Hi Guys - I have been very fortunate to have found this forum and have been a passive reader for the last six months now. I am very impressed with the knowledge and practicality that so many of you guys have here. Your posts have helped reinforce several core concepts which somehow I lost focus of over the years.
I would like to introduce myself and my current situation and would like some responses from some of you guys. I am male, 35, married (no children yet but planning to start a family in the next 2 years). I work in financial services industry. Just like so many of you guys here I dont want to work for somebody else. I want to pursue my passion - day trading and swing trading in the markets full time. I have a very strong passion for the stock market, futures and forex. I have tried trading in the evenings and nights and have had mixed results (not the ideal time to trade but thats what is available if I keep a day job). I have accumulated a lot of experience and knowledge using technical analysis, money mangament etc. I know day trading has very low success rates and requires solid discipline but I wouldnt know I have it until I try it.
On to my assets I own a fully paid apartment in manhattan (market value $1.25 million or so). My 401k has 250k and my liquid investments most of which are primarily in savings and CDs are approx. $4.25 million. (Wife just started working but I would like to leave out any assets she accumulates from our net worth- its for her to do what she wants with it).
My expenses are approx. $50,000 per year currently. (on the high side). Health insurance from my wife's employer shoud I quit.
So my questions:
(1) Do I have enough to leave my day job and start day-trading? (Lets assume my income from trading will be ZERO- no income and importantly no losses). Could i live off my net worth for say 65 years out? (100 year life expectancy just to be absolutely on the safe side). Inflation thoughts make me go dizzy. Thats why the uncertainty.
(2) Im pretty much all in cash, savings, CD, short term bonds and negligible equity ( had been selling my equity during this run up - sold at S&P 800, then 850, then 900, rest at 950 convinced each time market aint going higher). Have been feeling like a fool for quite a few months now and consequently find myself all in cash only to hear everbody shorting USD and buying gold . SO I have approx. 4.5 million to invest and the allocation and timing makes me dizzy again. What allocations would you suggest if I were to quit my job and start day trading full time? And within what time frame should i execute those?
(3) I have an option to even relocate to the suburbs where my expenses will reduce from 50k to 40k (renting an apt) and if I do that I would then have my current condo netting me a net after tax income of approx $20-25k (so my net expenses would then be 15-20k only). Is this a game changer? Would I even need to do that? Am I just thinking too much?
(4) Quality of life - I dont really need retirement but freedom to day trade. I could be on the computer working hard 16 hours because of the passion and interest i have for the markets. I dont know how long I live but do you guys think it is time for me to just do what I want even if it means quitting from a job that pays great (500K+), decent prestige etc etc. ( assume If I quit here I dont think i will ever make this kind of money in another job ever - maybe 100-150k max if at all).
Thanks for the patience in reading this email and I sincerely apologize for it being long winded. This email is still a tiny fraction of the true cross currents of thinking and hypothizing and philosophying that go in my tiny little brain.
Thanks guys.
I would like to introduce myself and my current situation and would like some responses from some of you guys. I am male, 35, married (no children yet but planning to start a family in the next 2 years). I work in financial services industry. Just like so many of you guys here I dont want to work for somebody else. I want to pursue my passion - day trading and swing trading in the markets full time. I have a very strong passion for the stock market, futures and forex. I have tried trading in the evenings and nights and have had mixed results (not the ideal time to trade but thats what is available if I keep a day job). I have accumulated a lot of experience and knowledge using technical analysis, money mangament etc. I know day trading has very low success rates and requires solid discipline but I wouldnt know I have it until I try it.
On to my assets I own a fully paid apartment in manhattan (market value $1.25 million or so). My 401k has 250k and my liquid investments most of which are primarily in savings and CDs are approx. $4.25 million. (Wife just started working but I would like to leave out any assets she accumulates from our net worth- its for her to do what she wants with it).
My expenses are approx. $50,000 per year currently. (on the high side). Health insurance from my wife's employer shoud I quit.
So my questions:
(1) Do I have enough to leave my day job and start day-trading? (Lets assume my income from trading will be ZERO- no income and importantly no losses). Could i live off my net worth for say 65 years out? (100 year life expectancy just to be absolutely on the safe side). Inflation thoughts make me go dizzy. Thats why the uncertainty.
(2) Im pretty much all in cash, savings, CD, short term bonds and negligible equity ( had been selling my equity during this run up - sold at S&P 800, then 850, then 900, rest at 950 convinced each time market aint going higher). Have been feeling like a fool for quite a few months now and consequently find myself all in cash only to hear everbody shorting USD and buying gold . SO I have approx. 4.5 million to invest and the allocation and timing makes me dizzy again. What allocations would you suggest if I were to quit my job and start day trading full time? And within what time frame should i execute those?
(3) I have an option to even relocate to the suburbs where my expenses will reduce from 50k to 40k (renting an apt) and if I do that I would then have my current condo netting me a net after tax income of approx $20-25k (so my net expenses would then be 15-20k only). Is this a game changer? Would I even need to do that? Am I just thinking too much?
(4) Quality of life - I dont really need retirement but freedom to day trade. I could be on the computer working hard 16 hours because of the passion and interest i have for the markets. I dont know how long I live but do you guys think it is time for me to just do what I want even if it means quitting from a job that pays great (500K+), decent prestige etc etc. ( assume If I quit here I dont think i will ever make this kind of money in another job ever - maybe 100-150k max if at all).
Thanks for the patience in reading this email and I sincerely apologize for it being long winded. This email is still a tiny fraction of the true cross currents of thinking and hypothizing and philosophying that go in my tiny little brain.
Thanks guys.