There are many changes, MASSIVE changes I made to my life both in investing and outlook in life.
Outlook in life
I just came back from a short break, a break that was long due. Cleared my mind and I can see things really clear now and those around me, who advised me, thank you so much.
I have been putting into practice what I learn. Many nights, hours each night practicing, studying, analyzing, many questions posted all over the internet and tons of determination I'm clear on my future strategy.
- Risk management - Max lost of 10% of my capital in a recession.
- Investing safely
- Consistent income
3-5% a month, compounding to at least 30% a year.
- Making this my retirement plan
The problem, even owning a fundamentally strong stock, your max risk is still 100%. Most of my friends investing with me would agree with me as I'm sure they have been caught in many situations. I learn during my 2 years of investing journey, $$ management and risk management is most essential in safe investing.
Right now, I'm slowly moving all my funds from stocks to options. It will take time. Why do I use options? I'm sure you heard, and even MAS classify it under "high risk" derivative. Well, if you know how to use it properly, I assure you it's safer then owning a stock. The problem it's very complex, on top of the theories I learn, I needed to apply them with real $$$ to understand it better. I needed to understand time decay, intrinsic value, time value, delta, theta blah blah blah... On top of that, I needed to combine many different styles giving a combination of more then a 1000 ways to play. I'm not afraid of hard work, I'm only afraid to lose $$. That's my driving motivation.
Having said all those, I will need to take down my live stock holdings, as I won't be owning any stocks soon. I apologies for that. For those who are interested to know what I'm doing with options, you can personally contact me, I will be happy to share.
So far I been doing quite well, 3 trades and all 3 trades ROI was close to 50% =) I can't wait for the recession to occur as I'm sure while many will be losing lots of $$ and just holding on to their stocks till it recovers few years later, I will be smiling and see what I learn does work. My retirement plan is on track. and I will retire at 40, no later.