martyp
Thinks s/he gets paid by the post
It sounds like you are too young to retire, not really FI, and don't know what you want to do. Find a job you like and LBYM.
Luckily, a few years ago, I got into trading and have come up with a way to reliably return 10-15% every year.
Thank you all for your advice.
I've talked to my manager and will be taking the month of July off and will re-evaluate my situation. Perhaps all I need is some time off to recharge and comeback. But, I am secretly hoping I don't. Either way...thank you all for your responses!!
Nobody on this planet has a system that reliably returns 10%-15% a year. Do not quit your job based on this faulty assumption. Your 15% gain could quickly turn into a 15% loss and then where would you be?
Luckily, a few years ago, I got into trading and have come up with a way to reliably return 10-15% every year.
Nobody on this planet has a system that reliably returns 10%-15% a year. Do not quit your job based on this faulty assumption. Your 15% gain could quickly turn into a 15% loss and then where would you be?
A ridiculous statement since you are not familiar with everyone's system on this planet.
Regardless of that snafu...if the spirit of your statement is that there are no guarantees in the market, you are right and I spend most of my time focusing on risk management to get me through the rough times and it has served me well.
Snoopy, I'm not going to ask you to reveal your secrets, but would you mind telling us in exactly which years you got 10-15% returns?
I'll step out a little further and ask what return you got each of the (few) years you have been trading.
To be totally candid, your claim sounds incredible -- over a long term.
You do not have to know everybody's system on the planet... there are really only a few 'systems' and all have proven to be wrong...
Probably one of the best 'systems' is Warren Buffet with Berkshire... I did a quick look at the 40 years of returns for them between 1967 and 2007...
Guess what... there are 7 years with negative results... (and the list did not have the last few years when I bet there was another one or two)...
There were also 7 more years of positive return, but less than 10%...
So, if one of the best investors in the world has earned over 10% a year in 26 of 40 years.... I doubt your 'system' can do it year in and year out...
And to be clear... a system is a process that can be repeated by others.... not some dumb luck which cannot....
PS... Berkshire avg annual return was over 24%.... so in total he did very well... and still had losses...
So, here is my dilemma. I am 33, single, no kids and renting. I have 25k debt (I financed a car recently). I currently have a job that pays in the low 6 figures, but I just hate having a boss and more importantly it is a desk job that involves staring at a computer all day long and I can see my eyes and health going down the tubes bit by but every year.
./.
Please help me think rationally and come up with the best decision.
I just sell options on futures. The reason is that futures use SPAN margin and for the same % return you use less margin than say selling options on stocks.
I have tried to make money by buying options and have failed, but if someone tells that they have been able to do that for several years....I would not respond by saying 'no, it cannot be done'. A more accurate statement would be 'I cannot make money buying options.'
So...when you have no experience selling options or being profitable by selling options...your opinion on systems that sell options are invalid.
Take a look back at the post... nobody said you could not make money over the past few years on a system.... we just question that you can do it consistently over the long term.... IIRC, (not looking it up), you stated you had a system that 'reliably' returned 10% to 15% per year... now that you posted your system, you claim is BS... (which, BTW is what people have said)....
Not that you have not had gains the last few years, but it is not a reliable system...
But, good luck to you anyhow....
Snoopy,I don't know how naked options on ES would be a system, how do you risk manage but keep upside? Is it a side bet with a portion of your funds or does this represent the entire portfolio management system. Congrats on success so far and good luck in future
Selling Naked Options on Futures?
Doesn't that have the potential for unlimited/unbounded losses , when the day finally comes around?
Sure you broker will try to liquidate all your positions before you run negative, but legally you are still on the hook if that doesn't happen.
Watch out for the future Flash Crashes.
Hopefully you only have a small fraction of your Net Worth in this particular brokerage account.
-gauss
(former dabbler in Futures & Options)
p.s. have you ever read about Martingale Casino betting systems?
I learned about those the hard way!
Ok then in this strategy are you sitting watching the market throughout the trading day in case you need to adjust or can you set trade rules and live the passive investor life?