Psychological aspects of becoming a full-time investor

[tmhy]

I believed quitting one's job and becoming a full-time investor has been discussed a number of times on this forum. It is a dream for many. I do not want to talk about the financial aspects as it is easy to determine whether a person can pass the financial test of becoming a full-time investor. Just do the numbers based on past years of expense and investment gains, then add a conservative margin of safety. It is an objective exercise.

I am torn about the non-financial and social aspects of becoming a full-time investor. I would like the sensible folks here to share their opinions openly and harshly, if you need to. Just speak your mind. I will speak my mind as well.

Here are my reservations;

- How would society view someone who is still reasonably young (early 40s) and quits his job to become a full-time investor? I do not view investing highly as a socially useful activity. Little useful stuff is created from the buying and selling of securities in the secondary market. I admit this sounds hypocritical given that I am harbouring thoughts of becoming a full-time investor.

- Investing is a lonely activity. I operate alone. When I have a job, I still have a group of friends and colleagues to talk to. After I plunge into full-time investing, the loneliness is going to be acute.

- Am I setting a good example to my kids? "Dad is always staying at home. He is always telling me to work hard and yet he just quits his job to do his own thing. His so-called passion. Why can't I quit school to do my own thing and play computer whole day?" Will my children work less hard in life as a result? Will my children look down on me?

- How do you answer relatives who will be surprised at a person who quits your job and staying home all day picking stocks? I don't feel comfortable revealing my financial condition. Neither do I want them to think I am not able to find a proper job and resorting to investing as a final resort. "Why doesn't this guy find a proper job and contribute to society instead of staying at home all day clicking buy and sell?" Don't want people to think I am a loser. Would it be a good idea to start a shell company and tell them I work for this company? Christmas is going to be dreadful.

 

[howardbandy]

I believed quitting one's job and becoming a full-time investor has been discussed a number of times on this forum. It is a dream for many. I do not want to talk about the financial aspects as it is easy to determine whether a person can pass the financial test of becoming a full-time investor. Just do the numbers based on past years of expense and investment gains, then add a conservative margin of safety. It is an objective exercise.

I am torn about the non-financial and social aspects of becoming a full-time investor. I would like the sensible folks here to share their opinions openly and harshly, if you need to. Just speak your mind. I will speak my mind as well.

Hi tmhy --

Your opening paragraph says you do not want this thread to be about the financial aspects. But you must be assured the techniques you will be using provide enough increase in your trading capital to fund living expenses, and also be safe and consistent enough so as to not seriously reduce your capital during periods of poor performance.

I assume you will be using quantitative methods where the development of your technique was done using good modeling and simulation procedures -- including out-of-sample testing on data not used at all during development. From that set of out-of-sample trades, calculate the distributions of profits and drawdowns. Run some simulations of equity. Can you live the life you want on the profits? Can you tolerate and recover from the losses?

If the answer to both those questions is yes, then consider the social and other aspects. If the answer to either is no, then continue working to earn income while you refine your trading techniques.

If you will be using subjective rather than quantitative methods: stay in your current job; set up a small, say $20,000, trading account; buy and sell small but meaningful (say, $10,000 at risk at any given time) positions for a couple of years before committing to full time and fully funded.

The numbers are daunting. Assume you need $50,000 per year in trading profits. Your OOS results will probably show that the distribution of yearly profit when the mean is $50,000 is a standard deviation of $100,000 to $200,000. That is -- the standard deviation of most trading techniques will be 2 to 4 times the mean. Some years you will gain $50,000; other years you will gain $200,000; and there will be years when you lose $150,000. Losing years are not always followed by recovery years. If the average gain per year of your method is 10%, your initial trading account must be at least $500,000 to provide the $50,000 average draw per year -- $1,000,000 would give a safer cushion for the losing periods. Adjust the numbers to fit your own conditions. But run the simulations of profit and risk before beginning to trade large size. Try not to fool yourself.

