Trader lifestyle

I have been trading full time for three years now. After I graduate from university I will change my residency to one of the gulf states to take advantage of the low tax rates.

From there on I will live as a perpetual tourist. I will rent furnished apartments in exciting metropols and change location every three months. I'm a young man so there are very little ties that keep me to a single place. Moreso, I can afford it.
 
In all honesty, I will be shocked to find out that 20% of the people posting on this thread can afford to fix the tires on a Bugatti Veyron, let alone buy a ferrari.

One of the reasons I believe you don't get such talks on ET is because there aren't that many ET's in here that can afford such things. The insurance on a ferrari alone can be crippling

I also find it amusing how a # of ppl are quick to point out that just bcuz you buy fancy things, you probably have some insecurities. I own an M6, Range Rover Sport, and a E63 AMG....I like Ferragamo shoes, and I like tailor made suits. Am I insecure? I'll let you be the judge (Since ur good at it). Apart from my house and other real estate investments, those cars are the only major purchases I had in the past ~2 yrs. Given that you plan wisely, you can afford to buy nice things without going burst. So pls go easy on the generalization, it says more about your intelligence than you think.

There's absolutely no reason to justify why you drive a Camry...Its your money, spend it as you wish.

I would however agree with the notion that most traders live below their means...I think its a wise idea, it's the only way to stay ahead in this game. My closest trading buddy drives an altima....he makes 7 figures (Not 6). Why does he drive an altima? Bcuz he has better ways of spending his loot.

What works for you doesn't necessarily work for me. And, please live within or below your means. It's a smart idea.

BTW, all the aforementioned things are all paid for.
 
at least someone here makes money :p

Quote from Eko_Trader:

In all honesty, I will be shocked to find out that 20% of the people posting on this thread can afford to fix the tires on a Bugatti Veyron, let alone buy a ferrari.

One of the reasons I believe you don't get such talks on ET is because there aren't that many ET's in here that can afford such things. The insurance on a ferrari alone can be crippling

I also find it amusing how a # of ppl are quick to point out that just bcuz you buy fancy things, you probably have some insecurities. I own an M6, Range Rover Sport, and a E63 AMG....I like Ferragamo shoes, and I like tailor made suits. Am I insecure? I'll let you be the judge (Since ur good at it). Apart from my house and other real estate investments, those cars are the only major purchases I had in the past ~2 yrs. Given that you plan wisely, you can afford to buy nice things without going burst. So pls go easy on the generalization, it says more about your intelligence than you think.

There's absolutely no reason to justify why you drive a Camry...Its your money, spend it as you wish.

I would however agree with the notion that most traders live below their means...I think its a wise idea, it's the only way to stay ahead in this game. My closest trading buddy drives an altima....he makes 7 figures (Not 6). Why does he drive an altima? Bcuz he has better ways of spending his loot.

What works for you doesn't necessarily work for me. And, please live within or below your means. It's a smart idea.

BTW, all the aforementioned things are all paid for.
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Quote from EricP:

I've been following this thread for a while, and have to say that I agree with this post more than any other.

There are spenders, and there are savers. Typically, the spenders are less likely to be great traders for many reasons:

1) They never accumulated the assets needed to enable them to 'take the risk' and attempt trading.

2) If they were able to attempt trading, they vastly increased their likelihood of 'blowing out' as they spend much of their profits, leaving less to fall back on during difficult times.

3) With an expensive lifestyle, their level of trading size and/or capital could not increase as quickly as their saving conterparts. Therefore, the savers would ultimately be swinging much larger trading size and generating much greater profits than their spending counterparts. A spender that makes $150k in a year will likely have little of it left, after taxes and spending, enabling them to (hopefully) make $150k the following year. The saver will still have almost half of their profits compounding in their accounts, enabling them to make $225k in the profit the next year. Over time, they will be making many multiples of the income that the spenders will make (not to mention reducing their 'blow out' risk).

As I believe Red Ink pointed out, there is a time for saving and a time for spending. If a trader has accumulated sufficient profits to comfortably retire and never work another day in his life, then he can begin spending his assets (maybe ~5% per year of total), without concern about future needs. Until then, I believe traders should live well below their means, and accumulate capital - remember, traders don't usually have an employer funded pension or health care plan - you gotta look out for yourself, as no one else will or should.

My best advice on spending, is that a trader should spend money upon that assumption that he'll never make another dime with his trading (and may actually lose ~50% of what he has). If you spend this conservatively, then you'll certainly live like a king when the time is right, but will not blow your cash needlessly and regret it when the dark clouds appear for several years at a time.
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I agree.

I have been a saver since I started trading at the age of 18...ten years ago. This will be my last year of trading..time to enjoy what I have made.

Saving most of my profits was key for me. This allowed me to take the BIG risk from time to time. Some peers thought I was a nut case because I would drop some cash into an option the day before expiration looking to gain 8 or more times my money. There would be times were I would have to eat 100k loss and it sucks but those times I 'hit the home run'...paid off well. Point being, the more you save now...the quicker you can retire and enjoy life.

