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Tuesday, August 4, 2009

Airelon's "Time Line"

Some time ago, I was corresponding via email with someone that shared their "time line" with me. In other words, how they had been doing financially over the course of the last few years. Major events. Setbacks. I could sense a bit of, shall we say, frustration about the rate of progress?

So I figured that the best way to encourage someone? Was to share a "time line" of someone who did well, but progressed more slowly than they had. Thus, I then shared my own personal "time line"

Here it is, and hopefully, it can encourage the small retail traders and investors who are slowly but surely struggling to get ahead ...

1996 - Got married, started trading. Blew $3,000 in the first two months, thus blowing up the account. I was still dreaming of yachts.

1997 - By mid year, I had blown up two more accounts. Anywhere from $3,000 to $2,5000 per account. Accumulated probably near 50k in credit card debt after getting married. I probably would have been stupid enough to buy a house during the coming housing bubble if I wasn't already sunk into a debt quagmire.

1998 - I heard about some Larry Williams guy. Started trying to pay down absolutely impossible debt - and understood what I had done, but much too late. Still blowing up trading accounts to the tune of $3k a piece. Thank god I had a nice job for this lifestyle! I was working at E.D.S. at the time.

1999 - Started listening to something called "Money management"? Still trying to pay down absolutely impossible debt. Interest raping me at this point on the credit cards.

2000 - Creditors, although I'm paying them back? Are starting to yank money out of various accounts I have. Blew up account again, but this time, I'm noticing that on the trading front? I'm making real headway, and the blowup was due to a mistake where I knew better. But as I mentioned in that entry, I was so discouraged after 4 years of work, I stop trading.

I start looking at dividend investing, but don't pursue it.

2001 - I have to declare Bankruptcy. Trying to pay back the debt, and it just wouldn't work. It couldn't work. I could make $100k a year, and it was just treading water. So before I do that, I naturally take all of my brokerage accounts that had some money in them to $0.00

2002 - I start looking at investing. Started investing at JUST the right time, based on pure luck. :) I had experienced so many losses in trading, I didn't trust the success I was having at investing. So I started to look into economics.

2003 - I started Trading again. One more big loss that really, really hurt, but now it's a case of "one big step back, 5 small steps forward" and money management is really starting to pay off. That mistake cost me dearly, but I now understand what it was that caused the problem. I ignored risk management. So I begin to now add $35.00 a week to my trading accounts, in addition to my base capital. I begin to develop my "three sisters" portfolio management system.

2004 - Trading and Investing starts to take off. About 60% invested at this point, 30% trading, and 10% savings.

2005 - Things are looking up, but I was struggling, since I began from the low funded position. Just having to be patient.

2006 - 2009 - I still tried to work part time as an audit control officer, but finally left after only a few months in 2006. As time passed, I didn't need the money, and my success with trading and investing was actually affecting my work ethic, so I left.

The rest is public history. 2006 was in many ways, a "hump". Then later in 2006 I made a move that I think gave my wife and I an 'emotional boost' to our social support system. It's a move that I think helped buttress my trading and investing successes - as it led to a 'healthy emotional environment'. We've been loving every day since then.

Now do you see why those who are low funded and in a bad way financially are near and dear to my heart?

So if you are in the low funded position? Remember that these things take time. And that progress? Is just that. Progress.

Hopefully, you all do not have the debt that I managed to accumulate for myself in the beginning, as debt is the easiest way to slow down your progress. But I firmly believe that by paying debt down quickly, and with a firm hold on Money Management Principles ... you can do it.

* * *

Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 13 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.

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