New trader. Is my strategy ridiculous?

Quote from sumfuka:

So what is the difference between investing and gambling? Assuming proper money management skills is put in place for the both of them.
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When investing, I'm paid for taking on risk. Expected returns over time is positive. If outcomes are highly volatile, I expect higher returns over time.

With gambling, outcome expected value is negative. I know I'm paying out with every hand played. I'm just hoping for some positive volatility before losing, because that's the entertainment part of it all.
 
RE: Another Cold, C-Kid, etc thread? Yep!

Sure smells like one.


Quote from Sanaz3:

.....1- If you are really making $250K a year working a day/night job, why do you still want to get rich, because you are already rich. And what kind of a moron pays a 26 year-old $250k USD a year? I have worked in the oil sands of Canada where big money is and they still make less than what you do with 20+ years of experience. ---> conclusion: you are lying.
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I agree with you. A technology professional, working 20+ years in the field, can hardly get $100k/year in today's environment. A 26-year old making $250k/year - if this "making" means salary... I will be hard-pressed to believe it. Even corporate directors would not make that kind of salary. The only way to achieve it is through options, bonus or other incentives. But this is not 1999.



Quote from Sanaz3:

2- The $500K, it's not US dollar, but Hong Kong dollar or some other big number currency, right?
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Maybe Zimbawe dollars.
 
Quote from slouse:

Not a joke thread, honestly. I have a high hourly wage and access to almost unlimited overtime at double time. I work a lot. I live in an isolated boom town and get large subsidies because of it. Although I work a lot of hours, I'm fortunate to have the opportunity to work where I do. Also I'm 26 which makes me a few years older than some of the younger ones so it's not all that impressive. There's a lot of 200k+ people at work.
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Just bank your salary for a few years, and afterwards if you want to be in the market, park some of it into some strong eligible dividend companies, and you'll be way ahead of most people, including most people on here.

The reason why people think you are crazy is because they know the feeling of losing everything into thin air, and starting with a fraction of what you have. Look, 500k is usually a lofty target for most experienced people on here, not a starting point for a beginner awaiting the almost inevitable blowup initiation.

I would take that 50K you made and segregate it off solely for your trading/gambling adventures where you'd be more in line with other beginners. Leave the rest out of it for now.
 
I'm not sure what's so hard to believe about a 26 yr old making $250k. Like I said, I work a lot of hours, avg almost 65 a week. Everyone I know at work makes at least $200k. It's not all salary. I get overtime, bonuses, etc. It's not like my base salary is 250.

There are certainly a lot of people younger than me making a lot more out there.

Anyway, I appreciate the comments and the PM's. I got a good laugh at the jokers on here.

I started buying real estate when I was 20, got a couple good properties in a hot market that boomed, where I made most of the cash I have. I don't even have a million in cash and equity yet, getting really close, though.

I should mention I drive a 1998 Altima with 150k miles. I don't care about material possessions...only money.

I'm going to continue doing what I'm doing until something goes terribly wrong.
 
Quote from heech:

When investing, I'm paid for taking on risk. Expected returns over time is positive. If outcomes are highly volatile, I expect higher returns over time.

With gambling, outcome expected value is negative. I know I'm paying out with every hand played. I'm just hoping for some positive volatility before losing, because that's the entertainment part of it all.
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Perhaps next time you are at the casinos, it might be a wise move to leave the table while you are still in positive volatility. Then your outcome expected value wont be negative. Assuming you don't play rigged games like blackjack. :)
 
Quote from Bolimomo:

Maybe Zimbawe dollars.
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There are not Zimbabwe dollars anymore:

In an effort to combat inflation and foster economic growth the Zimbabwean Dollar was suspended indefinitely on 12 April 2009.[108] Zimbabwe now allows trade in the United States Dollar and various other currencies such as the South African Rand, Euro, Sterling, and Botswana Pula. The use of the US Dollar yielded enormous results within weeks as inflation actually fell below zero to -3 percent.

From: http://en.wikipedia.org/wiki/Zimbabwe#Hyperinflation_2003-2009

Still, good point :D
 
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