Investing in Stocks to Make Money and Live Abroad

[Guhji]

I made a post following the election in 2016 to get long the market breakout. It looks like the market(SPY) is going to break out to all-time highs again after correcting in January and consolidating therafter. In fact, the triple Q's have already broken out to new highs. Trump maintains a very pro-business stance on his policy decisions. Tax cut part 2 appears to be in the works. Regulations continue to be cut. The market seems be unworried about possible trade wars and higher interest rates. I think, as long as Trump remains healthy (he is 72 after all), the market environment could be very bullish for years to come. I welcome other thoughts and opinions.

If you have over 25K you can open an account with Interactive Brokers. I wouldn't suggest trying to trade with a smaller amount. Search youtube for Warrior Trading. Ross Cameron is legitimate. Daytrading has a near 90% fail rate, but if you're talented enough to make it, you can do very well for yourself. You won't know unless you try. He makes several hundred K per year trading. If you made even a tenth of that, that might be enough to support your international lifestyle. No boss, no need to teach English, complete autonomy. I am not affiliated with him in any way.

[Contrarian Expatriate]

I made a post following the election in 2016 to get long the market breakout. It looks like the market(SPY) is going to break out to all-time highs again after correcting in January and consolidating therafter. In fact, the triple Q's have already broken out to new highs. Trump maintains a very pro-business stance on his policy decisions. Tax cut part 2 appears to be in the works. Regulations continue to be cut. The market seems be unworried about possible trade wars and higher interest rates. I think, as long as Trump remains healthy (he is 72 after all), the market environment could be very bullish for years to come. I welcome other thoughts and opinions.

If you have over 25K you can open an account with Interactive Brokers. I wouldn't suggest trying to trade with a smaller amount. Search youtube for Warrior Trading. Ross Cameron is legitimate. Daytrading has a near 90% fail rate, but if you're talented enough to make it, you can do very well for yourself. You won't know unless you try. He makes several hundred K per year trading. If you made even a tenth of that, that might be enough to support your international lifestyle. No boss, no need to teach English, complete autonomy. I am not affiliated with him in any way.

I've had skin in this game for over two decades now and I can tell you that I am moving away from stocks until there is a cyclical bear market that is long overdue.

Day trading is a fool's game given the fail rate that you correctly cited. SWING TRADING is the better way to go so long as you use monthly paying dividend stocks or ETFs to get paid while you wait out a rebound. Day trading deprives you of that.

If you have 25k, I would encourage younger guys to invest in crowdfunding equity like Fundrise and other regulation A+ platforms which are essentially quasi hedge funds that are now open to everyday investors thanks to the JOBS Act passed a few years back.

Use your saved cash to generate continuous cash flow. That is how you want to live abroad.

[aspiabc]

I made a post following the election in 2016 to get long the market breakout. It looks like the market(SPY) is going to break out to all-time highs again after correcting in January and consolidating therafter. In fact, the triple Q's have already broken out to new highs. Trump maintains a very pro-business stance on his policy decisions. Tax cut part 2 appears to be in the works. Regulations continue to be cut. The market seems be unworried about possible trade wars and higher interest rates. I think, as long as Trump remains healthy (he is 72 after all), the market environment could be very bullish for years to come. I welcome other thoughts and opinions.

I think the SPY looks like on a good track to at least approach the previous high back in January at this point for the next month. However, I don't know about the rest of the year and after. The big bear correction seems like it should be happening sooner than later. Perpetual low-interest rates seem to fuel the trend of too many firms buying back their own stock. My 2c anyway..

[Guhji]

Well, I made a career out of daytrading so it's possible to a make a living at. It is very difficult, but what isn't? I didn't think many of the posters here had the cash reserves to swing trade for a living, which I is why I didn't suggest it.

I do have some to money to invest, so I'll take a look at your suggestions.

[Contrarian Expatriate]

Well, I made a career out of daytrading so it's possible to a make a living at. It is very difficult, but what isn't? I didn't think many of the posters here had the cash reserves to swing trade for a living, which I is why I didn't suggest it.

I do have some to money to invest, so I'll take a look at your suggestions.

So you are recommending that people undertake something that you yourself admitted has a 90% failure rate? I'm not sure I follow that reasoning.

