Making Money

[Swab]

Anyone want to talk about supplementing income or generating a retirement income?

I've dabbled in the market for years in stocks, options using covered calls, and even played in commodities. The problem is that I've not learned to do it in a way to generate a consistent positive return, until now.

I've spent the last few years and a few thousand $ learning how to trade in the market and be able to make money. This is a good thing because I don't think I'm going to have enough saved or invested in a 401k to retire in the traditional sense. Just as an example, I've done 3 option trades this week (called a Bear Call Spread) and when the market closes tomorrow the net return will be around $5k. Total invested is about $5k. There is more $ tied up because when you sell options as part of a spread play you have to have enough in your account to cover the cost of the stock in case you made the mistake of setting it up so you get called out and have to buy or sell the stock, so the broker put a hold on about $36k. Do that about once a month for an extra $50k to $60k. My total risk? About $5k.

I won't give my $ to an "advisor" because I've watched them sit on their hands as the market tanked and my wife lost 40% of her k.

I bring this up just for information. I'm not selling anything and I won't invest for you.

Care to discuss?

[Gabriel Suarez]

This will be like a discussion of which is best..blondes, redheads or brunettes. Or better yet...a discussion of the validity of faiths other than your particular one.

Mine...there is no easy way or quick solution. It takes a lifetime of devotion to excellence and playing by your own rules. The system is set up to make you fail. Learn to circumvent it. Some guys get lucky...pull an idea out of the air and make millions. If that's you, great...but that doesn't happen very often.

Oh, and the holy guys that hate evil money...ignore them for they know not what they say.

[Gabriel Suarez]

And yes...I pay a financial planner to help me read the maps, just as I pay a doctor to give me verification on health, and an accountant to keep Caesar at bay. They are all pirates like me.

[mike135]

I think financial planners/advisers have their place--they are good for planning, dealing with risk, etc. but I'd never trust one to manage my money actively. If they are good enough to be trusted they are running a hedge fund already. All the performance stats support that conclusion.

I think it's very possible to do well on your own, but it takes a lot of discipline and education. For most, emotions get in the way and that's why they need professionals to do it for them.

[Swab]

I equate what I've done with buy the best you can afford, cry once. Get the right information and succeed more often than fail.

[Ryan Taylor]

57047

You dont have to be an expert on everything, just surround yourself in them, and pay for their advice since its usually worth every penny.

401k and IRAs were set up to keep those who are incapable of any form of entrepeneurship and financial competence from draining the system when their old and tired.

Doing what you are doing now (investing in yourself by paying others to teach you how the stock exchange works) is something you should have done probably a long time ago. But like most, you probably had to figure that out yourself since your folks couldnt teach you. Good on you for that.

Education is expensive, but its far more expensive without it.

[chad newton]

Just plan on working forever, with that thought in mind you will be better off. I don’t think I could ever sit around on the porch anyways.:)

[ZeroTA]

401k and IRAs were set up to keep those who are incapable of any form of entrepeneurship and financial competence from draining the system when their old and tired.


Education is expensive, but its far more expensive without it.

Roth IRA’s are great if you can absorb the tax hit now. Saves you a lot down the road. My wife and I just get long term set-it-and-forget-it mutual funds. I consider those my true retirement funds.

As far as education being expensive, I’ve done fairly well in other stocks but that may be more because of the long bull run than any savvy on my part. I actually made more in trades this year than my Roths earned. On the flip side, I'm certain I could’ve made a lot more at first if I knew what I was doing from the start.

[Ryan Taylor]

Thats what I meant by education being more expensive without it than with it. The money you spend on expert instruction pays itself off very quickly when considered all the money you COULD HAVE MADE had you known then what you know now.

[reforger2002]

I tried making home made money once - US Treasury was not amused!

psst no actual attempt to make money was ever attempted