When you are convinced that you can generate the cash flow you need, make a business plan. Then have some serious talks with your wife, friends, relatives, business associates. Show them enough of the details so they can make an assessment and give you their advice -- both on the business part and on the social part.

Best, Howard

 

[galumay]

I imagine one of the biggest issues, if you are talking about being an investor, as opposed to a trader, is the boredom. Investing is long periods of doing nothing and boredom, indespersed with doing very little.

I cant imagine ever ONLY being an investor, I would always need other interests, hobbies, and work to create a meaningful life.

Personally I would be less worried about what others thought of the structure of my life, as far as your kids go I would see it as a positive example - there are other ways to structure your life and work.

The social element I think you can fulfill in other directions - thru your other interests or maybe if you do something like volunteer work in the community to fill in the time.

 

[tech/a]

This is seemingly a standard question asked many times here.
But there is a twist.
My answer will be a little left field.

Job satisfaction

From 40 yrs in business Job satisfaction and importantly satisfaction within your life---
I've found to be having a value to society --- a worth---recognition.
There is nothing more fulfilling in work and indeed life than to be adding value to others
life on so many levels from your friends, work colleagues, wife, kids, parents to (For me) Helping well planned passionate start ups.
Trading in itself does not fulfil, what I believe and have seen is a basic life necessity.
We all have it from Buffet to Bill Gates to Howard Bandy to You and I.

There is a thread on this Site dedicated to the topic of being an EXPERT at something.
It doesn't matter much what it is that you become an expert in/at but once you do people
will beat a path to your door seeking the expertise they don't have. This is worth more than money.

Money comes. If your good at what you do you never have to worry about money. That maybe
as simple as being the best you can be in your job---a valued employee with an expertise.

If your an expert then you'll make more than you need. Howard made the comment that he wouldn't know what to do with more money and a flippant reply was Ill have it! There are many I know who are very wealthy traders and investors and without exception they all do a great deal more than trade.

Without exception and with some experience I and they will tell you that successful profitable trading is as boring as Duck Droppings. You'll need More and some how I think you've already alluded towards that.

The Money component

Make no mistake Trading/Investing is a business. Howard has made comment on a generalised capital requirement. Don't discard it! Any business of any worth will require sizable funding.
To expect to make a salary before profit of 6 figures without a 6- 7 figure investment is at best rare as Rocking horse dodo and at worst fanciful. Most businesses--the ones that mostly fail are those who are undercapitalized and started on impulse.

A good business will return from 10-30% on investment regardless of what it is that it does. Returns above this are rare and below this common.

So before you commit be very aware of the Numbers. They mean everything to EVERY business owner---that's going to be you.

Your reservations

Society, Family, Wives, Friends without exception will be supportive in the good times fearful and a little less supportive in the bad times.
You will be perceived as successful in the way you live. You wont have to tell anyone---they will just see it. Once you've made it there is nothing to prove---most importantly to your self.
Don't fall into the trap of shouting from building tops when you have small successes only to have to retreat to the basement when life dissolves your success when your on the roof again there will be less below listening.

Above all peruse your passion your happiness and success is everyone else's who comes in contact with you. Enjoy life it is a fleeting gift.

The best we can do is look back on life and say--Man that was a blast!

Good luck. (Make your own).
Daffy.

 

[Lone Wolf]

I'm not a full time trader, but I am a member of society... kind of.

You posted four reservations, three of them are all actually the same thing "What will other people think of me?". Think of all the people in the world and how much their opinions vary. Their opinion of you will cover the full spectrum. Some will think very poorly of you, an example of all that is wrong with the world. Others will hold you in high regard, looking up to you as a man who forged his own path to success and is now enjoying the lifestyle he has chosen for himself.

I think the real question is how do you feel about being a full time investor? Can you take pride in what you do? Or will you feel guilty? Are you comfortable enough with who you are to ignore the opinions of others?

