Few questions for FIREd folks

[loulou1]

@resjudicata Check out Interactive Brokers. I have heard from few friends that they are good for algo trading -- both API and brokerage wise.

The "tool" will be generating calls based on buy/sell "strategies" that I have put together. I am in the process of testing my buy strategies. Then I have to test the sell strategies. It is going to be a long haul ... at least another 3 months before I do some manual trades with real money. Way I see it letting it run on its own is still 9 to 12 months away. I doubt the tool will be "open sourced" but I am "open" to working with like minded people Right now it just too early to comment! But I am excited about this new project!

 

[resjudicata]

@loulou1 Thanks hapuchu. You are a shining light on this r/indiainvestments

 

[steelernation]

@loulou1 All the best for the new project, sounds very interesting!

 

[realmajor101]

@loulou1

because I love what I do, it does not seem work to me

Now that is a universally accepted fact and I am glad it works out so well for you!

However I, personally, have a different take on this w.r.t. FIRE. I also love what I do, when I do, where I do or heck [for prolonged periods at will] even if I do, so I guess there's no real need for me to FIRE in traditional sense. But my ultimate goal is being able to do what I do without relying or caring about monetary affairs or impact at all. The idea of monetary sword dangling over my head, no matter how far but in sight, is not very appealing to me. I intend to reach a stage where if I am mentally or physically challenged tomorrow in some perverse way that no longer makes it feasible for me to do just what I specifically love to do then it doesn't become a cause to extinguish my FIRE.

Now I think my txns falling inside STCG will increase as the diff between LT and ST is just 5%

Take care then to not tempt the taxman demanding 30% tax instead by tagging your activity as trading business instead of investing!

 

[loulou1]

@realmajor101 You are right. When people ask me for "tips" on FIRE, I ask them why they want to do so. Are they unhappy with what they are doing? Are they missing something in life? In most cases people are happy with their job and life, in which case I tell them, please continue what you are doing. Some ups and down will be there in all jobs and we should dig our heels and stay put and improve!

Currently I think that, "I would love to have so much corpus that I can make my post tax salary by just putting that money in a 7% FD". But that day is far away. It is very much possible that I might not do it when that day comes. Can't say much about the future ...

Take care then to not tempt the taxman demanding 30% tax instead by tagging your activity as trading business instead of investing!

I think I don't do that many transactions!

Edit:

Btw, most people I have seen have no other interest except work. In fact they miserable when they are forced to retire! One thing I tell my kid is, on her first day of work she should think about what she will do if this job was not there from her.

 

[realmajor101]

@loulou1

I think I don't do that many transactions!

I gather from your other comments that you are getting into trading. Which segment - cash or derivatives?

 

[loulou1]

@realmajor101 I was planning on doing long only cash and carry trades. But that will depend on if the system that I have created functions in a profitable fashion. Testing will continue for 6 months or so.

 

[realmajor101]

@loulou1 Unless one is in a position to take advantage of both rising as well as falling markets, long-only trading feels more like participating in a race with both your legs tied together.

Anyways, so InvestR will now possibly be followed by TradR or something, eh?!

BTW how's the traffic on InvestR? Are you open to the idea of monetizing it in future or is that a strict no-no?

 

[loulou1]

@realmajor101 I agree. A true trader should try to make money both ways. But then I am not a blue blooded trader! This is just a project for 2018. Funds allocated to it will be less than 3%. I have no idea how it will unfold. (Current system has been created so that it can handle short calls if I decide to generate them.)

InvestR is doing okay. 1000+ registered users and 50+ daily users. I run a donation drive during this these months from the users to help me pay the hosting fees. I get 6-7K from kind hearted people that helps me cover 80% of the server fees. I don't want to run advertisements and it is not at a stage where it can become a paid service. So my monetization options are pretty limited!

 

[realmajor101]

@loulou1

But then I am not a blue blooded trader!

Well, nobody is born as such. As they say, what doesn't break you makes you stronger. I'd say it applies to the market as well. If you don't allow trading to break (financially bankrupt or psychologically affect) you [by implementing a proper risk management system], you only get better at it with time.

Meanwhile pretty impressive numbers you got there for InvestR! I have a hunch that most of your user base is tech-savvy bunch from Reddit type forums and not the usual search engine crowd. Most of them would be using ad-blocker anyway and on top of that possible backlash from advertising may bring more harm than meaningful revenue. So, yes, ads may not be the best way for you to go about it. The paid service idea may however work. I guess you can experiment with harmless pay-what-you-want type pricing for some premium feature(s) to begin with.

 

[valera]

@realmajor101 1.27
2. Forever is the goal.
3. ----
4. None
5. Don't own a house. I stay with my folks
6. ----
7. I get this a lot. I tell them that I day trade
8. ----
9. Risk Management

 

[realmajor101]

@valera Hmmm... you've skipped the questions which might have shed some light on how your FIRE is kept burning. So, should I assume that the major source of your current income is day trading itself?

 

[valera]

@realmajor101 Yes