VTSAX Millionaire Journey #5: $75,656.75
I receive a lot of emails and I actually answer them all. In fact, as of this post, I have answered 606 emails, 1037 comments and helped or saved 106 people from my 1 on 1 Skype sessions. Yesterday I received an email from someone who asked a really interesting question. What made it interesting is that he was questioning why I am not focusing all my attention on day trading. Out of all the emails I have gotten thus far I have never been asked that. So, I would like to present the email that was sent to me and my response that I sent back as the basis for this month’s millionaire journey.
Here is the email I received.
I can’t imagine the amount of emails you receive so I will keep it short. With the amount of experience you have and doing the millionaire challenge… I can’t seem to undrestand why you not be 100% focused on day trading. I have only been trading for about 1 month and a half and have gone from gaining +$2,000 to a total loss of -$800 now. But I am gaining it back slowly by studying more and not becoming overconfident. So my question to you is why have you stopped making day trading as your main focus, but instead focusing on other means of income? I know day trading is a gamble but if you study enough you can easily have a 70% success rate or more in my honest opinion.
Thank you for your time and all of your help,
Here is the email I sent him back.
This is a really great question and I am going to use your email as the basis for my next monthly millionaire journey post which will be out tomorrow.
First let me say that I appreciate the time you took to reach out to me. You are my 603rd email I am answering over a 3 year period so thanks for going easy on me with the questions. 🙂
I think the best way to answer your question is to point out your journey and all the opportunities you might be losing out on by not pursuing other avenues of income as well.
If I may be so bold you were up $2000 and now you are down $800 which means you lost $2800 in approximately a 6 week period. How long do you think that will take you to get back to breakeven or do think you might lose more before getting on a consistently profitable road? For all intents and purposes let’s assume it takes you another 6 weeks to breakeven. That means that over a 3 month (1/4 of the year) period you are 100% back to ground zero. During this time what are you doing to make money or how are you sustaining yourself? 3 months without an income, or opportunity cost, is the exact reason I start this millionaire journey.
To be brutally honest there is a slim chance you will survive in the market. Just ask Joe Campbell. Don’t get me wrong in no way shape or form do I wish you ill will in the markets and I am rooting for you but the possibility of not surviving should not be taken lightly because the odds are stacked against you more than you can imagine. Trust me I haven’t taken it lightly at all. In fact, I took it so seriously that I made sure I kept my focus on areas where I knew I could make good money just in case.
My blog, my photography business and my trading all make me money and bring with it experiences that feed my soul. I wouldn’t change that for the world. I even make money as an actor but don’t usually blog about that much.
And whether you agree or not trading can be very boring and when you are losing money it’s down right depressing.
So, before I wrap this email up let me just say that it’s time You become smarter with your finances and think about the bigger picture unless your trading profits are enough to make you happy. You might one day find you are able to make a good living in the stock market by just focusing your attention there but let me remind you that Mr. Millionaire Challenge has many sources of income and trading is far from what is bringing in the most money.
Be smart and trade wisely!I hope I have answered your question.
Anyway, that was my response and I am sticking to it. 🙂
Here are the numbers for this month.
I was able to add in $4293.94 to my VTSAX position for the month of May. That number is a combination of income, trading, dividends, capital gains and option money.
There is now a $4,329.85 investment return since January 10th 2017.
If you want to read more about VTSAX please read my article which was published on Seeking Alpha.
To wrap things up my Vanguard Total Stock Market Index Fund total is now $75,656.75. This journey is a financial journey and not a day trading only journey. If you happened to be 1 of the few who are actually reading this far down in the post then be smart and make your money in the various ways You can. Don’t limit yourself to just trading unless you become the next Jesse Livermore. However, let me remind you that even Mr. Livermore, who committed suicide, lost his fortune 4 times over the course of his life.
Would you like to be #607 on the emails answered list? Reach out to me here.
Until next month.