Ding Goes the Bell, My New Investment Strategy

The moderator announced 7 minutes and my heart started beating faster. Was I prepared? I did my homework. I felt like I was ready. I had my eye out for a few key things to watch for. I studied hours of video. I put in a lot of time preparing. 1 minute. Everything was a buzz, I started to feel distracted, was I going to go for it right away or wait for it to come to me? Aggressive? Cool? Ding, Ding, Ding, Ding.

It was my first opening bell as an active participant in stocks. Sure I have my 401k, but options are limited in how you allocate your money. I have also bought discounted shares of company stocks and sold them. This was different. This was my first day taking things into my own hands. I was now an active day trader.

Day traders participate in the act of buying and selling stocks typically taking advantage of shifts in stock prices throughout the day. It is not uncommon for a day trader to buy and sell a stock multiple times throughout the course of a day.

How did I get here?

I was making moderate gains in my 401k. Some would say better than average. I was well diversified when the recession hit and at a market low I decided to move my 401k to 95% moderate to aggressive stocks. This saw a significant increase to my portfolio that continues to this day. While everyone is jumping back into the market, I might actually go back to a more diversified portfolio. However 401k’s are boring and outside of retirement, nobody has ever been able to quit their job and do what they love because of their 401k.

I also have my peer to peer lending profile. That continues to grow but it is very slow and I have found that despite my ability to profit, I have not yet found the best way to maximize the growth potential. I will continue to fund this account as I am curious to see what this looks like when you have a good amount invested. One drawback of this investment is that it is a bit time consuming with little return in the way of time vs value returned.

New Investment Strategy

My final investment before just recently moving into day trading was building my own business. I found that I could identify areas where there is apparent need but I was limited in my ability to provide the effort to make these businesses grow. I have a full time job that does not allow me to get out there and meet people and I do not have the skillsets to invent something nor the desire to spend the time to obtain those skillsets.

One day while listening to one of my favorite podcasts (School of Greatness with Lewis Howes, check it out!) I stumbled upon an interesting day trader that teaches how to do this properly. He detailed that with guided focus and a disciplined approach you can grow your wealth day trading.

This teacher is a great marketer and therefore is very convincing. So I had to look into this and what I discovered was exactly what I was looking for. I was presented with an opportunity to pour through gobs of data (which I find I naturally do pretty well), study something that I already find interesting, and participate in an active and helpful community. All this with the one thing I struggled with the most, finding something that when successful I will be provided the opportunity to be location independent.

While researching I found warning messages all over the place telling you that day trading is highly speculative and you should not participate unless you are willing to lose your entire investment. Well that is odd, who is willing to lose their entire investment? I know why they have to say that though.

I can certainly say that day trading is not for everyone. Some people have a really hard time watching their investments disappear for good reason. What I am seeing however is a rapid increase in corporate turnover. A shift in the workforce from full time employees to contract based workers. Stagnation in wages and a growing gap between the cost of living increases versus the average yearly wage increase. For these reasons and more I feel like this is a good opportunity for me is I am willing to take risks to grow faster than average. I don’t desire to be rich, but I do have my idea of what an ideal lifestyle is.

Please keep an eye out for my future posts where I will give you a monthly report on how I am doing with my multiple investments. I look forward to teaching you what I know and transferring lessons learned to you. I would love to hear about the non-standard investments you made so please comment below and let me know what you are doing to participate in the lifestyle that you want.

Disclaimer: I am not a financial advisor therefore I recommend you meet with an advisor before making any investment decisions. The results documented are the result of my investment strategies and your results may vary.

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