On... Personal Finance Golden Rules

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On... My Business Model

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 Last post , I wrote that trading should be done like you're running a business. If so, what kind of business would I be running?  The business model that I best want to replicate is a casino business ( see this video , if you want to skip the rest of the blog post ). Most people that I talk to, thinks that investing or trading is a form of gambling. Is trading or investing really gambling? This topic is rather divisive and it depends on who you ask. Well if it truly is gambling, I would want to play the part of the casino, because as they say, the house always wins.  How does the casino make money? By having a positive expectancy.  They don't have to make money on every bet, but over large number of bets, the profit has to be bigger than the loss. In terms of trading, my winning percentage is not really that great but as long as the average winners are bigger than the average losers, that is good enough. Year to date for 2021 ( over 133 number of trades ), my winnin...
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On... the Short Cut

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Punk 6529 had a Twitter thread titled " On Making It ". It is a good thread and something that I do think about from time to time. TLDR of the thread is as follows. Live can be divided into 5 levels financially. Level 1 is barely enough to survive. Level 2 is living paycheck to paycheck. Level 3 is living comfortably. Level 4 is Super Rich Level 5 is Nirvana. My personal opinion or net worth range that I apply is as follows. Level 1 - 0 to 1k$. Level 2 - 1k to 100k$. Level 3 - 100K to 10mil$. Level 4 - more than 10mil$. Level 5 is when you're happy with your net worth. This is a very special level because it is not defined by your net worth but defined by your own satisfaction. This is of course a very rough representation of what Punk 6529 is talking about. I have lived my life mostly in Level 3. Grew up in a Level 3 Family when I finally got a job and is pursuing my own career, I was mostly in Level 3. Early in my career, as an ambitious young man, I have considered tha...
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On… Personal Finance

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When you visit a financial planner, you don’t ask questions first - the financial planner does . Why? Because everyone’s financial circumstances are different and the planner has to understand your situation to make  a plan that works for you. There is no one size fits all solution. After all, personal finance is personal. Here’s a few stories…. I have a friend who is rich enough to retire if he chooses to. However, he plans to build a mansion, and that would put him in debt for many years to come. Is living in a mansion better than financial independence and early retirement ? I don’t know. Maybe. My wife’s ex-colleague quit his job as a professional in a mining company to become a park ranger. He would probably be earning much less in his new job but he would be enjoying his new career more. Is job satisfaction more important than money? I don’t know. Maybe. My mother in law has a friend who has been separated from her husband for more than 10 years, living onl...
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