bull stock market

Adventures in Stock Trading #1

Now that I closed out of my TRXC position after holding it for a year and a half, its time to get back to stock trading and doing it right. I’ll detail the first three trades that I made here, and the techniques I’m using to protect myself while looking for an opportunity. I can definitely say that having money in…

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Building Farm Truss Farmhouse Fachwerkhaus

Mortgage Before Investments

Pay off the mortgage or invest your savings in the market? If there was ever a ninja vs. pirate debate in the FIRE community it’s this one. My foray into the debate is inspired by another article on the subject posted on a blog called Their Money Goals. The authors argued that comparing the inflation return on a house of, say,…

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Stock Trading Success

Let the Trading Begin

The clouds have cleared and the great weight is lifted. The worry is gone and bright days are ahead. I’m not talking about the weather, but my own mentality.  What is making me so happy? I finally closed out my largest stock position. I had gotten into this stock in October/Nov of 2016, should have gotten out in October 2017,…

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The Thinker by Rodin

Stock Trading Basics – Mental Management

Here is a question for you: if you think with your mind, how can you control it? It’s kind of like grabbing a ruler to measure a board of wood and the ruler grabs you back.  And how can you measure the wood when the ruler that is grabbing you back is also sawing away at the end of the…

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Stock Trading Basics – The Mindset

Trading stocks is hard. You need to guess the right stock, the right price, and the right direction in order to make money. Options are even harder, because the contracts come with an expiration date before which your prediction must come true. That’s four obstacles you need to overcome in order to get ahead. In truth though, there is a…

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Stock Trading Basics – Risk Management

As discussed previously, when it comes to trading stocks the second most important thing after having a basic framework for understanding value and trends in the market is practicing sound risk management. This is because trading, like all human endeavors, does not follow any sort of strict physical laws. Not only is price influenced by emotions like fear, greed and…

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Dartboard

Stock Trading Basics – The Framework

There are three things that are crucial to financial independence and early retirement: making money, saving money, and managing investments.  Yet if there is one method of making money that is scorned and rarely talked about in the FIRE community it is stock trading.  Many people pore over different stock investment strategies, i.e. maximizing 401ks and IRAs, snowballing with dividend…

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