I thought I’d take a moment and talk about why I give thanks every day that I’m a a stock trader.
My Typical “Work” Week
On average, I trade about 4 days a week. When I trade, I actively watch the markets for about 4.5 hours, and set alerts to pull me back in if something comes up later. You can see from my video on my nightly trade prep that I spend maybe a half-hour each night on preparations. So, that adds up to 20 hours of dedicated work I put into trading per week. At my old job, it wasn’t unusual to do 20 hours of overtime most weeks, on top of the normal 40 hours. And, since a lot of my “work” hours are basically just waiting for opportunities to arise, I have a lot of freedom to multitask. Because of this flexibility, and the fact that I work at home, I can:
- Shop when there’s no traffic to fight
- Sleep in when I’m tired
- Go for a walk, or go swimming when the weather’s nice
- Cook healthy meals while I “work”
- Do laundry while I “work”
- Wash dishes while I “work”
- Vacuum while I “work”
- Exercise while I “work”
- tons more, but you get the idea…
Those entries about house chores may sound unremarkable, but think about it. It means that when I’m done for the day, I’m really done. It means my free time is really free. When I was working 60 hours a week, I let my apartment, and my health, go to hell. I didn’t want to spend the last half hour I had to myself cleaning up or cooking.
And, I used to commute about a half hour each way to work. That was an additional 5 or 6 hours a week of driving on top of my work hours (when there were no wrecks blocking lanes). It’s money I don’t have to spend on gas, and wear and tear I’m not putting on my car. Fantastic!
Plus, the time I spent actively paying attention to trading is very mentally engaging. It’s a constant challenge, and putting your money on the line is never a dull experience. I get to constantly learn new trading ideas, as I go head-to-head with the best and brightest traders in the world (and, thankfully, the dumbest, as well).
The Free Time
So, I just sit around staring at the television when I’m not trading, right? Well, I certainly could, but one of the reasons I couldn’t stand working 60 hours a week at my old job was that I have too many hobbies that I couldn’t pursue. I recognize what a gift it is to have this time available, and I try to use it to its fullest. Some things I’ve had time to do are:
- Write this website, and other blogs. I like to write, and share what I’ve learned with others.
- Put a real focus on finding my own inner peace and stability. I don’t mind saying that getting divorced and getting near 30 years old were really messing with my head. I’ve had time to read a bit of philosophy and practice meditation, and just generally take the time to really think about stuff
- Contribute code and ideas to StockTickr. Check it out, if you haven’t!
- Play Guitars. I still can’t play like I could in college, though. How sad…
- Start learning to play piano.
- Start learning french, and reading about auxiliary constructed languages like Ido and Novial
- Keep up to date on computer science and math topics I enjoy, primarily in the areas of programming language theory, and abstract algebra
- and much much more
Worst Case Scenario
This is my favorite part! Sometimes people I know ask what happens if I wipe out my account. With the kind of risk management I employ, that’d be a statistically difficult thing to do. But, lets ask a more relevant question: Currently I barely cover my living expenses, and sometimes I don’t cover them. After last week’s bad losses, it looks like October will be one of those doesn’t cover expenses months. So, what if I can’t improve on that, and slowly eat away my account? I would call that the worst case scenario. Let’s look at it:
I’ve been at this for 7 months now. Outside my trading account, I have about a year’s worth of living expenses sitting in risk-free savings. So, in the worst case imaginable, I will seek full time employment in the computer science realm, after a year and seven months of the paradise I’ve just described. Wow! Since I actually enjoy computer science work, that’s not a bad deal at all. After another year, it might even be a nice change of pace! And that’s the worst case scenario! How amazing is that?!
My parents told me a story last year, of a couple they know. These people worked hard up until retirement age. The saved tons of money. They bought a dream house to retire in, and rented it to someone else to bring in more cash while they continued to work. Then, right before the time came to retire and enjoy the wealth and amenities they had amassed, the husband became ill. He didn’t die, but he can’t really enjoy things like he probably imagined he could. For instance, he lives on a golf course but can no longer play golf. I bet he regrets every game he passed up because he wanted to work through the weekend.
