Making a living from stocks require big capital. You can't just depend on trading gains, you could fall into the trap of taking too much risk in your trading so as to make up lost income from your previous salaried work. You should just look at dividend income to replace your lost salary. For instance, if you were making $100k pa, you must have a dividend stocks portfolio making up of global blue chips that give you 5% pa, so your investment capital for this must be $2m. You can then set up another fund for trading, say about $500k. This fund is more risky as you will be trading on it.
I sold my landed property and DOWNGRADED to a 3 bedroom condo and then set up my own investment fund worth $3m. The dividend stocks portfolio provide sufficient income for my family. My wife's salary is saved. We have no debt.
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Originally Posted by Unregistered
Good one.
As you rightly pointed out that it is a zero sum game, I guess the losers would be those that are still working their day jobs while trading on the side.
One my friends who went into full time day trading on his own lamented that unlike salary earned, the gains he made each day, week or month cannot be "saved" as he could lose it all in the next trades. There is just so much uncertainty.
So I scared already, only buy stocks for their dividends.
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