Saturday, December 16, 2017

Potential options and thoughts.

with a few beers in me I am able to easily see that last nights post and the feelings surrounding them are based soley on the lack of progress I am feeling due to the financial undertaking that I set out on with trading. Yes, I acknowledged that in the previous post, but I say that because it has caused me to wonder how I would be feeling about my life without that concept at all. Would I love my life and be happy right now because I have about $50k of essentially free money just hanging out waiting for me to claim it, on top of the fact that my job is easy as hell and I love my wife and home? Probably, is my guess.

Today Stacey and I started watch the Anthony robins thing on netflix. It was a nice time until our moment got upended by visitors I didn't expect back so soon.

A few hours ago I went over the two possible options available to us if the currency investment pans out nicely and we take huge profits.

Assuming we get out and have $80k net profit after taxes, there are two options I see.


  • put that money down on the house and lower the payment and thusly our financial obligations.
  • Put that money in the Commodity markets, (Orange Juice, Corn, Wheat, etc...) of which I have been dying to do since I was 15 years old, and wait patiently over years for our money to grow with basically a guarantee..
If I pay down, or pay off the house, then the pros are that our financial obligations are minimal and we can save a tremendous amount of money every month. The con to that is that we cannot really grow a sizable amount of money because obviously, it will be in the house. If we put that money in the commodity market though, say $80k, then we can control 5 contracts of Frozen Concentrated Orange Juice, which has been my commodity of choice from the beginning. Hypothetically, if we buy 5 contracts of 15k lbs of OJ at $1.00/lb and it goes up 60 cents, that will be a $45k profit. that could take a few years of course, but a guaranteed growth is so much better than a possible loss of everything. If that 60 cent profit is realized, and we reinvest the new balance of $120k again making 60 cents of profit, that would equal a gain of $72k... That's fucking crazy. The new balance (excluding taxes) would be $197k. Reinvesting that with 13 contracts would give us a profit of $117k on another 60 cent/lb move, to bring the total balance up to over $300k.... in just 3 fucking trades.  Which yes, could take several years, but can you believe that? It sounds too good to be true. 

And all this time, we could still be learning the markets and trying to be successful penny stock day traders. It''s the best of both worlds besides the fact that I'd still be working my ass off to pay the mortgage every month. However, if for any reason we really need the money, we could liquidate part or all of the position and use that money on the house. It is something to think about regardless. The amazing thing is that I am fortunate enough to be in a position to even be considering this crazy shit. 

Bitcoin hit $19,377 today... Litecoin and Etherium both look like they are about to breakout to new highs AGAIN. 

The serious question I might need to be prepared to ask is: Would I rather pay off/down my house, or make a guaranteed return of several thousand dollars over time on that money, while still having the obligations of working and paying what I am paying?


No comments:

Post a Comment