I was going to write a long post about all the time I spent over the last 4 years learning about the economy, investing, and speculating. Then, comparing the annual returns from investing/speculating to selling my skills to employers.
I decided a better way was to directly compare my percentage income from each activity (net of expenses, before taxes).
Income from work: 98.6%
Income from investing/speculating: 1.4%
This became crystal clear to me late last year. The only way I could make a living as an investor is if I started with $100 million. I guess that qualifies me to run a hedge fund, but I'll stick with selling my marketable skills.
So very true, but as we know all "traders" have 100 million accounts plus never lose. :) Nice site.
ReplyDeleteEconomicDisconnect,
ReplyDeleteSome "traders" I know talk like that, but admit later it ain't so. This post was inspired by a friend who is in denial about his ability to make a living as a trader. I was trying not to hit him over the head with it.
If I came across wrong, I am sorry, thought your point was spot on.
ReplyDeleteEconomicDisconnect,
ReplyDeleteOh, no, you didn't come across wrong in any way. Your point was also spot on.
I've had an unusually good year so far with a flood of side consulting jobs. It really put an exclamation point on the difference between my income from work vs investing.
No worries. Takes money to make money. Big money. They dont tell you that on TV.
ReplyDeleteMoment of Zen
ReplyDeleteMost people would laugh if casinos offered us free "gambling" tools to help us make money.
So why is it that most people don't laugh when brokerages offer us free "trading" tools to help us make money?
Stagflationary Mark,
ReplyDeleteVery good observation. Is it because "finance" accounts for a huge portion of corporate profits? Frankly, I think casinos are running a more honest game. Sigh.