My mission is to help people build financial independence to enable them to escape from corporate slavery and live their dream life through trading profitably. To achieve this I guide people to build a trading income that requires very little effort to maintain.
Why build low maintenance trading system?
For me this is not just about earning enough money to survive. I am far more interested in how time efficiently the money is earned. Consider these two situations:
1. A trader (Mary) develops an excellent day trading system that requires her to sit in front of the computer screen all day placing trades and managing positions actively. Mary makes excellent returns in the vicinity of 20-30% per year on average and rightly considers herself to be an accomplished full time private trader. with an account size of $300k there is a good chance that Mary could begin to support herself while also gradually building her account over time. At this point Mary quits her day job and becomes a full time trader. Mary is thrilled because she is now her own boss and she doesn’t have to suffer from corporate slavery any more.
2. A second trader (Jane) develops an excellent long term trend following system that requires about 30 minutes of active work each day to maintain. Jane makes around 200 trades a year at most and many days she does not need to take any action other than moving her in market stops. Jane also achieves excellent returns of 20-30% pa and considers herself an accomplished trader. With an account size of $300k Jane could consider supporting herself with her trading which is very time efficient and allows her ample free time during the trading day to focus on other things that she is passionate about, building other income streams AND building additional diversified trading systems.
Now if you compare Mary (trader 1) and Jane (trader 2), who’s shoes would you rather be in? Lets work out how efficiently they earn their money:
Mary has a $300k account, earns 30% pa on average, has to ‘work’ by sitting in front of the computer for the 6 hours a day that the local stock market is trading for about 220 trading days per year. This would equate to earning about $68 per hour on average. Mary is pretty happy with that because she used to get paid $40 per hour for her job…but that is because she hasn’t read this website and she hasn’t met Jane…YET
Jane has a $300k account, earns 30% pa on average, has to ‘work’ her trading system by sitting in front of the computer for just 30 minutes a day for probably only about 70% of the 220 trading days in the year. The other days Jane does not get any signals from her system so she doesn’t have to do anything. This would equate to earning about $1168 per hour that she works on her trading. Jane is obviously ecstatic because she could never hope to earn money that efficiently working in a normal job. She also has most of the day to do what she wants while Mary is stuck looking at the computer screen running her day trading system.
If you are anything like me then the decision is easy – life is for living, not for sitting in front of the computer. I have no interest in swapping a corporate job for a trading job that requires me to sit in front of the computer trading all day. So I developed a trading program that takes about 30-60 minutes a day to execute, and the rest of the day is mine to spend how I see fit.
Please note that the point of this is not to push one trading strategy over another. Of course you can day trade if you want… But you better really know that you want that life. It is surely not for me!