http://elitetrader.com/vb/showthread.php?s=&threadid=48836 LOL. Looks like you've come along way from being a "newbie" in 2003 and just turning profitable in 2004. How were you able to find the time to make all that money from 2005-2007 and still jetset aroung the world bedding a different woman every 2-3 days? LMAO, this stuff is priceless. You should go to one of those virtual world role playing websites. Maybe you can give yourself a 16 inch cock too. BUSTED.
I've been following this thread for a while, and have to say that I agree with this post more than any other. There are spenders, and there are savers. Typically, the spenders are less likely to be great traders for many reasons: 1) They never accumulated the assets needed to enable them to 'take the risk' and attempt trading. 2) If they were able to attempt trading, they vastly increased their likelihood of 'blowing out' as they spend much of their profits, leaving less to fall back on during difficult times. 3) With an expensive lifestyle, their level of trading size and/or capital could not increase as quickly as their saving conterparts. Therefore, the savers would ultimately be swinging much larger trading size and generating much greater profits than their spending counterparts. A spender that makes $150k in a year will likely have little of it left, after taxes and spending, enabling them to (hopefully) make $150k the following year. The saver will still have almost half of their profits compounding in their accounts, enabling them to make $225k in the profit the next year. Over time, they will be making many multiples of the income that the spenders will make (not to mention reducing their 'blow out' risk). As I believe Red Ink pointed out, there is a time for saving and a time for spending. If a trader has accumulated sufficient profits to comfortably retire and never work another day in his life, then he can begin spending his assets (maybe ~5% per year of total), without concern about future needs. Until then, I believe traders should live well below their means, and accumulate capital - remember, traders don't usually have an employer funded pension or health care plan - you gotta look out for yourself, as no one else will or should. My best advice on spending, is that a trader should spend money upon that assumption that he'll never make another dime with his trading (and may actually lose ~50% of what he has). If you spend this conservatively, then you'll certainly live like a king when the time is right, but will not blow your cash needlessly and regret it when the dark clouds appear for several years at a time.
In a stumbling inarticulate way you have it right. In my parlance its called "sovereignty". What I admire about some of the traders on ET is their complete sovereignty with some of them posting from exotic locations where they only live part of the year etc. Those guys give me ideas. I've had tons of exotic travel but all of it was on company business. I've rarely been able to make a sovereign decision regarding my location in my adult life. I have had to go where the work is. Therefore I am a slave, no? My trading dream has more to do with freedom than massive wealth accumulation.
and after you drink that goat milk..you suddently, unexplicably start saying......meh-h-h-h-h-, meh-h-h-h-h....
Personally I would rather click on this thread than another ANEK vs. ALEX pissing match by paper trading mooks!
You have to understand what he is telling you. The picture in your head is of a guy making expensive trips and bedding down with some debutantes. The real story is that he is talking about living in a third world country and bedding down with cheap prostitutes. Round-trip airfare to Colombia from JFK=$500 Rent of an apartment in Colombia= few hundred a month Price of the ladies= 50-100 bucks a night negotiated
RFT, You just changed my opinion of you. Aside - Having read Reminisinces when I was 18, one of the things that I have thought about from time to time is what to do with it, after you have it. At the time, the (fictional) Livermore bought annuities to guarantee an income stream. In my mind, here is the progression: 1. Trading capital 2. Reserve capital, conservatively invested. A component of 'emergency' capital also goes here. 3. Income producing capital With account #1 certainly at least $100,000 and account #2 optimally at least $900,000 to give the proverbial 5% return on bank deposits/cd's whatever to give yourself a $45,000 income annually. Now you can trade without fear of placing yourself back in penury & drawing down your capital. #3 is more problematic as much of this is 'buying an income' through rental & commercial real estate, etc... But if you get to this point (another $500,000 should get you about $5000/month income, less mortgage payments for return of $30,000 annually) you're pretty much made, it seems. So, assuming $100,000 risk account, $900,000 reserve capital (may be accessed to trade if warranted, but not consistently), $500,000 in income producing real estate; add a paid off home or apartment for $250,000, college funds for the kids ($250,000) and life insurance for them and the spouse ($500,000 cash value policy, funded aggressively - $100,000) you're looking at $2.1 mio USD before you're in a position to start spending with abandon. Even assuming your $100K account is earning a 300% return of $300K - it should therefore take you 7 flawless years to reach this equilibrium state. You can tell who here has gone through this difficult experience and doesn't care to live large.