Posted on

What It Takes To Be In the 1%?

Who in their right mind would quit a six figure gig to pursue an advocation that only 1% of those that pursue it were successful?  Well, today marks the fourth anniversary of the day that I lost my mind. Yes, I miss the whining and dining of customers that I routinely did as a software salesperson.  As well as the sales conferences and golf outings.  That being said, I can count the number of Mondays I looked forward to in my corporate career. Now I can’t wait for Monday to come.

There were several articles floating around this weekend about day trading.  Henry Blodget, of internet bubble fame, said that day trading was the dumbest job ever.  He quoted research from a University Professor that stated

  • 80% of day traders in the study lost money (something that is very hard to do in a bull market)
  • Only 1% of day traders in the study were “predictably profitable.”

I don’t consider myself a day trader, but Blodget and the Professor would lump me into that bucket.   I am an active trader that earns my living by trading the market.  Am I “predictably profitable?”  What the hell does that mean?  The professor can predictably pick up his paycheck every week, because he has tenure.  That doesn’t exist in the real world.  A pink slip can arrive on your desk any day.

I have managed to maintain my same lifestyle over the past 4 years – as I did as a working stiff.  So, that is “predictably profitable” enough for me.  Statistics such as those above keep people stuck in cubicles and dreading Mondays.  Life is too short.  Pursue your passion – you may get lucky and find yourself in the one percent.

Note: The Time and Money Group is a “work in progress” founded by Michael K. Dawson to encourage people to pursue their dreams.  Its mantra is “Why trade time for money – when you can have both…”

Posted on

The Time & Money Group – Anniversary #3

istock_000004886744xsmallToday marks three years since I walked away from Corporate America to trade full-time and explore ways to encourage people to pursue their dreams of Financial Independence.  Not one day has passed where I have regretted my decision, but there have many days spent wondering how long can I keep this party going.

I had an idea of what I was getting into, since I started a Video production company many moons ago.  That venture folded after one year, but was quite a learning experience.  The one lesson that stands out the most is capital, capital, capital – you can never have enough of the stuff.

We are in the midst of the worst stock market since the 1930s.  I planned for a few rough spots, but come on.  My advice to all Financial Freedom seekers; figure out how much capital you need and then double it.  That has gotten me to year three – now I need a few breaks to make it to year four.

Posted on

The Time & Money Group – 2nd Anniversary

The farther the calendar moves away from 3/31/2006, the day I walked away from a 20 year career in Sales, Marketing and Engineering, the less I have to explain why I said good-bye to a 6-figure job to trade full-time on my own account. That’s good, because it was pretty hard to explain anyway. The job was rewarding. I worked with great people. So, what was the problem?

I was never cut out to work a job. I am an entrepreneur by nature. I love trying to make something happen. Risk and uncertainty are not scary to me. Now every day that I wake up – I am faced with these challenges.

Interestingly, when you migrate towards your true passion – the money follows. My lifestyle hasn’t changed one bit since I quit the 9 to 5. I haven’t missed a meal. We still have our house in the suburbs and drive nice cars. Our vacations have actually upgraded a little.

Interestingly there are now some people who have only known me as a financial guy. Most think that I am some kind of financial advisor. I still haven’t come up with a good quick way to explain what I do. A stock trading financial freedom advocate will have to do for now.

Posted on

Basket Trading with FOLIOfn

FOLIOfn is an innovative online broker that has been in business since 1988. Just like any other brokerage firm it is possible to trade securities in the standard manner, but their claim to fame is their unique FOLIO basket trading feature. This allows you to buy, modify and sell whole portfolios in a single transaction.

Do you have $10,000 that you would like to invest equally across 10 stocks? At the push of button, FOLIOfn will determine how many shares of each stock (including fractional shares) can be purchased. Simply push another button and the trade is executed. No need to enter and execute 10 individual trades. Not only does it save you time, but by not having to pay all of those individual commissions – it saves you money.

If you have read any of my previous articles, you know that I am a huge advocate of basket trading. The Big Build-Out (BBO), which has been my most successful portfolio over the last two years, is traded as a basket.

Continue reading “Basket Trading with FOLIOfn”