So, I say, in the worst case imaginable, I will have had almost two years of retirement at 29, in the prime of my life. That’s an age where I can really enjoy it. But, don’t count me out, just because I’ve thought through the failure case! I think I am on track to “make it” in this game…
Isn’t There Anything You Don’t Like??
Um… nope.
Oh, Come On…
Ok, there is one thing annoying me about this lifestyle. Working by myself, from my home… well, I don’t immediately see how I’m going to meet the girl of my dreams this way. And, I would really like to meet her. Any female readers out there want to fix this problem for me? :-)
I’m trying to figure this part out. I have a general aversion to on-line dating services. Doesn’t seem very natural, plus when I did break down and sign up with eHarmony they actually refused me service! ouch! I had no idea they would do that. Someone suggested later it’s because I’m not religious. I wish they had told me that up front, before I wasted time filling out their personality profile.
I could use my free time to do some sort of social activities, maybe… take some classes, or something? I dunno. The kinds of hobbies I like are generally solitary ones. I read. I program computers. etc…
So, If The Stock Trading Life Appeals To You…
Then, do it! Map out your own worst-case scenario, and see if it doesn’t sound at least a little fantastic. Going into trading is a little daunting, just like starting any other business. But, it is also extremely rewarding. Just don’t imagine getting rich in two years (even though there’s always a chance). Instead, imagine how rich your life will be, immediately!
It’s also one of the easiest businesses to get into and out of. To get into it, open a big trading account, and establish things like health insurance for yourself. To get out, simply transfer your trading balance back into savings or whatever, and move on. Compare that to getting in and out of, say, the restaurant business. Or real-estate. Ick! A trader’s life for me!
October 26th, 2006 at 11:43 pm
Richard,
I am just curious if the months you cover your living expenses is also including the tax that you will have to pay on your capital gains? I don’t live in the US (Canada) so I don’t know your tax laws (as if I even know my own). Do you just pay capital gains tax, or since you trade full-time, do you actually have to pay income tax on any profits? I am just wondering if you are at the level where your after tax trading is covering your living expenses, as that to me would be the ultimate goal… Great post by the way. Thanks.
October 27th, 2006 at 2:39 am
I’ve been trading off and on for about 2 years and full time since February. I read all the popular blogs and owe a lot of my trading style to all the great bloogers and even people who comment on these blogs. Every once in a while I come across a post that so accurately describes daytrading (both good and bad). Your latest post is one of them. I will read it at least once a month to not only reassure me of my decision to get into trading full time but to also remind myself of all the things I can be doing in my freetime. I’m an expat living in Paris right now (for about 3 years) and I start my trading day at 3:30pm. My goal in the 3 years I’m in Paris is to set myself up for my return to the US. The fact that I can get out of all my trades by noon (EST) and make 3 times more than what I would’ve made is all the motivation I need. My other goal behind all the work I’ve done researching and studying charts is to share it with others… like my family and close friends. I truly feel like I’ve been through it all (from a trading standpoint) and I can accurately give them a good starting point. My only regret is not coming across these blogs early in my trading career… it would’ve saved me so much money.
Thanks for the blog… and thanks for the latest post. I hope everyone reads it and does exactly what I’m going to do right now - study more charts!!!!
October 27th, 2006 at 2:50 am
Hi Richard,
Meeting people (girls) advice:
I’m married now, but I always found the best way to meet people was through work (I’m a teacher) or school. Since neither of those are an option for you, I’d suggest taking classes in things that interest you — French, yoga, tai chi, guitar, etc… Anything that gets you in contact with other people who share similar interests. I’m from Mass and I’ve taken courses at local colleges in the evenings and classes at the Boston Center for Adult Education.