I will be a father next year and now I am in a good position to spend time with my wife and soon to be boy(I hope thats the gender). Knowing that I can provide a stable home is rewarding. And for me, this is the best position I could ask for.

For the newbies, dont' get caught up in 'stuff'. With that being said, set a goal for yourself. "When I reach 'x' this is how I am going to reward myself." One of the most memorbale moments of my life, was when I paid off my current home. Its such a great sense of accomplishment. My mentor always told me this "Michael, its not your money until you quit"
 
Quote from Port1385:

You have to understand what he is telling you. The picture in your head is of a guy making expensive trips and bedding down with some debutantes.

The real story is that he is talking about living in a third world country and bedding down with cheap prostitutes.

Round-trip airfare to Colombia from JFK=$500
Rent of an apartment in Colombia= few hundred a month
Price of the ladies= 50-100 bucks a night negotiated
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50 to 100 dollars???? Last time I visited Latin America (which was in 1991) it was 5 to 20 dollars. AND they say there is no inflation. :D
 
Quote from Clubber Lang:

http://elitetrader.com/vb/showthread.php?s=&threadid=48836


How were you able to find the time to make all that money from 2005-2007 and still jetset aroung the world bedding a different woman every 2-3 days?

BUSTED.
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I was in the money before I came into the trading business mainly to preserve wealth but I traded like I had $3 in my pocket like how a boxer runs with a 75 lb bag, Makes you a strong player when restrictions are removed.


-----------------

How to find Cities with the best cost of living


http://en.wikipedia.org/wiki/List_of_most_expensive_cities_for_expatriate_employees
This above link is actually quite accurate compared to other gdp links such as :
http://en.wikipedia.org/wiki/List_of_cities_by_GDP
which lists vancouver as a decent place to live which is bs.


I usually start from the country, then research each countries smaller citie's GDP. wikipedia is very good. You should go to a country where you can communicate the language therefore have some fruitful relationships instead of sign language bullshit

Nothing beats actually TRAVELING to the country and really getting a feel of the prices and women.

Somen women are fuking ugly in certain countries with extreme low cost of living.
You should be in a city where
a) you can speak the language
b) women have a good looking ratio of lets say 1 in 30 (brussels) , not 1 in 200 (ethiopia) or 1 in 70 (thailand)
c) Place is livable up to your standards.
d) cost of living is low compared to the standards.

---------

2 week travel to each country is pristine, get a feel of everything, You should have a adventourous (pack light survival everything) type of mindset, If you are expecting US standards with US customs, stay in NYC pay US prices.

Explore with a , I can withstand everything, You might actually find gold where most people never reveal, nor would I :)

Good luck.

----------------

I use to have tons of clothes, suits and all in NYC, Now I have 3 shirts, 2 pants, 1 gymshorts, 1 sweatshirt,1 jacket. (All I can fit in a rollersuitcase) , Now I have people to wash my clothes , but I 've lost the will to buy more clothes cause it doesn't fit in my suitcase theory :)


I have many theories and perceptions in how to "live", its allowed me to live a 5 star life with no risk, just like my trades, Instant profitable, with no risk.
ATM in life.
ATM in trading.

How it should be!
 
The rate of solid
a. 18-23 year old
b. pale( close to white as possible)
female vagina for a lay (date or just lay)


Is around $15-25 worldwide averaged.



If you are in NYC, you'll know its around $150 for a date/dinner, $150-350 for a hooker. lol@ that.
Talk about overpaying and underserved.

Buying a ferrari just to land you some $20 (true market value) pussy doesn't seem like a great idea afterall.
 
Quote from EMRGLOBAL:

It is interesting that the image of "Traders" is far more success than the truth of not making money or little money.

At Schonfeld, less than 5% of the traders, firm wide, made Million plus. Most washed or made under 50k. I was lucky to be in the room with Rearden, who was in the 5%.

I find that my small firm, guys that hustle the Private Equity World, are making far more than 95% of the traders I knew.
7 figuers a year can be the norm if you'r with a solid firm and learn the game. It does not happen a overnight but give your self two years in the game as a survivor, its 7 pretax easy.
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How is Rearden....I haven't heard any updates. I hope he was able to get back on his feet. Helluva trader...and a good guy as well.

As far as your figures at Schonfeld....they are off. Most didnt make 50k or wash out. I am not sure where you fell into as far as p/L.....but I was there From 1995 until 2002....as well as back in LI in 1992....and the guys I traded with made well over 50k.


Not sure where you are getting your figures from...but they are wrong.
 
Quote from Eko_Trader:

Am I insecure?
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Well, let's see.

You just joined to make a multi paragraph post, 80%+ of which is to brag about yourself & your (alleged) success & wealth.

Gee, what do you think?
 
Quote from coolweb:


If you are in NYC, you'll know its around $150 for a date/dinner, $150-350 for a hooker. lol@ that.
Talk about overpaying and underserved.
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I'm in NYC, and if I want a lay, I go to the bars and get them into bed with my skills, not my wallet. If I take her for a $150 dinner it's because I want to go enjoy the dinner. If I get some action from her, great, if I don't, oh well, the point is that I enjoy the dinner.

You just have no game.
 
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