Think of 2 scenarios in which you start out with $50,000 to trade.
In scenario A you work and make $100K/yr, pay $30K in taxes, put $10K into your trading fund and trade once per year to adjust your portfolio.
In scenario B, you don’t work, you just trade, trying to turn the $50,000 into $70,000 in after-tax profits that you have to live on, pay taxes on, and use to increase the value of your trading fund, AND earn profits in excess of the growth achieved by the 50K of investments. Good luck with that.
The scenario changes dramatically if you are only employable as a $20K/year worker and you have $1,000,000 in your fund. Even then, can you really do better than the market by 20K with the time you spend?
Remember – you don’t have to earn SOME money with your trades. You have to earn more than you could earning a salary plus what you can earn with the investment funds in a less time-consuming investment plan.
