When investing, I'm paid for taking on risk. Expected returns over time is positive. If outcomes are highly volatile, I expect higher returns over time. With gambling, outcome expected value is negative. I know I'm paying out with every hand played. I'm just hoping for some positive volatility before losing, because that's the entertainment part of it all.
This thread smacks of being another one of Baron's boy toys building hits on an innocuous heading ... Come on guys ....
RE: Another Cold, C-Kid, etc thread? Yep! Sure smells like one. I agree with you. A technology professional, working 20+ years in the field, can hardly get $100k/year in today's environment. A 26-year old making $250k/year - if this "making" means salary... I will be hard-pressed to believe it. Even corporate directors would not make that kind of salary. The only way to achieve it is through options, bonus or other incentives. But this is not 1999. Maybe Zimbawe dollars.
Just bank your salary for a few years, and afterwards if you want to be in the market, park some of it into some strong eligible dividend companies, and you'll be way ahead of most people, including most people on here. The reason why people think you are crazy is because they know the feeling of losing everything into thin air, and starting with a fraction of what you have. Look, 500k is usually a lofty target for most experienced people on here, not a starting point for a beginner awaiting the almost inevitable blowup initiation. I would take that 50K you made and segregate it off solely for your trading/gambling adventures where you'd be more in line with other beginners. Leave the rest out of it for now.
I'm not sure what's so hard to believe about a 26 yr old making $250k. Like I said, I work a lot of hours, avg almost 65 a week. Everyone I know at work makes at least $200k. It's not all salary. I get overtime, bonuses, etc. It's not like my base salary is 250. There are certainly a lot of people younger than me making a lot more out there. Anyway, I appreciate the comments and the PM's. I got a good laugh at the jokers on here. I started buying real estate when I was 20, got a couple good properties in a hot market that boomed, where I made most of the cash I have. I don't even have a million in cash and equity yet, getting really close, though. I should mention I drive a 1998 Altima with 150k miles. I don't care about material possessions...only money. I'm going to continue doing what I'm doing until something goes terribly wrong.
Perhaps next time you are at the casinos, it might be a wise move to leave the table while you are still in positive volatility. Then your outcome expected value wont be negative. Assuming you don't play rigged games like blackjack.
There are not Zimbabwe dollars anymore: In an effort to combat inflation and foster economic growth the Zimbabwean Dollar was suspended indefinitely on 12 April 2009.[108] Zimbabwe now allows trade in the United States Dollar and various other currencies such as the South African Rand, Euro, Sterling, and Botswana Pula. The use of the US Dollar yielded enormous results within weeks as inflation actually fell below zero to -3 percent. From: http://en.wikipedia.org/wiki/Zimbabwe#Hyperinflation_2003-2009 Still, good point