Alternatively, you might try speed dating, kind of like blind dates on steroids. You probably know about this already, but it seems like a good way to meet people, though I’ve never tried it. I think it’s a better idea than a dating agency.
Good luck to you!
October 27th, 2006 at 5:17 am
shop, cook, clean, vacuum…did hazel fill in today :-)
October 27th, 2006 at 6:11 am
Richard,
I met the girl I’m living with through Lavalife. After checking out eHarmony and a bunch of other places, I found that Lava was the best (and the cheapest!), if only because it has the most number of people and you can tailor your ad to exclude all but what you’re interested in.
Don’t know what happened with eHarmony, though. I’m a hard core atheist in a very secular town and I had no problems, but trust me you aren’t missing much. All of the girls on eHarmony were also on Lavalife and there were big problems with how the system worked. Bleh.
For me, the one down side to trading is the solitude. I don’t mind it as much as some might, but I do miss collaborating and dreaming up ideas with a couple of smart people. Without the g/f, I might go a bit funny :)
October 27th, 2006 at 6:13 am
The best place to meet girls is at the grocery store during the “normal” 8-5 work hours. I cannot promise they will all be single…
October 27th, 2006 at 6:16 am
@Brad: I actually did try speed dating once. It wasn’t bad, but it wasn’t overly good, either. May do it again, but I prefer the taking clasess route, because then at least I get something out if it even if I’m not interested in anyone there.
@John: lol yeah, that’s what I get for having the help write my blog for me.
October 27th, 2006 at 6:19 am
@Trader-X: I mostly see stay-at-home wives and their kids. Maybe I should go to another neighborhood…
October 27th, 2006 at 6:29 am
@em: if you want to share your charts on a blog, you can do that here.
@nathan: in the eyes of the IRS (US tax agency) I am a stock trader as of this year. So, I subtract my losses from my gains, and pay taxes on that. And yes, I take taxes into account when I say whether I have covered expenses or not. Otherwise I’d be fooling myself.
@tyro: I will check it out. Ha ha! Great, I was really happy with the religion explanation… now I know that eHarmony thinks rejected me on a deeper level! When they reject you, they still give you their personality profile results, and mine looked reasonably accurate to me… so it didn’t look like I had accidentally picked “psychotic farm animal mutilator” or anything.
October 27th, 2006 at 7:30 am
richard: lol on the psychotic farm animal mutilator profile
October 27th, 2006 at 9:14 am
Hi Richard,
Great post! Exactly what is going thru my mind too. I like the flexibility of being able to run errands & do shopping as & when I want; do yoga; do some nice cooking; read books; blogging; etc And when you are doing something you like (like trading), you don’t have to work another day! Its become your passion, not another job anymore :)
As you rightly pointed out, the flip side is working by yourself. I do miss the lunch & gossips with my colleagues, but I guess I can live with that.
And yes, what’s the worst that can happen? Go back to work! I just don’t want to look back a few years later & regret not trying
October 27th, 2006 at 9:48 am
check out http://www.yesnomayb.ca/ it is new. It has a US section.
October 27th, 2006 at 9:56 am
Another thing is to post your and girls will find you when reading your blog!
October 27th, 2006 at 9:57 am
*Correction*
Another thing is to post your picture in the About Richard section and girls will find you when reading your blog!
October 27th, 2006 at 10:03 am
@Teresa: I guess I’d need an about richard section, first! I have the lead role in my videos, so people can see me that way right now.
October 27th, 2006 at 10:17 am
I am in a similar situation, similar age, similar work, etc. I suggest getting a dog. Gives you one more thing to do while you are waiting for setups and more importantly companionship. Further, you might meet someone at the dog park or on the street walking the fellow.
October 27th, 2006 at 10:21 am
@Illin: I’m pretty sure my cats would tear a new dog to pieces! :-)
i have thought about trying to walk my cats. Not necessarily to pick up women, but just because it sounds amusing. I’ve heard some cats will do it. I don’t think mine would like the leash/harness/whatever.
