FREE Trading tips and strategies for retired people wanting to preserve and grow capital
Are you close to retirement or retired? Do you wonder if you could trade the market yourself and do better than average? Then perhaps this site will help. If you are trading now, I hope to offer fresh ideas having learned a thing or two (some the hard way) over the years.
What is the purpose of this site?
To filter out the clutter and provide down to earth trading information and advice as it relates to after retirement traders.
This site is NOT for people wanting to score big day trading. It is for people like me clinging to my capital, trying for a reasonable growth and trade because it is very interesting and challenging.
I also want to review and recommend trading tools and brokers. Over the years I have been with several brokers and used a number of trading tools and software. There is so much crap out there it is no wonder day trading has a bit of a bad reputation.
You will find articles that cover the basics of trading and more advanced material.
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Note: Everything you ever needed to know about trading is available for free on the Internet. There is nothing new. Trading has gone on for centuries. Basic principals have remained the same. So yeah.. I might be rehashing well know observations here but adding my own use of them. You might see a few things that should work but don’t. Trading should be fun and reasonable simple. The important thing is preserving capital while making a profit. Like any business. If you treat it like a mini-business and enjoy it, it will be worth it.
Should I Trade After I Retire?
That depends on a lot of things. Mostly financial. Do you have some capital you can afford to lose if the worst should happen? Do you have the skills needed? Would you be able to trade using proven strategies and leave the emotions out? Trading can be very profitable. A reasonable good trader can easily return 20+% on his capital annually. And by compounding, it can grow faster. BUT – all trading can, and will result in some losses. Also you need to determine your reasons for wanting to trade. Is it because it is exciting thing to do and a challenge? To earn income from your capital, or maybe just to grow your nest egg. Those are the things you need to consider.
Why Trading Yourself Can Be a Bad Idea
You are a smart person. With time on your hands, and a few bucks in the bank you could “play” with. You might even be bored and need something to keep you occupied. Millions of retirees manage their own portfolio and enjoying the control it gives. And the excitement of making right decisions. And sure – the disappointment if a trade goes against you. But overall, trading can be a very good thing. However, there is a difference between experienced professional traders and us “retail” traders. One significant difference is what one does when the market suddenly drops 10-15% as it is doing at the time of writing. (March 10, 2020). Pro traders will buy into strong when the prices are low – most retail traders stay on the sideline until the market comes back up. Leaving a lot of money on the table! A raising market is exciting. A dropping market – not so much.
The other difference is simply that most retail investors are “buy and hold” folks. Professional traders get out when a certain profit or loss level has been reached. A basic rule is that your profit target is AT LEAST 2-3 times higher as your stop loss level. If it is twice, you break even by being right 50% of the time. If you make a 60% success rate you make money. This takes practice and skill and a bit of steel nerves.
How Much Can I Make Trading in Retirement?
This is a complicated question but here are some thoughts: It depends on a couple of things:
- Your available capital
- The fees you pay your broker for each trade
- Your knowledge of the market and trading strategies
- Your discipline to treat trading as a business
- Your patience.
Given a reasonable positive answer to those questions – there is no reason one cannot return 1-2% of capital a month averaged. Trading is a very fluid animal. And yes, of course it is risky. A good trader will try to reduce risk as much as possible. And increase the probability of a trade as much as possible with the information available.
It also depends on your needs. If you need to take profits out of the trades – that is ok of course but then you cannot expect to increase your capital. If you trade to increase capital – then you will enjoy the exponential growth because the higher the capital the more you can put in per trade.
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Disclaimer: The information in this website is for educational and informational purposes only. The content is not presented by a professional, and therefore the information here should not be considered a substitute for professional advice. Always seek the advice of someone qualified in this field for any questions you may have.