Oh, I understood total return, it doesn't sound a little low anymore if you are only talking income.
Should I consider a prop firm? Or just trade my own funds? ($2 mil)
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Oh, I understood total return, it doesn't sound a little low anymore if you are only talking income.
I'm sure as you know ...Reward is generally directly correlated with Risk. But I personally feel risk can greatly be mitigated if you know what you're doing -- thereby kind of skewing that curve.
You can make 1% or 100%+ ...it's all entirely up to you. (or lose it all)
It's basically all up to you how you want to play with your money.
I'm not exactly sure what kind of definite answer you're looking for or expecting to receive.
Everyone is just giving you general advice; Don't expect to receive anything near a Holy Grail or anything that's near guaranteed
Whatever choice or decision you decide to do with your money -- May the farce be with you
I always laugh or roll my eyes when people claim they discovered an edge or system but it's capped at relatively small amounts
... No trading strategy or skill should have that limitation -- you should be able to compound that to the Moon, if you wish,
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Since you asked: I would put about 75% of the inheritance into real holdings. I second what Robert suggested about looking into managed futures as long as you start small and slowly ease in layering in a bit of money each month or quarter on the winners and trim down or exit the losers. IASG knows there funds inside out, can tell you a lot about many of the traders of the better funds, and will give you countless hours of time helping you figure out what you want to do without being pushy. I would never consider putting more than a sliver of an inheritance into my trading accounts and consider day trading to be highly destructive to all but a few rare birds. Good luck.
Two quick reminders:
1) That Soul-Crushing job becomes a lot more tolerable, the first time you realize that you're not *trapped* there. So, freshen your résumé, reduce expenses, and breath easier.
2) REDUCE EXPENSES. Always always always, the quickest, most assured, 100% non-taxable way to accrue wealth, IS TO NOT SPEND what you take in. If you can't live on $50k, you don't belong in charge of $2mm.
3) Reduce expenses.
4) A prop firm is a business model that depends on new money. (If their method was scalable, *they* would scale it, with the push of a button. They would not pay you to do so.) You are paying to learn "methods" which, if those methods worked, would be used by them without the need to pay *you*. "Run awayyyyyy!"
5) Cut your living expenses. Spend your time *that* way.
6) Anyone seriously trading must have something they consider their FIRST/BEST method, but who also, always, constantly, have other irons in the fire, ready to whip out if market mechanics, sentiment, or rules change... whatever. If you insist on trading your newFOUND wealth, consider yourself a full-timer NOW. Alternative time frames, net-long versus net-short, call-side versus put-side, bonds bonds bonds, REAL ESTATE, and do these in palatable little bites that you can taste, master-til-it's-boring, and *then* consider for real capital deployment.
7) KEEP the capital you have, and keep more of it, by cutting expenses first and always.
1) That Soul-Crushing job becomes a lot more tolerable, the first time you realize that you're not *trapped* there. So, freshen your résumé, reduce expenses, and breath easier.
2) REDUCE EXPENSES. Always always always, the quickest, most assured, 100% non-taxable way to accrue wealth, IS TO NOT SPEND what you take in. If you can't live on $50k, you don't belong in charge of $2mm.
3) Reduce expenses.
4) A prop firm is a business model that depends on new money. (If their method was scalable, *they* would scale it, with the push of a button. They would not pay you to do so.) You are paying to learn "methods" which, if those methods worked, would be used by them without the need to pay *you*. "Run awayyyyyy!"
5) Cut your living expenses. Spend your time *that* way.
6) Anyone seriously trading must have something they consider their FIRST/BEST method, but who also, always, constantly, have other irons in the fire, ready to whip out if market mechanics, sentiment, or rules change... whatever. If you insist on trading your newFOUND wealth, consider yourself a full-timer NOW. Alternative time frames, net-long versus net-short, call-side versus put-side, bonds bonds bonds, REAL ESTATE, and do these in palatable little bites that you can taste, master-til-it's-boring, and *then* consider for real capital deployment.
7) KEEP the capital you have, and keep more of it, by cutting expenses first and always.
?!? thread getting weird... to OP and anyone, sure, spend less than you earn, but focus your energy on increasing your income rather than decreasing your expenses.
End up with 2 mil in the bank after decades of crumb saving ?? Pffff...
If you can't live on 50k you don't belong in charge of 2mm ???
Are there many multimillionaire out there who live with less than 50k a year ?
I think in many cities spending less than 50k would mean one has a life struggling with not very superfluous material needs, more so when they have a family, but even as a single 50k a year means a rather barren life, and a good way to find the motivation to make more money is through aspiration to higher spending .
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Legit prop firms (Quad Capital) want a turn-key guy whom walks in and makes money. You will learn things, but a lot of these guys are former specialists and sell-side. They get SPO offerings, which is prob their only edge.
$40K from the 10Y coupon while you consider what you are going to do. I would think you'd need to get into options on large caps if you are "capacity constrained"
Yup. How do you think they got there and remain so ?
Take care of the pennies and the dollars take care of themselves.
Some of the wealthiest people I know are mean as mouse-shit.
For example, I know one who insists on sending cheques becuase they refuse to pay, say, $20 bank transfer charges on a $400k transfer.
Flaunting your wealth is pretty vulgar anyway.
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The part about flaunting one's wealth depends on where you live and which scene actually, in the West people tend to be more discreete than over here but there is still quite a bit of difference on how they act or show their money - old money vs new money is a lasting debate- here it's the Wild East loaded with mostly new wealth so they don't care that much, today while picking up the kids at school, there was a new Bentley in the parents lane, with 2 to 3cms wide sparkle rims on the plates, the kind of stuff which is fine here but would be mostly looked down upon in Europe. I did like it btw.
But there are a lot of penny pinching people where I'm from, and they are all poor. So afraid to spend they will back off from necessary investments that would have bettered their life standard significantly.
I also know a lot of rich people -more or less closely- and while it's dificult to know about the very wealthy that might hide in poor neighborhoods and drive a moped, or how penny pitching some were on their way to wealth, those around (here or in the West )don't appear to be living even remotely like monks, which is preferable when you are trying to do business, or just live a confortable life.
It's fine to be thrifty, but better focus on increasing one's income so comfort/luxury items become trivial expenses than direct one's focus on avoiding those expenses and their prospect altogether.
And for sure living with less than 50k a year sounds very near the poverty line, it makes sense to start spending more than that before having 2mil in the bank, I sure got to that sum spending considerably more than that, and expenses definetely didn't go down afterward.
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