Here are my reservations;

- How would society view someone who is still reasonably young (early 40s) and quits his job to become a full-time investor? I do not view investing highly as a socially useful activity. Little useful stuff is created from the buying and selling of securities in the secondary market. I admit this sounds hypocritical given that I am harbouring thoughts of becoming a full-time investor.

There are many who don't contribute to society. And many who probably don't contribute as much as they think. Some are poor due to their own poor decisions and survive off handouts collected from the "rich people" who they throw insults at. Others turn up to work and spend the day trying to do as little as possible while still having a job to come back to. Some work in jobs that others think should not exist. A butcher isn't a valued profession to a vegetarian. A coal miner isn't held in high regard by an environmentalist.

I'm an engineer. I'm one of the cogs in the machine that helps mining companies transport coal out of the country so that it can be burnt and pollute the atmosphere.
1 - My services are generally considered a valued contribution to society. But many would prefer the coal stay in the ground and out of the atmosphere. How much good do I really do?
2 - If I quit my job tomorrow I would be immediately replaced by another. In reality, quitting my job would open up an opportunity for someone else. Some family man out there struggling to make ends meet would love my job. Selfishly, I won't let him have it yet.

There are many companies with many employees producing products people don't really need (but do want). It's all a matter of perspective as to what is a valuable contribution. Who's perspective do you value?

- Investing is a lonely activity. I operate alone. When I have a job, I still have a group of friends and colleagues to talk to. After I plunge into full-time investing, the loneliness is going to be acute.

I can't offer any input here. I'd be ok with it, prefer it even. But it is a very valid point to be considered carefully.

- Am I setting a good example to my kids? "Dad is always staying at home. He is always telling me to work hard and yet he just quits his job to do his own thing. His so-called passion. Why can't I quit school to do my own thing and play computer whole day?" Will my children work less hard in life as a result? Will my children look down on me?

Doesn't that come down to what you teach your kids? Most people need to work hard to build up a capital base before they are able to invest it. Teach your kids that if they work hard and save their money, they too will have the opportunity to choose how they live their lives. Most people spend their lives as wage earners, not because the want to, not because they want to make a valued contribution to society. They do it because they have to, because they were unable to generate any other opportunities for themselves.

- How do you answer relatives who will be surprised at a person who quits your job and staying home all day picking stocks? I don't feel comfortable revealing my financial condition. Neither do I want them to think I am not able to find a proper job and resorting to investing as a final resort. "Why doesn't this guy find a proper job and contribute to society instead of staying at home all day clicking buy and sell?" Don't want people to think I am a loser. Would it be a good idea to start a shell company and tell them I work for this company? Christmas is going to be dreadful.

Family opinions are just like any other, so nothing to add here. Except that I think it's a bad move to be starting shell companies just so that you can pretend you have a more "acceptable" job. If you feel that guilty about it then maybe you shouldn't be doing it. Go do something you can take pride in. If you are a successful investor then I think that's something you can take pride in. But it's your opinion that counts.

Keep in mind that most negative opinions on trading/investing for income probably come from spite/envy. There are people who don't contribute much to society despite having "real jobs". Nobody questions them. But trading/investing for a living generally requires you to have money. People who wish they had more money are quick to tear down people who do.

 

[skyQuake]

my 2c:

Brokers are your best friend. Ignoring the fact that they live off your commissions, the bring some very valuable services to the table:

Analyst Research - some good stuff to learn from when starting out but by no means worth relying upon.
Access to the IPOs/pre-IPOs/seed rounds - This is the area where a skilled investor can really shine: The catalyst is generally well on the horizon and you're also generating 'social value' by funding the future GEs, Caterpillars, IBMs, Facebooks etc
Conference calls/meet & greets - Meeting management and sussing out the key figures is all but impossible unless you have a few yard under management
They have to listen to you ramble - about anything and everything

 

[Wysiwyg]

Here are my reservations;

- How would society view someone who is still reasonably young (early 40s) and quits his job to become a full-time investor? I do not view investing highly as a socially useful activity. Little useful stuff is created from the buying and selling of securities in the secondary market. I admit this sounds hypocritical given that I am harbouring thoughts of becoming a full-time investor.

