< ... as you say a "low 6 figure income", and have a family, house, etc. I'll bet you need $50,000/year in living expenses. >
I think one assumption you're making is that one lives at their income level which is not always the case. Personally I didn't deprive myself of things but managed to live well below my income level when I had my corporate job. And these days I couldn't spend $50K a year if my life depended on it.
< the mortgage company won't wait until the end of the year for their money. >
Again, you're assuming that one has a mortgage in your scenario which will increase the required trading profits. But lots of people have houses paid off.
< re: expenses ... as I beleive that you get what you pay for. $4200 for quotes. >
I don't pay anything for Level II and if one trades frequently enough at any direct access broker there is no monthly cost.
< our mythical trader who tripled his money really only increased his trading capital by $7,800, a paltry 15.8% return >
With the assumptions you made the above is correct. But throw out the quotes, mortgage and $50K cost of living and the rate of return could be much higher.
< Are we to expect every year to be like the past one? >
Personally I don't care if the market goes up 50% or down 50%, as long as there is volatility there is plenty of opportunity to make money. Not sure if you play the short side but if not you're really limiting yourself.
< 50,000 just isn't enough. Anyone who thinks so is suffering from a dillusion >
Although you're entitled to your opinion the above couldn't be more wrong. I know people who started with $50K and have done quite well. But, as I implied above, they do not have the expenses that your scenario lays out.
One thing I have trading full time is freedom. I don't have to trade all day. I can take days off whenever I choose. And I sure as heck would never go back to a corporate job and give all of that up.
Dave |
