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Ask HN: How do I turn 100K into 1 million?

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Re: Ask HN: How do I turn 100K into 1 million?

#61

Post by mynameishere »

arthurdent wrote: post #55
mynameishere wrote: post #50

Then AOL ran out of capacity and I was back to my 700 bucks after paying about 200 in commission to Bear. How did you pay 200 dollars in commissions on a 700 dollar trade? How did you find work at an investment bank without being sufficiently savvy to realize that buying options on a credit card and then paying a gigantic commission is an absolute, guaranteed way to lose money over time? I'm genuinely confused here.…

How did you find work at an investment bank without being sufficiently savvy to realize? Is this deliberately intended to be disparaging? 1. There are plenty of people at investment banks whose principal function isn't to understand options. 2. What makes it so clear that buying options is a "guaranteed way to lose money over time". At any rate, the only people profiting on derivatives are the market makers. And even…

What makes it so clear that buying options is a "guaranteed way to lose money over time".

Derivatives are mathematically zero sum minus costs. That's why. For traders in aggregate, they are a certain loss. Tack on leverage via credit cards, well...

Is this deliberately intended to be disparaging

Sort of. The guy needs to realize that he's capable of really stupid mistakes before he opens that fresh new brokerage account. 700 dollars is obviously nothing, but should be a valuable lesson, and not an optimistic one.

Re: Ask HN: How do I turn 100K into 1 million?

#62

Post by joelreymont »

lowkey wrote: post #40
joelreymont wrote: post #15

Earlier quoted context omitted.

Some of that already exists, check out the App Store. I'm thinking an iPad would make a decent chart plotter, though :-). Now, if I could only find a weather-proof enclosure!

Here is one option for a water-proof iPad enclosure, though I'm sure it can be improved upon: http://gadgetsin.com/waterwear-waterproof-ipad-case.htm

Looks great. Need to figure out whether the built-in GPS is good or how to connect an external one.

Re: Ask HN: How do I turn 100K into 1 million?

#63

Post by stcredzero »

rjett wrote: post #47

Invest in adderall and see where that takes you. Joking. In all seriousness, drop the desire to turn 100k into 1 mil in x amount of time. That will lead you into wreckless, speculative behavior. Trading is tempting for you because it offers instant feedback. With one or two successful trades, people tend to extrapolate their returns into future returns, believing that it's possible to repeat these trades over and ove…

Seriously, my best friend has had fantastic results from adderall. He feels like he can get things done 150% as well as he used to, and I agree from watching and listening to him. He's a self employed HVAC contractor, but I think some of the same factors might apply.

Re: Ask HN: How do I turn 100K into 1 million?

#64

Post by joelreymont »

dean wrote: post #45

"I rent but paid cash for a recent BMW last year" One tip I can offer is not to do things like that. A house or condo is generally an investment that increases in value, so you should buy that for yourself instead of buying it for your landlord. And paying a lot for a car that will be virtually worthless in 10 years won't help you achieve your goal.

Umm... I forgot to mention that I'm still an illegal alien :). My wife received her residence just last year so the BMW (1.5 y.o when bought) was really a gift to her. Plus, I really wanted one after driving the 2004 Fiat Punto (no air conditioning!) for over 2 years.

I still have the Punto and hope to get a residence this year. It's an 80% mortgage when I do and 50% while I don't so I'd rather wait.

Re: Ask HN: How do I turn 100K into 1 million?

#65

Post by javery »

yoseph wrote: post #5

"Trading" is not the answer. "Investing" is. Read The Intelligent Investor and Security Analysis, both by Benjamin Graham; and F Wall Street by Joe Ponzio (His website fwallstreet.com also has a number of gems. Particularly, his post about how to value a business http://www.fwallstreet.com/article/25-calculating-the-value-... ) If you read those materials, you will learn how to invest and using the approaches set out…

To illustrate this point around the same time you were trading those Apple options (2006?) and not making any money I made a straight stock purchase of Apple at $73.25... its up 263% since then.

Re: Ask HN: How do I turn 100K into 1 million?

#67

Post by joelreymont »

ahk wrote: post #48

Given the probability that you will not actually make a million, I think that this is a false goal that will only lead to frustration. My plan is to utilize my savings, after having got out of the 10 year rat race, to do something I enjoy (that also has a fair chance of being big). If it turns out that I make a million, well and good, if not then atleast I've been enjoying the money instead of leaving that to after r…

I have a very understanding family and my wife works lightly while she babysits the younger daughter. I think I can still manage to accomplish something.

Re: Ask HN: How do I turn 100K into 1 million?

#68

Post by joelreymont »

mynameishere wrote: post #61
arthurdent wrote: post #55

Earlier quoted context omitted.

How did you find work at an investment bank without being sufficiently savvy to realize? Is this deliberately intended to be disparaging? 1. There are plenty of people at investment banks whose principal function isn't to understand options. 2. What makes it so clear that buying options is a "guaranteed way to lose money over time". At any rate, the only people profiting on derivatives are the market makers. And even…

What makes it so clear that buying options is a "guaranteed way to lose money over time". Derivatives are mathematically zero sum minus costs. That's why. For traders in aggregate, they are a certain loss. Tack on leverage via credit cards, well... Is this deliberately intended to be disparaging Sort of. The guy needs to realize that he's capable of really stupid mistakes before he opens that fresh new brokerage acco…

1995 was 15 years ago. I advanced a bit since then.

Re: Ask HN: How do I turn 100K into 1 million?

#70

Post by joelreymont »

kadavy wrote: post #66

Blog about your quest to turn 100k into 1 million. Lots of people will read it, the advertising potential would be strong, and - if you're successful - you could write a book about it.

Thanks! I think it stands to have more success than the Erlang book I never finished :D.
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