It's all about getting money and if you operate within the rules then you are like every other person on the planet seeking money. Trading of goods, services and assets has been going on for thousands of years. Aside from that, one can only use the stuff while they are alive anyway so it's not like yours forever.

 

[Wysiwyg]

- How would society view someone who is still reasonably young (early 40s) and quits his job to become a full-time investor?

Society??? The majority of society are caught up in their own personal life dramas, the majority of society are too gutless to stand up against wrong doing, the majority of society are easily manipulated by words, the majority of society whinge about their circumstances and sabotage success. Within society people steal, lie, cheat and kill for money. When you refer to society you are talking about a hierarchy that determines how your life should be. Should a member of society come up to me and tell me how I should live my life I will punch them in the face. Puppets, the majority.

 

[tmhy]

Thank you very much for all the replies.

When I express these reservations to others, the most common reply was "You care too much about what people think about you." Guilty as charged. This is a weakness that cannot be avoided, at least by me. Humans are social creatures. It is impossible to totally ignore what others think. What full-time investors can do is to selectively care about who those others are. Immediate family comes to mind. It is also easier to win their support. A husband can be totally truthful to his wife about his past investment records. Show her all the numbers. If she is not supportive, the numbers may not be good enough. If she is supportive, this is a sign that the financial test is passed. It is not appropriate to show friends or colleagues your past investment records just to prove that you can do it and win their respect. I don't believe a person can win respect by showing off that he has achieved financial independence. It is the way he earns his money that determines whether he deserves the respect. An entrepreneur or engineer who creates products/services that improves the standard of living of others deserves respect. An investor who gets rich from the follies of others in the market deserves less respect because he just take advantage of the stupid but does not create much useful stuff in the process. No matter what, it is still an honest living.

I am an engineer. In the past 2 years, the time I need to spend as an investor has grown too much that I have to make a choice soon. Either continue as an engineer or fully convert to become a full-time investor. If I continue as an engineer, I see stagnant prospects ahead. What keeps me back is the "social pressure" and the self-disrespect that I feel as an investor. Of course, there is always a risk that I will earn far less or even go into the red as an investor. I have no doubt I will enjoy the work as an investor although I enjoy engineering work too.

For those who have become full-time investors, what considerations did you go through then? How was the transition period like and what were the challenges?

 

[willy1111]

Reading your posts, it sounds like you have a lot of work to do on your belief systems and ideas about money and society if you don't want to self sabotage yourself being a successful full time investor.

Nothing is good or bad, but thinking makes it so. Things only matter as much as the meaning you attach to them. Basically you get to choose the meaning you attach to it, so make it work for you, or don't...your choice.

There are many professionals that work in financial services like a professional fund manager, ie some one who works for Colonial or Magellan, etc are they of less stature in society than an engineer or accountant or whatever?

I believe that anyone who has managed their money in a way that allows them to take back their time and do as they please is extremely successful and deserves a lot of respect. They have put themselves in a position where their money works for them rather than them being a slave (40-60) hrs a week to money or their boss. With this abundance of free time and capital they can contribute back to society in so many ways if they wish. There are more ways to contribute than being an employee.

You could tell people that you are going into the funds management business, you've being doing it part time now you are ready to go full time. You are only working for a small group of wealthy clients(they don't need to know it is just you) and not taking on new clients. If it doesn't work out you can always go back to engineering.

I believe Kiyosaki's first 2 books Rich Dad Poor Dad and Cashflow Quandrant were brilliant at explaining the mindset behind society and the different categories from which money is generated, a fantastic educational tool for yourself and for you to teach your kids about the different roles in society and societies views towards money, etc.

