Quote:
Originally Posted by Unregistered
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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If the source of income is from dividends, then there is no such thing as doing full time managing the stock portfolio. If the income is dependent on profits from active trading, then cannot count on consistently beating the market to make a consistent income from it. In gist, once you have accumulated substantial capital to provide dividends that can sustain your lifestyle, then the so called full time stock trading is just meddling to give one a higher sense of achievement. Many people likes to think of themselves as some savvy stock investor......very dangerous mindset...