For many types of traders, this is indeed a very good comparison. There's a lot of work involved in many types of trading, and it's sometimes not size-scalable at all. If you're Warren Buffett or just a long-term stock picker in very liquid issues, then it might be easy to take on other peoples' funds. But otherwise, it could involve a lot of work and just end up being yet another tax on your free time.
Only your accountant and the tax man should know. And bimbos when you are travelling away from home, who you are trying to talk into bed for a night. For everyone else, just say you are "doing alright, can't complain". Especially the wife, you never know when your marriage might fail, and it's nice to know she is into you for yourself not your wallet. Don't invest for people who don't understand markets, they are a fucking nightmare. Another key point - if you are worth 7-8 figures then you should stop thinking about making lots of money, and focus 80% on preservation of capital. The number of self-made millionaires who go broke or back to middle class is very high. The way they lose it is normally similar, a few main causes: 1. Investment losses. Do not invest in any direct business schemes. They are a lottery, and when they go wrong, which they usually do, you lose 100%. You also get loads of BS and drama when a business goes bust, and sometimes legal problems. No investment is worth getting audited and maybe prosecuted because some other asshole broke the law to try and stop his business failing. 2. Divorce. Unless you got a prenup, you gotta accept you might lose half your assets and your house if you or your wife fuck up. Stay away from those bimbos and sexy secretaries. 3. Lawsuits. Take out gold-plated legal cover. Do business and active trading through a limited liability private company, so if some market disaster hits, or you get sued, you don't lose everything. 4. Addiction. Stay away from drugs, gambling, excessive boozing, promiscuity etc. If you can't, set up a trust and get a trusted person to only give you a limited stipend until your addiction is fixed. 5. Excessive spending. Mike Tyson made almost 1 bill and went broke. Common sense, spend less than you earn. If it flies or floats, rent it. 6. Medical bills. Get a gold-plated policy and keep it up. 7. Hacking/theft etc. Another reason to keep quiet about $$$> 8. Tax problems. Always be conservative in tax reporting, and keep up to date, with a top accountant. 9. Debt. Avoid it, except a low balance credit card to keep up your credit rating, and conservative mortgages on investment property if it makes sense and the value of the real estate is cheap. You sound like you are fairly sensible, but I can imagine you getting hosed by investing in direct businesses, or getting sued if you are unlucky.
I like your list. I think i need to print this and put it on a wall somewhere for reference. Good stuff
Because we live in nation full of finger pointers. Everyone is your friend when you make them money and want to lynch you when you have a draw down. Sorry but that's the truth for most.
Where did you get this notion? Only ET noobs with hopeful "stars in their eyes" or unscrupulous snake oil promoters would ever consider such a thing. Most ETers doubt the veracity of making 1-2 ES points per day, let alone "500-1,000%".
I do alright (although not from swing trading). My in-laws know how much I make (mother-in-law is reaaaallyyy sharp). Most of my friends also have a pretty good idea. I really haven't had any issues. I've been approached a few times for help, and the answer is always simple: - I don't do loans to friends/family. Period. If you need money, it will only be as a "gift"... so tell me what your need is. I'm not embarrassed to say no... I'm also not going to hold it over your head at BBQs for the next 15 years. It's a gift, period. - I don't make any decisions on the spot. "Let me think about it." Every time you call or ask, I put off a decision by a week (or a month). It's really that simple. I don't make any exceptions, and I'm very consistent with these principles. I think you only get yourself in trouble if your friends/family start thinking that you're playing favorites with your "favors". PS. If you know someone who really needs to borrow money and you're inclined to help them... look into something like Prosper.com. They can put up a loan request, and you can lend that way. This way, loan servicing isn't controlled by you... but rather by an independent 3rd party. If they don't pay, it's the independent 3rd party that reports them to collections.