 

[willy1111]

My observation is that a lot of employees are followers, they are like sheep, they like to be part of a group, they like to be told what to do and be given direction, they like a pat on the head and to be given positive reinforcement every now and then. This makes them feel like they are contributing and gives them a sense of significance.

Self employed people (businesd owners and investors) are self leaders, they generate their own motivation and back themselves, they run their own race, they don't need a pat on the head as they realise they are the patter, they are prepared to have a go and understand losing is part of winning, they are focused on what they want and will keep jumping hurdles regardless of how many times they fall until they get what they focused on.

I'm not saying one is better than the other, it is upto each individual to attach the meaning they wish to. But we all get to choose, or maybe our personality, values and beliefs choose for us.

They are different mindsets. I'd suggest educating yourself in the different values and philosophy of each category and the best book I have read that laid it out for me was Cashflow Quadrant.

 

[skc]

Lots of good discussions... here are my few dot points.
- I am a full time trader for almost 8 years now. I do admit that initially it was somewhat hard to tell people you are a trader/investor when you are still finding your own way in a new venture. You feel like you haven't live up to the self-proclaimed job title yet. Ask yourself if some of your thoughts come from not knowing whether you'd be successful....
- But this is no different to someone starting new in any field. On you first days as an engineer you were probably a lot less competent than you are today. But it certainly doesn't mean you should disrespect yourself.
- Value to society is a highly personal opinion. I know what I do is...1) Not harmful to anyone. 2). A cog in the financial system. Obviously take me out of the market and the world wouldn't miss a beat... but the same can be said about most jobs.
- Would you feel bad telling someone you work as a fund manager? What if you are full time managing your $300m family estate? What if you participate in a capital raising in one of your holdings so that the business can expand (create jobs, improve quality of life etc)? What if you extent yourself from investing in listed stocks to seed investments in a new life-saving drug? So the question is: do you fundamentally believe that being a "capital allocator" is useless / negative to the society?
- Lastly... why define yourself only in what you do to make money? There are so many other ways to be a valuable member of society. Donations, volunteering, community work, being a good father etc etc. I bet you that, if you do a lot of these, you won't feel the need to tell others in order to earn their respect.

 

[McLovin]

- Investing is a lonely activity. I operate alone. When I have a job, I still have a group of friends and colleagues to talk to. After I plunge into full-time investing, the loneliness is going to be acute.

It sounds like you're apprehensive about this. I think if you're someone who needs to be around people you need to really think about whether you can deal with working in what is a solitary pursuit. I've been a ft investor for almost 7 years (I have a few projects on the side that are not solitary but I'd say 70% of my time is solitary), I enjoy working on my own, but if you're a people person you're probably going to struggle with sitting at a desk all day and talking to yourself.

 

[OmegaTrader]

Howard made the comment that he wouldn't know what to do with more money and a flippant reply was Ill have it!

I was serious, it wasn't flippant.

I will have it!

still waiting for Howard to pm me though....

haha

This thread has really good advice

I have no advice as an amateur only simple rudimentary economic theory.


((Risk adjusted return-Passive return)*Capital)
--------------------------------------------------
Time Spent Trading per year

>

Salary of equivalent Time Spent

Then economically it is worth it.

Otherwise

stay in your current job; set up a small, say $20,000, trading account; buy and sell small but meaningful (say, $10,000 at risk at any given time) positions for a couple of years before committing to full time and fully funded.

In reference to society

Society??? The majority of society are caught up in their own personal life dramas, the majority of society are too gutless to stand up against wrong doing, the majority of society are easily manipulated by words, the majority of society whinge about their circumstances and sabotage success. Within society people steal, lie, cheat and kill for money. When you refer to society you are talking about a hierarchy that determines how your life should be. Should a member of society come up to me and tell me how I should live my life I will punch them in the face. Puppets, the majority.

