Archive for May, 2006
Sorry about the site being down for a while today. I updated WordPress (the blog software) and accidently uploaded an index page I played with a while ago. I guess my server is setup to show .html before .php. The site should be running great now.
As I may have mentioned before, I took on a lot of debt to start my investment career. I maxed out the majority of my credit cards doing balance transfers and the like. While this has worked out well for me I don’t recommend doing it. I estimate about half of the money I used was lost to poor investments or scams. The other half has been performing quite well and is slowly making up for the lost half. However, in the mean time I have a significant amount of debt and a low credit score. When I initially entered into debt my credit score dropped 100 points in a month and has gone down more since then.
Don’t you hate it when you spend 10+ minutes typing something and accidently delete it all? That’s what just happened to me. I had a pretty long entry written out and tried to hit Ctrl+T to open a new browsing tab. Instead I hit Ctrl+R and reloaded the page. I lost the entire entry. Now I have to retype it. Grrrr…
In: Driving, Health & Fitness, Philosophy
Other than 2 finals I have this coming week, school is now out for the summer. That means I can concentrate on trading, investing, and speculating. May options expired on Friday and I took full advantage of it. I sold covered options on Wednesday and Thursday and managed to make over 11% return on my entire account after broker fees by the close of the markets on Friday! I can still count the number of trades I’ve done on one hand so overall I’ve been doing very well. I’ve only had one small losing transaction. Overall my account is up 16.25% after fees. Did I mention I’ve only been trading for 1 month? I still have one more open position. Assuming the market doesn’t go up more than ~7% in the next month (very unlikely) my total gains will be almost 19%.
I’ve been doing some thinking and some math. I’ve figured out that I can have $1 million in 5 years if I start with $25,000 and earn an average return of 6.35% per month (76.2% per year), compounded monthly. I believe this is achieveable since I’m already earning more than that. If I reach that goal I’ll be a millionare before I turn 30.
My investments are rapidly approaching $25,000 so I’ve almost met that goal. The problem is that I’ve been living off of my investments. If I continue withdrawing enough to pay the bills I won’t be saving enough to reach that goal. This leaves me with a few options.