Also, swing trading does not necessarily involve more cash reserves than day trading. It is a strategy that has a much higher chance of success than day trading. Swing trading can actually involve investment and collecting dividends along with quick the short-term capital gains.

[Guhji]

Well what is the failure rate of any business? To daytrade, you need a computer, an internet connection, and *some* working capital. Most brokers provide 4 to 1 intraday leverage so you don't really need all that much money. A young, ambitious, entrepreneurial person could try his hand at daytrading, and if it doesn't work out, try something else. Ross Cameron at Warrior Trading only daytrades <10 dollar stocks, and he does extremely well for himself; while not using much capital. Again, I'm not affiliated with him, but he seems legitimate. Anybody interested in daytrading could watch his youtube videos for free and make up his own mind.

You need more money to hold overnight positions. I wouldn't hold penny stocks overnight. Probably stocks in the 30+ range, and you only get 2 to 1 on your money, so you need more cash.

How long do you hold your swing trades for? I hold a portfolio of positions for months, so I DO need cash reserves, not only to trade with, but to live on while I wait for my open positions to mature.

[Moretorque]

Just remember the whole entire system is a gigantic rig job by the central bankers , the quantitative easing " counterfeiting " is being used to inflate it and only a handful of the stocks are generating the big pay outs and responsible for most of the gains. Most of the companies with the big gains are reported to be joined to the CIA at the hip.

Why are interest rates on the whole entire system at historic lows ? this alone tells you something is amiss with the system and I believe a major reset is in order so make sure you have metal as a backup plan.......

[Contrarian Expatriate]

How long do you hold your swing trades for? I hold a portfolio of positions for months, so I DO need cash reserves, not only to trade with, but to live on while I wait for my open positions to mature.

I typically hold them from a few weeks to up to almost a year (I only started this strategy last summer). With monthly dividend ETFs, each month I am guaranteed a cash flow payment while I wait for a recovery to my purchase price or well above it.

Theoretically, even if I have to sell an ETF at a capital loss, I can still be ahead because of the monthly dividends I have reaped while holding it.

For my brokerage account holdings, I do prefer to hold them for the 60 day period so that the dividends are considered "qualified" thus taxed at a much lower rate. For my IRA accounts, I just trade away because it is all tax-deferred.

With ETFs, as with individual stocks, there is a volatility ebb and flow that permits me to set limit orders for buys and limit orders for sales. The most gratifying aspect of this strategy is selling a holding for a nice profit along with its dividends, then buying it back on a limit order when it invariably goes back down after a run up. That is profit threefold!

For example, I might have 1000 shares of an ETF which I purchased at $100 a share (worth 100k). It pays me $500 dollars per month in dividends (6% yield). If I hold it for a year then sell it when it hits $110, I will have:

$6000 in dividend income over the year.
$10,000 in capital gains.
-and-
If I repurchase the stock back at $90 using my $116,000 proceeds, I will have 1288 shares instead of the original 1000 shares. That means my monthly dividend payment will go up to $644 per month!

When you do sell and buy back cheaper several times, your wealth just explodes. These events often happen over the course of many months. With some holdings, the volatility is just not there to three-fold your profits like in the example, but then you would just keep hoarding dividends until they outweigh your capital loss (or just hold it indefinitely and keep reaping the dividends).

[Guhji]

Sounds good. I trade PFF (preferred stock ETF) the same way. Although I feel comfortable enough to purchase more shares if the original buy was too early and the position goes against me. I feel I'm getting an even better price. I absolutely do not buy individual stocks this way though.

[Light]

Deleted

[Contrarian Expatriate]

How long do you hold your swing trades for? I hold a portfolio of positions for months, so I DO need cash reserves, not only to trade with, but to live on while I wait for my open positions to mature.

I typically hold them from a few weeks to up to almost a year (I only started this strategy last summer). With monthly dividend ETFs, each month I am guaranteed a cash flow payment while I wait for a recovery to my purchase price or well above it.

Theoretically, even if I have to sell an ETF at a capital loss, I can still be ahead because of the monthly dividends I have reaped while holding it.

For my brokerage account holdings, I do prefer to hold them for the 60 day period so that the dividends are considered "qualified" thus taxed at a much lower rate. For my IRA accounts, I just trade away because it is all tax-deferred.