October 27th, 2006 at 11:01 am
Hi Richard,
great post - it is exactly how I feel about trading - enjoy life while you can. I wish you the best of luck. I am a loner too - even working with people wore me down. My life is 100% better as a trader.
I agree with Brad - taking classes is a good way to meet girls. But the best way is friends of friends. So if you get more friends (friends who have friends who are women), then you have a better chance of meeting women.
Good luck, dawg.
October 27th, 2006 at 12:06 pm
I would think that any dude that has his laundry, cooking and dishes done buy 5 would be a chick magnet!
If I ever do trade full-time, you can bet I won’t let my wife see this article. I don’t want to give her any crazy ideas about domesticating me . . .
October 27th, 2006 at 12:11 pm
@Ugly: thanks. Yeah, I need better friends, I guess.
@themarketspeculator: that’s what I think, too… I would be ideal for just about anyone. :-)
October 27th, 2006 at 12:58 pm
Uhhh, maybe this is a bit obvious, but you could try going out to some bars or clubs. About 95% of the women there are looking for a man - they just may not be internet dating types. As popular as online dating is, the majority of people do not use it. Since you are a trader you should know how to handle losses (rejections) without letting it affect your psyche too much.
I will say though, Internet dating works pretty well too. It has been a few years since I tried it but there is no shortage of attractive, intelligent women on quite a few sites.
Good luck.
Chabah
October 27th, 2006 at 1:07 pm
@Chabah: bars and clubs are not my thing anymore, really. I go to bars with friends on rare occassions, but the overall mission isn’t to find women to play with, those nights.
People keep telling me internet dating works well, but it hasn’t for me, as of yet. I have not given up hope on it. I have two pretty specific criteria. 1) Atheist 2) Doesn’t want children. That pretty much screens out the majority of the Texas population. :-) But, it’s what I want, so… I could maybe give on the atheism part, but I won’t be joining any organized religions, ever. In my failed marriage, religious differences were one of the problems.
Wow, I really didn’t expect the part about not meeting people to date to be the focus. I was trying to write an article about what is so great about trading! But I like all the comments, regardless.
October 27th, 2006 at 1:13 pm
I like Trader-X’s gro-sto idea, but with a twist to filter out the MILF’s: start going to a gro-sto in an expensive part of town where nannies/assistants are doing all the grocery getting. On a less cynical note, I used Yahoo personals and met my wife on there. I gave her a free “wink” and joined when she winked back. It’s been 3 years now.
October 27th, 2006 at 2:32 pm
Richard,
When I lived in Toronto I used to take the cats out for walks all the time. Girls would stop me at the bus stop or in the grocery store and say “hey, you’re the guy that walks the cats!” Talk about taking making it easy to meet chicks!
October 27th, 2006 at 5:28 pm
hello richard
good post , keep your dream alive , it is what you have the most precious , and at 30 years old it is wonderful
yes life is too short , if you are single and no kids , you can live your dreams , and you will find the girl of your life
i met my wife ore than 30 years ago and still love her like the first day , we did so many things together …..and she survived two cancers
yes i am 57 years old and still have dreams
i realized some , the first one was to emigrate to the u s a , i did it , the second one was to live under the sun and close to the beach , i did it
i still have a dream , i wanted to become a mechanic , i love big engines , like truck engine , but i think that nobody would hire a rookie mechanic who is close to 60 years old …lately i discovered the stock market , and i got very interested and now i dream that i could be a part time trader , i do not dream of getting rich , but it would fit my life style .right now i have the chance of working in an office where i can spend a lot of time in front of a computer , but unfortunately , i do not have any method or trading plan , i whish someone could teach me …..but i do not want to waste my money with trader who want to sell me a course or stuff like that . it seems to me that they want to make money selling their course because they have figured out that they can make more money than with their trading business , ok i would not mind to buy a book , but there are enough free stuff in the internet …..but i still do not know where and how to apply it
why part time ??? well just because it is my style , i live in a double wide mobile home in a beautiful parc , i drive a geo metro that is paid , i do not have a cellular phone , just a flat screen tv with the basic cable , and an dish antenna to pick up a french channel ( yes i am french , nobody can be perfect )
i am like you atheist and i like a simple life ….i do have a son of your age , i bought him a mobile home also and he lives across the street , i enjoyed my two grand daughters that cross the street to say hello to grand pa .
