I don't think we should be dispensing personal advice to strangers. Best to change this discussion into an intellectual discourse among strange friends. In that context, (a) I know people who made making money their primary (even sole) objective. None of them are rich (yet). Otoh, I know people who are (already) rich and none of them made making money their primary objective. (b) Of the people I know or know of who are rich, none of them became rich from the stock market. They made their money from starting and building a business, or joining a business at the right time. In other words, most rich people became rich from stocks in their own company, not from stocks they pick off the street. Not to say you cannot make money by investing in stocks. But I submit it is very hard to become rich that way. As even the best investors like Buffet and Lynch will caution you, in the long run, it is tough to best the averages. You can make good returns on a compounded 7-10% a year. But unless you are already rich, you ain't gonna get rich that way.
Hey Alcc,
"Seems to me you should be investing in yourself (education, passion, profession etc.)"
I recently graduated college and have earned my degree with dean's honors. While I was in college, I tried everything: I was a Summer counselor for the underprivileged youth, established a new chapter for the Kappa Sigma Fraternity and was V.P., was a radio DJ for the University's station, was a Teaching Assistant, Student Government Senator and University Ambassador, started organizations such as the Skate Club (100+ members with professional sponsorship) and Chess Club, conducted research, studied abroad and was a foreign exchange conversation partner among other things. I had my fun and run with school. Although I may seek to continue my education and obtain a Master in Business Administration, currently the cost-benefit is still being weighed given circumstantial opportunities that may be afforded and possible to me in the near future. I also have a strong belief that too often, society as a whole believes structural means of learning through educational institutions is the only way to ensure a safe and reliable life or profession. There also exists too many professors whom indoctrinate students, which is just as disgusting...
Understanding the market is my passion. I love the laborious analysis required to asses equities, which may be suitable to invest in. Considering the market is not entirely perfect and is a reflection of perceived human perception and interaction only adds to my infatuation. The emotional management of psyche that I've learned through trading has made me forever grateful as well. Electronics? Gas? Banks? Gold? Corn? Soy beans? New drugs and cures? Fast food? If it's a public company it has issued securities! Awesome. Investing is great fun and is similar to the high I receive while painting.
"(a) I know people who made making money their primary (even sole) objective. None of them are rich (yet). Otoh, I know people who are (already) rich and none of them made making money their primary objective."
Making money is not my sole objective in life. I find fulfillment with time spent with family, friends, personal growth development, community involvement and attempting to be an asset to society... however, I understand the power of capital and its ability to alleviate problems, provide stability and create opportunities.
"(b) Of the people I know or know of who are rich, none of them became rich from the stock market. They made their money from starting and building a business, or joining a business at the right time."
Personal experience should not be held as the only and possible outcome. Nicholas Darvas, Jesse Livermore and Richard Dennis are just a few who come to mind that made a fortune through the market. But you're right in that, it would be foolish to make making money your only objective and stocks your only means of income. This is why I work, in order to have an inflow of stable cash. I also do plan on making other investments and attempting my hand in home-health services when I'm prepared enough with my uncle whom owns several sites across California.
I also agree, the power of geometric and exponential growth vs. linear is powerful and you're right becoming rich through the market is a difficult task. But it's a challenge I will gladly accept and I will position myself for the opportunity and continuously prepare and learn.
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Here's my last project that I have worked on and posted onto my FB:
"How bad do I want to become a great trader? After 23 consecutive days of strenuous research to find and send 400 handwritten and personalized letters to various successful traders across America. The postman was shocked when I gave him 3 boxes filled with stamped envelopes to mail.
The envelopes all contain one pen to use to fill out my short questionnaire (that also creates a lump in the letter to evoke intrigue to the hopefully curious receiver), one self addressed prepaid envelope (to increase the odds of a reply) and one post-it note attached onto the prepaid envelope to serve as a nudge and reminder to respond. The enclosed envelope is then sealed with a transparent plastic cover to serve as protection and differentiate my letter amongst various other potential letters received. Lastly, the back of the envelope contains a personalized sentence specific to the traders history, interest or philosophy.
Regardless of the response rate I receive - I have accomplished what I've wanted to become, which is a more knowledgeable trader. I researched 10-15 traders daily and read their personally history, trading techniques, philosophies and read their interviews. What I've learned is golden and to top it off today, despite the DOW and NASDAQ being down I made close to 2K. I just want to start off this year closer to my goal of becoming a better trader so this is why I created this self-exercise and system"
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Attachment DeletedEarly on I received responses daily. One trader returned my pen back, another has sent me a TA book to read and another, Joshua Brown aka the ReformedBroker (who has thousands of followers on StockTwits and Twitter and appears on CNBC) blogged about me (http://www.thereformedbroker.com/2014/01/14/letter-to-a-young-investor/) after responding.
But thank you for your guidance and what you say holds true... but I owe it to myself to try and try hard about something I'm passionate about and enjoy.