With ETFs, as with individual stocks, there is a volatility ebb and flow that permits me to set limit orders for buys and limit orders for sales. The most gratifying aspect of this strategy is selling a holding for a nice profit along with its dividends, then buying it back on a limit order when it invariably goes back down after a run up. That is profit threefold!

For example, I might have 1000 shares of an ETF which I purchased at $100 a share (worth 100k). It pays me $500 dollars per month in dividends (6% yield). If I hold it for a year then sell it when it hits $110, I will have:

$6000 in dividend income over the year.
$10,000 in capital gains.
-and-
If I repurchase the stock back at $90 using my $116,000 proceeds, I will have 1288 shares instead of the original 1000 shares. That means my monthly dividend payment will go up to $644 per month!

When you do sell and buy back cheaper several times, your wealth just explodes. These events often happen over the course of many months. With some holdings, the volatility is just not there to three-fold your profits like in the example, but then you would just keep hoarding dividends until they outweigh your capital loss (or just hold it indefinitely and keep reaping the dividends).

Is that a real life example? How long did it take for the $100 stock to hit $110 to sell it and how long until it hit $90 before you could buy it back again?

Can you recommend a very good European broker? I don't want to keep a US brokerage account when I move to Europe.

That is a realistic, yet hypothetical example. The more volatile the ETF, the quicker these sales and buybacks can occur. There is no predictable time frame in the stock market. It could be a week or 2 years or more.

I only use American brokers so I would not know any European ones. If you do choose a European one, it will trigger FATCA reporting requirements for you AND the broker. Many foreign brokers do not permit American clients now because of this. You would also need to be aware of any special tax filing requirements of that country and it could result in expensive headaches for you.

[Light]

How long do you hold your swing trades for? I hold a portfolio of positions for months, so I DO need cash reserves, not only to trade with, but to live on while I wait for my open positions to mature.

I typically hold them from a few weeks to up to almost a year (I only started this strategy last summer). With monthly dividend ETFs, each month I am guaranteed a cash flow payment while I wait for a recovery to my purchase price or well above it.

Theoretically, even if I have to sell an ETF at a capital loss, I can still be ahead because of the monthly dividends I have reaped while holding it.

For my brokerage account holdings, I do prefer to hold them for the 60 day period so that the dividends are considered "qualified" thus taxed at a much lower rate. For my IRA accounts, I just trade away because it is all tax-deferred.

With ETFs, as with individual stocks, there is a volatility ebb and flow that permits me to set limit orders for buys and limit orders for sales. The most gratifying aspect of this strategy is selling a holding for a nice profit along with its dividends, then buying it back on a limit order when it invariably goes back down after a run up. That is profit threefold!

For example, I might have 1000 shares of an ETF which I purchased at $100 a share (worth 100k). It pays me $500 dollars per month in dividends (6% yield). If I hold it for a year then sell it when it hits $110, I will have:

$6000 in dividend income over the year.
$10,000 in capital gains.
-and-
If I repurchase the stock back at $90 using my $116,000 proceeds, I will have 1288 shares instead of the original 1000 shares. That means my monthly dividend payment will go up to $644 per month!

When you do sell and buy back cheaper several times, your wealth just explodes. These events often happen over the course of many months. With some holdings, the volatility is just not there to three-fold your profits like in the example, but then you would just keep hoarding dividends until they outweigh your capital loss (or just hold it indefinitely and keep reaping the dividends).

Is that a real life example? How long did it take for the $100 stock to hit $110 to sell it and how long until it hit $90 before you could buy it back again?

Can you recommend a very good European broker? I don't want to keep a US brokerage account when I move to Europe.

That is a realistic, yet hypothetical example. The more volatile the ETF, the quicker these sales and buybacks can occur. There is no predictable time frame in the stock market. It could be a week or 2 years or more.

I only use American brokers so I would not know any European ones. If you do choose a European one, it will trigger FATCA reporting requirements for you AND the broker. Many foreign brokers do not permit American clients now because of this. You would also need to be aware of any special tax filing requirements of that country and it could result in expensive headaches for you.