i have nothing to teach you , specally not on the stock market , or computer , i am just proud that i passed my g e d in the u s a .
but i can tell you that time passes very fast and if you have a dream try to do it
right now , i am making more money as a salesman sitting in front of a computer than a mechanic , then when you are my age , i am afraid that my health one day will not fit with my dream of beeing a mechanic ….so maybe beeing a part time trader will fulfill a dream ….if i can understand where to start .right now i win as much as i loose , that does not leave too much money at the end of the year …..
but the more important is to live your dream …your are almost there ….keep going
THIERRY
October 27th, 2006 at 5:51 pm
Richard and Tyro (fellow “hardcore” Atheist’s:
Since this thread has gotten completely off of the topic of trading, I thought I would forward you these links. Richard Dawkins is a British evolutionary biologist who is described as the world’s most famous Atheist, and is considered by some one of the greatest minds of our time. Check out this tv special he did if you have not seen it before (and his book “The God Delusion”).
Part 1:
http://www.youtube.com/watch?v=CQ8_bIji7gQ
Part 2:
http://www.youtube.com/watch?v=o4xIi-TwY-Y
October 27th, 2006 at 6:18 pm
Here’s another plan, Richard. You can always dazzle a girl with your brilliance. It worked with me.
For example, what girl wouldn’t be impressed when serenaded with the Taylor Effect and Empirical Scaling Law? Or be turned on by a command of Asymmetric Power ARCH?
That’s how he won me.
October 27th, 2006 at 6:36 pm
@Teresa: sounds like a plan. I will try to turn up the brilliance until someone is impressed. :-)
So, to put everyone’s advice together…
I should look around online dating sites to see which areas of my city have the most eligible women. Then, I should hang out near their supermarkets, walking my cats seductively. Once someone takes the bait, I should serenade them with articles I’ve written with aesthetically pleasing graphs and formulas. Then, before the glow of that wears off, find a natural place to mention that I cook and clean during market hours.
October 27th, 2006 at 9:52 pm
Sounds like you’ve got a plan in the making.
There is one more thing: search engines will bring you women too, so be sure to blog about a variety of subjects.
In my case, Google kept sending me to his blog during searches over the past two years. I kid you not. Then one day, we connected when I left a comment, and the rest is history. :)
All it takes is one good person. It will work out somehow. Hang in there.
October 28th, 2006 at 7:10 am
Richard - what a great post! Congrats on living your dream while you’re still limber enough to bend over and pick up the milk lid. I’m divorced w/ 3 kids, and have to keep the full-time job as I transition into trading over a period of years, since security (and health insurance!) for my daughters must take precedence. But the freedom and autonomy you describe resonated strongly for many of us, and is truly at the core of our trading dream.
Of course you know I’ve gotta put in my two pennies on relationships. I was sprung onto the dating scene after 17 YEARS of monogamy with one woman. I’m a fast learner, but damn did I have a lot to learn! Scars all over the place. I’m no expert, but I’ve learned this: let me suggest that you filter your dating ideas as strictly as you would your trade ideas, or even moreso, in that the thought that you must try to include every single one lest you “miss a good one” is a misconception. You end up psychologically (and possibly finanical) crippled by all the Really Bad Setups you took. Extend the patience you’ve mastered in trading to waiting for a really wonderful woman. It can be excruciating, but when it pays off, you know you were doing the right thing.
Know yourself, and be yourself. Sounds like you’ve got that whipped pretty well. Then do what it takes to increase your exposure to good opportunities. Various types of social networking with NON-DESPERATE people. Groceries at nanny hour - good if you’re extroverted. Adult classes, etc - Very Good. Bars - a world of bad outcomes in disguise.
