Not so fast. At least, you can technically last up to 5 years after opening for biz. Not so with day trading. Here's are some stats for day trading, which I believe are quite accurate.
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Best low risk investments, Oct 2022
- Thread starter ValeryN
- Start date
Good Morning schizo,
For 5 years, the business owner trying to start business experience the following:
1. Loss of other income and investment opportunity for 5 years.
2. Loss of dollar cost average in 401k SP 500 index for 5 years.
3. Go in business debt and loans at high interest for 5 years.
4. Put their family in debt for 5 years.
5. After 5 years, still have to pay off debt at high interest for the business failure.
6. Lose good work experience and skill set during the 5 years.
7. No job experience for 5 years. No job will hire you cause you not been working for 5 years.
8. Can not afford to live a decent quality life for the next 10 years cause still paying off debt for the business failure.
9. Most importantly, mental damage of losing money.
All those 9 trama effects and more, while the smart person focus on career paying +$100K, investing in quality SP500 index every pay day, getting bonus at work, good health insurance and quality of life, while trading part time trying to obtain additional income and wealth building.
Lol, its 2022, starting a business has a good 99% of risk of ruin.
In addition, I have yet to hear anyone tell me a good business to start. I think a food truck is a good low cost business to start, and even that should be a side hustle.
I will say it again, trading the ES futures market for 23 hours a day is blessing disguise and truly the best business in the world for the wise man.
Work smarter not harder
Hello schizo,
The start up cost to trading is cheaper then starting a business.
Trader has full time job and career.
Trader takes $50,000 from savings to trade part time.
Trader loses $20,000 of the $50,000, and now have $30,000 remaining in 1 year.
Trader stop trading and moves on to other income goals and stay with full time career.
Trader keeps full time career, only loses $20,000.
Trader wins in the end.
Work smarter not harder
do that over and over ...
I am not going to give you a list, I wrote a book on the subject
Why 95-percent of the people lose starting a business? Let me turn the table on you...Why majority of the people are unable to get a gig that pays 120k with insurance and 401K? Well most people are lazy, uneducated and stupid. BTW the job market is not going to stay this hot. In the near future you will see changes and higher unemployment
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A] Excellent+ wise post.
b]I bonds[US] @ 9.62%\ that's only for 6 months\Dave Ramsey noted historical average on them is less than 5%. So plenty of inflation risk\opportunity cost on those + 3 month penalty for early cash in. [BUT that maybe better for some than the 4% dividend ETF i cut a loss on in this bear market\LOL
].It can be easy to lose money in a bear market
c] Among the best risk reward ratio, but payoff date is not exact like a dividend ETF or CD, follows.
Give away nice clothes you dont wear in past 12+/ months+ some good food. Good repeat pattern.
I just got a 10 bagger+ of garden groceries from my neighbor's garden.
They taste much, much better than store bought. No wonder my banker dad told me long ago ''never be afraid to get your hands dirty
''
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Really? You must be stuck in the 1980s and think you have to open a brick and mortar or run a franchise. There are many things you can do online and even test your ideas first (with an inexpensive ad) before committing. While pretty outdated (and despite the cheesy title), Tim Ferriss' 4-Hour Workweek is a good intro.
Hi Val,
I am working myself into long positions, but am in the VERY VERY early stages as conditions are not right yet for most of it. But rather than a knee jerk "market crash gotta own", I''m buying only things that are not correlated to the overall market AND have potential fundamentally.
So the only thing I have picked up so far for 1% of the portfolio and only 70% of that is a biotech stock from the ARKG universe. DNA. I also have MCRB from about 4 years ago.
These type of stocks move based on fundamental developments, have (nonAKRG) institutional holders who I respect, and have emerging technology that is starting to be commercialized. They are also LT capital gains type holding for me.
The other choice are solid revenue companies that pay a reasonable dividend, and have price appreciation potential after an overall market smack down. But the market has not presented the right appreciation potential yet.
The last choice, is I purchasing small real estate things that are semi distressed, great locations AND I can use in the mean time. These are unleveraged (no loan) purchases. One is a purchase in CAD (Canadian) as the exchange rate is favorable. I will probably make more on the FX rate on than the property. The other is a hard to acquire, low overhead condo near my adult child.
Go Slow. Go low allocation (% of portfolio), and go quality. Otherwise I like cash. I also like CAD as I can use it, and is still cash. Euro has not presented enough of an opportunity yet to me.
Hope that helps.
I am working myself into long positions, but am in the VERY VERY early stages as conditions are not right yet for most of it. But rather than a knee jerk "market crash gotta own", I''m buying only things that are not correlated to the overall market AND have potential fundamentally.
So the only thing I have picked up so far for 1% of the portfolio and only 70% of that is a biotech stock from the ARKG universe. DNA. I also have MCRB from about 4 years ago.
These type of stocks move based on fundamental developments, have (nonAKRG) institutional holders who I respect, and have emerging technology that is starting to be commercialized. They are also LT capital gains type holding for me.
The other choice are solid revenue companies that pay a reasonable dividend, and have price appreciation potential after an overall market smack down. But the market has not presented the right appreciation potential yet.
The last choice, is I purchasing small real estate things that are semi distressed, great locations AND I can use in the mean time. These are unleveraged (no loan) purchases. One is a purchase in CAD (Canadian) as the exchange rate is favorable. I will probably make more on the FX rate on than the property. The other is a hard to acquire, low overhead condo near my adult child.
Go Slow. Go low allocation (% of portfolio), and go quality. Otherwise I like cash. I also like CAD as I can use it, and is still cash. Euro has not presented enough of an opportunity yet to me.
Hope that helps.
Hello TimtheEnchanter,
Please tell me what legal business to start that is better than having a 40 hour a week job that pays +$100K per year, great health insurance, and 401K retirement plan?
Make sure the legal business can make $100K by end of year 2023 please.
Please do not reply unless you have this answer to avoid endless unproductive conversation
If you do not know the exact legal business, just say that.
Thank you,