I have dual citizenship so I could present my Italian passport and Italian ID to foreign broker. I imagine dual citizenship would increase my ability to open foreign financial accounts otherwise banned for American clients. I know the passport and ID card have the country of birth so I'm been trying to figure out a way to conceal it with a holographic strip or maybe on the ID just scratch the birth place so its illegible. I want to keep my assets as far as possible outside the US financial system. I have personal reasons why I only want to keep a single savings account in the United States with a minimal balance. I've been looking at brokers in Europe but its a little tricky to understand how expensive they will be because there are different fees compared to US brokers that typically charge standard fees, and some European brokers have maintenance fees on the account.

[Contrarian Expatriate]

How long do you hold your swing trades for? I hold a portfolio of positions for months, so I DO need cash reserves, not only to trade with, but to live on while I wait for my open positions to mature.

I typically hold them from a few weeks to up to almost a year (I only started this strategy last summer). With monthly dividend ETFs, each month I am guaranteed a cash flow payment while I wait for a recovery to my purchase price or well above it.

Theoretically, even if I have to sell an ETF at a capital loss, I can still be ahead because of the monthly dividends I have reaped while holding it.

For my brokerage account holdings, I do prefer to hold them for the 60 day period so that the dividends are considered "qualified" thus taxed at a much lower rate. For my IRA accounts, I just trade away because it is all tax-deferred.

With ETFs, as with individual stocks, there is a volatility ebb and flow that permits me to set limit orders for buys and limit orders for sales. The most gratifying aspect of this strategy is selling a holding for a nice profit along with its dividends, then buying it back on a limit order when it invariably goes back down after a run up. That is profit threefold!

For example, I might have 1000 shares of an ETF which I purchased at $100 a share (worth 100k). It pays me $500 dollars per month in dividends (6% yield). If I hold it for a year then sell it when it hits $110, I will have:

$6000 in dividend income over the year.
$10,000 in capital gains.
-and-
If I repurchase the stock back at $90 using my $116,000 proceeds, I will have 1288 shares instead of the original 1000 shares. That means my monthly dividend payment will go up to $644 per month!

When you do sell and buy back cheaper several times, your wealth just explodes. These events often happen over the course of many months. With some holdings, the volatility is just not there to three-fold your profits like in the example, but then you would just keep hoarding dividends until they outweigh your capital loss (or just hold it indefinitely and keep reaping the dividends).

Is that a real life example? How long did it take for the $100 stock to hit $110 to sell it and how long until it hit $90 before you could buy it back again?

Can you recommend a very good European broker? I don't want to keep a US brokerage account when I move to Europe.

That is a realistic, yet hypothetical example. The more volatile the ETF, the quicker these sales and buybacks can occur. There is no predictable time frame in the stock market. It could be a week or 2 years or more.

I only use American brokers so I would not know any European ones. If you do choose a European one, it will trigger FATCA reporting requirements for you AND the broker. Many foreign brokers do not permit American clients now because of this. You would also need to be aware of any special tax filing requirements of that country and it could result in expensive headaches for you.

I have dual citizenship so I could present my Italian passport and Italian ID to foreign broker. I imagine dual citizenship would increase my ability to open foreign financial accounts otherwise banned for American clients. I know the passport and ID card have the country of birth so I'm been trying to figure out a way to conceal it with a holographic strip or maybe on the ID just scratch the birth place so its illegible. I want to keep my assets as far as possible outside the US financial system. I have personal reasons why I only want to keep a single savings account in the United States with a minimal balance. I've been looking at brokers in Europe but its a little tricky to understand how expensive they will be because there are different fees compared to US brokers that typically charge standard fees, and some European brokers have maintenance fees on the account.

If you want to take that route, you should simply renounce your US citizenship. FATCA is so far reaching that so long as you are a US citizen and are non-compliant, the US Treasury can seize your money. You would stand to be guilty of tax evasion on proceeds also.

Yes, FATCA does report US born persons also. They would likely not open the account if that were concealed.

It is a stupid law and many people have already renounced because of it. You would be wise to do the same rather than risk seizure, arrest, and prison.

[Moretorque]

How much is it now to renounce a US citizenship ?

[GuyAbroad8293]

Stocks are so f***ing risky, I mean the whole stock market is a rigged pyramid scheme. You are always living in stress, constantly checking the stocks, constantly worried "What if I don't sell in time", etc. Better to just have a normal job so you can have peace of mind.