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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New Year’s Resolutions 2018

With the New Year coming up, its time to think up resolutions for how being a better person next year. Some people dislike making resolutions as most are broken in short order, but since I still complete 30-40% of mine on average, I’m still a fan.  I have found over the years though that the fewer you have, the more…

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Monthly Update

We’ve been in sub-zero weather for a week here in Minnesota and I finally make my reappearance. My apologies for the slow posting period; for a variety of reasons I haven’t been on the computer much.  First, I was striving towards my goal of reading as many books as possible this year (with a new all time record of 66!),…

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Monthly Update

Time for another monthly update! This month hasn’t been as good as the previous ones (if only that trend would continue forever!), I’m still plugging away and making progress at paying down my debts. My equity wealth dropped this month about $20k due to the main stock that I’m invested in.  While the stock boomed in mid-October, the price dropped…

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You are a Badass at Making Money Book Cover

Book Review: You are a Badass at Making Money by Jen Sincero

There are various schools of thought in the personal finance literature. Some focus on practicing frugal living, some on obtaining assets for passive income, and others still that emphasize stock portfolio balancing.  One branch stands apart from the rest in that it focus on your personal mindset.  According to this school of thought, the biggest obstacle to becoming wealthy is…

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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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Monthly Update

It’s been another great month at the FIRE household.  First, a stock that I have a great deal of money in went up another 52% from the 30% it increased last month, growing the position value from $57.8k to $121k. I don’t foresee such great returns in the future, but in another week I will have held onto the stock…

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Book Review: The Richest Man in Babylon by George S. Clason

Why does hard work come to nothing? This is a question that has plagued mankind since people realized that they could not have everything they wanted in the time allotted to them. It is also the topic of conversation between Bansir the chariot builder and his musician friend Kabba in George S. Clason’s work “The Richest Man in Babylon”. They…

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A Financially Sound Country

According to a study done by Bankrate.com, barely 6 in 10 Americans can afford to write a check for $500 and barely 56% of people have more than $1000 in their checking and savings account combined [1]  Another survey found that 1/4 retirees has zero savings and only 20% have more than $300,000, a figure still far below what experts…

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Adventures in Life Style Design (pt. 1)

Lately I have been reading Tim Ferriss’ 4 Hour Work Week (of which I will write more later in a book review) and was inspired by his rendition of the  Pareto Law and Parkinson’s Law. The former states that 80% of results come from 20% of causes, and the latter that the importance and complexity of any tasks grows the…

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