Today's wealthy is not like yesterday's wealthy. In the 80s and 90s, the market had much larger swings. From 1980 to 2000, 20 years, the market went from 100 to 1500. Anyone who put money in the market through any investment vehicle was rewarded. Some folks who worked for names like Southwest, AIG and Walmart became wealthy just from investing in the company's employee stock program.
In the early 90s, employment was in higher demand and salaries generous. A college graduate going up to the Bay Area could easily fetch a salary of 75k or more. Everything was much cheaper back then like houses, cars, food and energy. However, throughout the 00s, salaries have degenerated and expenses have gone wildly higher. During the 90s, everyone desired a six figure salary and a lot of them eventually got there. Employers eventually gave them what they wanted along with generous benefits packages. Every job I knew of had a year-end bonus. Everyone went home getting paid.
I can see where some might find it hard to imagine large amounts of money today seeing that low salaries and high expenses is the new normal. However, yes, there was a time when someone was able to make tens of thousands in a few days jumping on an uptrending tech stock using less then 100k. There was a time when someone did not have to use a million dollars to make 5000 dollars. There was a time where a college graduate walked off the street of an employer and got a job for 75k while a decent house cost only 200k.
Sadly those times are gone...I can imagine if someone got a large amount of cash today then they would not spend it. The new generation of people knows what its like to do without. The generation of the 90s spent where as today's generation hoards. The new generation does not measure a job in terms of salary, but in terms of happyness. They know most jobs wont give them what they want so they look for other reasons to be employed.
Even though housing has come down some, its still at much higher levels then in 2000 and salaries seem to have further degenerated from year 2000. I wonder if and when the days of easy money will be back...maybe not in my lifetime.
Quote from sub0:
I know just like the culture shock of being poor or losing lots of money, how do you deal with being wealthy or suddenly having lots of money? How has it effected you as a person?
I bring this up because I've read of all the traders here who mention trading has changed their life, they are independent, free and have found their way. Before that though they lived a certain lifestyle and now they live a new one. How do you deal with the change?
Like for example Neke who traded his account up from around $5k-10k to around $325k to now $700k and is shooting for $3.5 million. Sitting with a trading account at around $700k has to have a significant impact on you if you are coming from days when you had $5k-$10k.
I'm just wondering how some of you guys have dealt with the success, possibly even fast success? I would think it must feel unreal in many ways.
glad to know that behind all the aim to profit in trading, traders also do think of others specially those who are in need.