top.
2) Find a job that I enjoy but allows me the flexibility to pursue trading without burning myself out.


The thing that appeals to me most about trading is that, although there is a lot of hard work early on (i.e. thousands of hours), after this you have something tangible for life that can produce you high returns with little effort. It's like every hour spent goes towards getting the goose that lays golden eggs. Once I have the goose, the golden eggs will come perpetually into the future. At this point I have TIME and FLEXIBILITY.
(That's why a business appealed to me also IF (big if) you are able to delegate and step back)

With a career, the thousands of hours lead to higher paying, more powerful jobs. But you need to continue to work. Sure you have the skill base, but you have no goose, only golden eggs. You need to continue to work hard to produce them.


I currently work as a property valuer in the government. This provides flexi days, standard 7.5 hour work days and the ability to finish at 4pm each day if I choose. This leaves time for a few hours of trading at nights if I choose, without being burnt out after a 10 hour work day.


If there was a career that I was truly passionate about I would have considered pursuing that. But there isn't.


I don't want to be trading all day either. I just want the TIME. I won't be sitting on an island all day either. I'll be pursuing ventures that I am absolutely passionate about as well as having a decent holiday each year.

 

[pavilion103]

By the way, please don't think that I'm objectively saying that one path is better than the other. I have a mate my age who is already a senior manager (27 years old) in an accounting firm earning upwards of $130,000+ and I hugely respect that. This is simply the path that works best for ME and fits MY personality best.

Maybe because I spent too much time reading books like "How I Made $2 Million in the Stock Market" by Nicholas Darvas!

 

[Gringotts Bank]

It's like every hour spent goes towards getting the goose that lays golden eggs. Once I have the goose, the golden eggs will come perpetually into the future.

As a Christian, how does this attitude match up with the following Bible quote?

"It is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God".

Wouldn't that sort of belief create a lot of guilt for a Christian making money gambling in poker and the markets?

Jesus commanded, "Go sell all that you have, give it [the proceeds] to the poor, and come and follow me."

 

[pavilion103]

As a Christian, how does this attitude match up with the following Bible quote?

"It is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God".

Wouldn't that sort of belief create a lot of guilt for a Christian making money gambling in poker and the markets?

Jesus commanded, "Go sell all that you have, give it [the proceeds] to the poor, and come and follow me."

That particular quote is in reference to the attitude of your heart. I actually donate 10% of my money without fail. I'm in the process of looking at paying 50% for someone else to come to India with me because they can't afford it.

One of the biggest reasons I want free time is for a large focus on philanthropic activities. Possibly as my primary use of time. Blessing people financially is an enormous priority of mine and my greatest passion.

My life attitude is to do the best I can with the passions and abilities that I have and use this to bless others as much as possible


Now that I have clarified that, I'm only interested in discussing trading in this particular thread. I hope you can respect that. Thanks.

 

[VSntchr]

GB, what a great system to enrich the church.

Lets not derail the thread tho....

 

[pavilion103]

My futures trading journey has commenced in this thread

https://www.aussiestockforums.com/forums/showthread.php?t=26509&page=19&p=783487#post783487

 

[pavilion103]

It's interesting how one's trading journey can evolve as you go along.

My methodology is divided into four parts.

1) Momentum strategy with ASX equities

2) FTSE Futures medium term strategy (try and get on a moves of hundreds of points with multiple contracts if possible).

3) FTSE intra day trading

4) Sub 10c strategy with ASX equities



The futures strategies are to build up cash in the shorter term which can then be used in the momentum strategy, with a portion put aside for the sub 10c strategy.
I see the momentum strategy as the stable way to grow my account at a reasonable rate.

I see the futures as a way to build money quickly if successful.

Quite excited by all of this, particularly the possibilities with the futures trading.


This journey has opened my mind up to potential that I didn't know existed.

 

[tech/a]

Interesting

I see the futures as a way to build money quickly if successful

If successful why do anything else?

 

[CanOz]

Hmmm,

I think an advantage of running some different strats is more that if one strat is not performing or you don't have time to manage it (FTSE for Eg.), then perhaps the others may perform a little better if not too correlated.

Otherwise, as Tech mentioned, why do anything else?

 

[pavilion103]

Interesting



If successful why do anything else?

Because as the cash builds up, I'd be looking at where I can invest it.

It doesn't require much money (tied up) in the account to trade a number of futures contracts.
There will be plenty of money left over, so why not invest it?


If you can get say 20% on the rest of your money then why not invest that in an equities strategy? Particularly one which is not time intensive!

 

[pavilion103]

Hmmm,

I think an advantage of running some different strats is more that if one strat is not performing or you don't have time to manage it (FTSE for Eg.), then perhaps the others may perform a little better if not too correlated.

Otherwise, as Tech mentioned, why do anything else?

I think these are good points too.

For example in recent months I haven't had the time to trade futures like I was before (I will be back into it when I return from India - start December). I won't always have time to be active in futures.

What appeals to me with the 10c strategy in particular is that once the trade is at BE I can just leave it and not worry about it too much. Particularly if I'm away travelling etc. I like the idea of that.

 

[tech/a]

Interesting



If successful why do anything else?

In answer to my own question

To me it's challenge to master the beast we are trading.
Small caps are different to Blue chips
Indexes to Currencies.
Options to Futures
Discretionary to Systematic

The understanding of one leads to better understanding of another.
The satisfaction of understanding is to me as satisfying as the profit derived.

But as I've often said.
Become an expert at something.
You only need one!

 

[pavilion103]

In answer to my own question To me it's challenge to master the beast we are trading. Small caps are different to Blue chips Indexes to Currencies. Options to Futures Discretionary to Systematic The understanding of one leads to better understanding of another. The satisfaction of understanding is to me as satisfying as the profit derived. But as I've often said. Become an expert at something. You only need one!

I do agree. I often tell people to pick something that they want to do and focus on learning to do that one thing very well.

I do see futures and equities as two different games. But both fulfill different objectives for me. I enjoy spending time learning both.

Will this slow me down in terms of time to become proficient in either? Yes.

Do I mind? Not really

But I have found that I've gone through stages where focusing intensely on one has meant putting the other one on the back burner a little.

I dunno. I'm not naive. I don't want to be the best in the world at either. I'm fairly comfortable with the balance and am passionate about it all.

All in good time for me....

But this doesn't mean that I don't agree with you Tech. When focusing on two things there is a trade off and one will take away focus from the other.