+1

Spot on.
google cardinal george pell or goldman sachs GFC for more details...

my two cents

 

[hamli]

Tough... a lot of people who work a 9-5 job won't understand full-time 'investing' and the mental exertion you put into it. I did this for 6 months with over 50 trades per week and I'd always be asked the question, so when are you getting a job? I'd reply that I am 'working'... and the come back would always be ... when are you finding a real job?

Yes, a lot of people just don't understand.

 

[Garpal Gumnut]

Tough... a lot of people who work a 9-5 job won't understand full-time 'investing' and the mental exertion you put into it. I did this for 6 months with over 50 trades per week and I'd always be asked the question, so when are you getting a job? I'd reply that I am 'working'... and the come back would always be ... when are you finding a real job?

Yes, a lot of people just don't understand.

I would agree totally. Even if you work at a job that pays $15 an hour, that is $120 a day and $600 a week, more if you work weekends. $30,000 a year. You need to make tis to make trading worthwhile.
I have posted elsewhere here on a margin loan I took out some years ago. I think it was $40,000/$40,000 split. I made from memory $8000 gross and it was diluted by trading charges. On the upside I was able to claim access to paid trading sites which helped me with my SMSF.
Going solo trader is not easy, that is why there are as many books on it as how to find a partner or to be a good guy.
WayneL on this forum has good advice on options and if I were younger and going to leave a job to trade, I'd trade options.
Search for his comprehensive posts on options.

gg

 

[Bill M]

I retired early and I am a full time investor. I have been in this position for 15 years.

The first thing that stands out is that no one is around during the day, every week day that is. You need to get use to this. I like being alone so it suits me and I do not want nor need companionship of work mates. You have the time and ability to do anything you want and when you want and that to me is more important than working, peer pressure or what someone thinks. Who is their right mind wouldn't want that sort of freedom?

Then there are the friends or family that think you are rorting something to be able to do it. Comments like, oh yeah you're sitting around the computer all day and your missus works or you must have got a payout or won the lottery or ripping off Centerlink. All the accusations were not true. They just can't fathom in their pea brains that some people invest very well and make money they can live off. I had to tell my wife that if anybody asks just to tell them, Bill works from home on his PC. If they asked further I told her tell them I buy and sell shares. This isn't quite true, I am a long term investor but others can not understand this. They can however understand buying and selling shares.

People like myself are not normal people and I have never been normal. I never tell anybody of my investing skills mostly because they can not understand it or they think you are lying. So I just do my own thing, wear billabong t-shirts, shorts and thongs everyday and walk about like I am a nobody, I like this and nobody bothers me. If a friend wants to know anything about investing I perk up and tell them my opinion. I have only 1 friend that is like myself and I can talk for hours and days about investing. We meet up overseas at bars and talk for hours, he is a good mate. I look forward to catching up with him each year.

This forum is a good outlet too, I like to share my thoughts here too, that's if someone wants to know. I don't mind helping anybody out if they ask. But I am not a technical trading guru so my post count is a bit lower than others. There are some very intelligent people on ASF, it's up to you to seek out those that fit your style of investing/trading.

You mentioned your family. Mate, if you are providing for them by being a stay at home investor then you should be proud of yourself. I don't have any kids but if I did I would be teaching them all about finance. The earlier they know the better it is for them. Plus you would have more time at home with them for other activities, surely that's got to be a good thing.

Then there are some cultures that look differently at people who are stay at home investors. Some cultures think that if you have the ability to work you should, no matter how much money you have amassed. I say life is for enjoying, not for working when you already have enough. At the end of the day you should do what you want to do, it is your life after all. Good luck with what ever you chose to do, cheers.

 

[captain black]

Great post Bill, couldn't agree more, especially the bit below:

You have the time and ability to do anything you want and when you want and that to me is more important than working, peer pressure or what someone thinks. Who in their right mind wouldn't want that sort of freedom?

