ok see above for the 70 lol... you don't have to lose millions when you are 70 (again, just a number lol).... e.g. I am 51... already all set... so if now I decide to put $100k to some absurd thing like day trading, this wouldn't affect my quality of life going forward....
It’s not so much that you are taking huge risks as 70 but that you are not tak8ng them when you are 25 is the point I think he is trying to make.
I used to think like you suggest, did it help, sure! but boy am I glad that I am now living for the NOW and not for when I'm old and decrepit.
It’s not an exact science and may be different for everyone as life throws us our fair share of curve balls. But the logic makes sense at least for me and looking back which is always easy lol.
we are actually on the same page. expected reward = payoff * probability of success.... so in your friend's case, the expected reward is higher than climbing the ladder, he sure should go for it. notice I used 'independent consulting' in the first post, a venture actually perceived as 'risky' by many permanent employees.... but in this case, for many skilled workers the expected reward can be far higher than being an employee, hence that move also makes sense.
Ah ... I see. Proper position sizing will save the 70 years old from disaster. But if you put $100k at risk and this amount is small enough that it will not affect your quality of life going forward, that's not taking big risks anyway. Big risks to me means risking most of your networth.
that's legit... and I am not advocating living miserably when you are young.... it's very simple... you have income, you have expense..... maximize the income when you are young, minimize the expense only to the point of not sacrificing quality of life, then let the residual work for you in the most efficient way (instead of YOLO on stupid ventures).
I took your advice all the way, living like a miser saving everything and going all in on ETF's. At 30 I said that's it enough. Time to take real risk I am to achieve something with my life. I had a good job too but just could not see myself doing what you propose and what I thought was the proper way any longer.
Yes! That's why trading education outfits, including prop firms, are so controversial. They entice young people with "easy" money and if they fail, they are left with no transferable skills. So in this sense, I do agree with @dozu888
a couple of points - the size of the risk is a perspective thing... like $100k for me or you maybe not much, but for the guy scraping together $25k to start daytrading, $100k sounds like a big number... to expand this concept a little bit.... in some situation you may have to risk it all lol.... say you want to try sky diving at some point of your life.... should you do it when you are 25, or when you are 70..... to me the answer is a no brainer lol.