And keep writing- if you’re really fortunate, an intimidatingly intelligent woman like T.L. up there (but single) may track YOU down.
Cheers and Best Wishes
October 28th, 2006 at 10:04 am
Richard,
Great post! Isolation is the biggest downside to trading, but the other benefits outweigh that part. Here is something I do..
Because I do not enjoy cooking, I go out to eat several times a week. Often I end up in interesting conversations with people, because I always eat at the bar. This helps cut down on the isolation factor, and oftentimes, I end up talking to people about what they do for a living, which then leads to learning about a company, and the state of the economy. Which leads to some great trades!! :)
Thank you to the toy salesman who I talked to this past January! MAT has been great, and I never would have looked at that stock! :)
Also, I would talk to any guy I saw walking a cat…not dragging a cat down the street on a leash, but certainly walking with a cat..
Again a great post, good luck in your trading, and your quest.
Linda P.
October 28th, 2006 at 11:39 am
Excellent post, Richard. I found it really inspiring.
October 30th, 2006 at 2:18 am
Richard, I enjoy your writing. On the lines of what Will said, focus on being fulfilled in your life, and the right woman will come.
Check out Dawkins’ website, pretty interactive, and with info on atheist activities.
With Dawkins’ book tour, I think that closet atheists are opening up the doors to their secret, and stepping out in the sunlight of community, and that may help in finding an atheist mate.
October 30th, 2006 at 8:15 am
@Michelle: That’s what I’m trying to do. I think, anyway!
@Will, Linda, Eyal: thanks, all!
October 30th, 2006 at 9:44 am
Richard -
Thanks for reminding me why I’m setting out on this path. Haven’t hit my stride yet, so I’ve been wrestling with all the downsides this past month, including the “lonelies”. And the latter is partly due to a breakup with someone who is from Texas, so I feel for you, bro’. ;-)
Keep up the good work - I’ll have to start checking in regularly.
Pete
October 30th, 2006 at 10:20 am
Richard - Your piece got me focused on the lack of social interaction. It’s been bugging me for a long time, so I wrote about it today in my blog. Cheers.
October 30th, 2006 at 12:51 pm
@Teresa: great article, and best of luck with your new mission to help youngsters destroy the world as we know it! :-)
@Pete: thanks, and hopefully I’ll continue to see you around here at MtM.
October 31st, 2006 at 12:08 pm
two words: WiFi cafe.
maybe stretch your trader homework out to a full hour and just make yourself a fixture.
here at my prefered spot in SF, there is a steady stream of bright attractive women - writers, software engineers, dancers, yoga instructors and one impossibly charming Canadian illegal who had better show today or i may be forced to alert the INS.
grab your laptop and go, my brother.
best,
clue
November 1st, 2006 at 11:45 am
Hi clue!! Of course it would be you that would figure out the solution to the problem!
T.
November 1st, 2006 at 6:06 pm
T, i worship you; i don’t care what they say.
i have to advise against this “reconnect with humanity” gambit you’re contemplating.
a while back i began to feel isolated and bored. i knew something had to change so i went over to Fry’s and bought 4 29″ LCDs, lined them up on my desk and turned the brightness all the way up. i installed a dimmer switch in my trading room and keep it set to low. then i went to RiteAid and got some “Opcon-A” drops, which handle the bloodshot eyes and have the added benefit of keeping my pupils fully dilated. oh, and i switched to the 30tick chart.
and now i’m good.
-clue
November 2nd, 2006 at 4:51 am
Now I really want to see this new video:
“Walk your cat is not boring” :-)
November 2nd, 2006 at 8:23 pm
You’re too much clue. I think my escape from the office can hardly be called “reconnect to humanity”. I think most people in the brokerage business might not be human? :)
January 2nd, 2007 at 5:50 am
A very interesting thread going on here…
;)