Spot on!

 

[craft]

Thank you very much for all the replies.

When I express these reservations to others, the most common reply was "You care too much about what people think about you." Guilty as charged. This is a weakness that cannot be avoided, at least by me. Humans are social creatures. It is impossible to totally ignore what others think. What full-time investors can do is to selectively care about who those others are. Immediate family comes to mind. It is also easier to win their support. A husband can be totally truthful to his wife about his past investment records. Show her all the numbers. If she is not supportive, the numbers may not be good enough. If she is supportive, this is a sign that the financial test is passed. It is not appropriate to show friends or colleagues your past investment records just to prove that you can do it and win their respect. I don't believe a person can win respect by showing off that he has achieved financial independence. It is the way he earns his money that determines whether he deserves the respect. An entrepreneur or engineer who creates products/services that improves the standard of living of others deserves respect. An investor who gets rich from the follies of others in the market deserves less respect because he just take advantage of the stupid but does not create much useful stuff in the process. No matter what, it is still an honest living.

I am an engineer. In the past 2 years, the time I need to spend as an investor has grown too much that I have to make a choice soon. Either continue as an engineer or fully convert to become a full-time investor. If I continue as an engineer, I see stagnant prospects ahead. What keeps me back is the "social pressure" and the self-disrespect that I feel as an investor. Of course, there is always a risk that I will earn far less or even go into the red as an investor. I have no doubt I will enjoy the work as an investor although I enjoy engineering work too.

For those who have become full-time investors, what considerations did you go through then? How was the transition period like and what were the challenges?

Tmhy


Thanks for a couple of interesting posts.


I’m not entirely convinced that your questions arise from thinking about becoming a full time investor, rather that thinking about becoming a full time investor arises because of the thinking.


If you have the financial means to become a full time investor you probably have the luxury of thinking about how you make a living and that is most likely a change from doing things from a financial imperative perspective that you may have done to date.


Life’s pretty straight forward, when you do what you do because you need to make a living and you haven’t really got much more time or energy to think about it any further. So long as it doesn’t obviously hurt anybody and is socially acceptable – you just get on with it and nearly everyone around you is the same. If you trade or Invest for financial survival you’re in the same boat, making a quid and that’s the end of the story – that is where I was when I firsts started full time so didn’t have the thought pattern you have when starting, but it came later.


It gets tougher psychologically (1st world problems, hey.) when you get the luxury of time and money to question what you do in life. Then you have options and you have to look in the mirror and answer if you are using your options and time wisely. Any hope of bearing the scrutiny of others opinions will be failed if you are not happy with yourself and the choices you make.


If you’re happy with your choices and you keep the loved ones around you in the loop so they can have informed opinions – I reckon you will have the respect you need. Mid 40’s you say – probably about time to show the ‘uninformed’ negative opinions of some, that may have impacted you at a younger age, the dust bin – a part of the joys of obtaining grumpy old status is easily dismissing the uninformed views of knockers.


Enjoy the journey .

 

[craft]

I am an engineer. In the past 2 years, the time I need to spend as an investor has grown too much that I have to make a choice soon. Either continue as an engineer or fully convert to become a full-time investor. If I continue as an engineer, I see stagnant prospects ahead. What keeps me back is the "social pressure" and the self-disrespect that I feel as an investor. Of course, there is always a risk that I will earn far less or even go into the red as an investor. I have no doubt I will enjoy the work as an investor although I enjoy engineering work too.

For those who have become full-time investors, what considerations did you go through then? How was the transition period like and what were the challenges?

Try inverting the concerns

With the resources at your disposal - can you justify your finite time, once in a lifetime experiences with your family and opportunity to pursue a passion for investing for something you see that has stagnant prospects because you see it currently as more socially acceptable?

I would say unequivocally, if you can afford it always follow your passion. And if you can't afford it passion is still probably the best guide though fear will legitimately be telling you the risks are higher.