The Magical Elven Box

Making a living in the stock market

Elven dice tray at The Wizard’s Vault

Some clarifications

What I mean about making a living in the stock marketing is making money enough for your financial independence, at least. I don’t mean working 8 hours per day connected to the market. In fact, you will have a lot of spare time. And when you have time and are not in need of money, you can work in the activities that you are passionate for, in the pleasant conditions that you choose.

One of the things that I most like in the stock market is that losing money there is extremely easy, compared to losing money in other businesses.

We start a business to win money, not to lose money. At least this is our conscious desire.

One of the things that I most like in the stock market is that making money there is extremely easy, compared to making money in other businesses.

The magical elven box

If you haven’t read the previous article, you must do it now.

Only losers play all or nothing. Winners focus on surviving.

There is another factor for your capital not be multiplied 10,000 times in ten years. You are not a machine. You are not a greedy person. When your income is more than enough, you start to relax a bit. And start to using defensive strategies to protect your accumulated capital. You reached your goal. Congratulations!

The goal is NOT becoming rich. The goal is easily reaching a comfortable financial situation. Becoming rich is an undesirable collateral effect that happens with time.

And about the AVERAGE profit rate of 100% per year?

It is possible but don’t set it as a goal.

AVERAGE annual profit of 50% is good enough. If it is lower than 25% on normal years, it means you are not very focused (no problem) or you are doing something wrong.

Adjusting the profit rate of the magical elven box to 50%:

  1. start: $ 1.00
  2. end of first year: $1.00 * 1.5 = $1.50
  3. end of second year: $1.5 * 1.5 = $2.25
  4. end of third year: $2.25 * 1.5 = $3.375
  5. end of fourth year: $3.375 * 1.5 = $5.0625
  6. end of fifth year: $5.0625 * 1.5 = $7.59375
  7. end of sixth year: $7.59375 * 1.5 = $11.390625
  8. end of seventh year: $11.390625 * 1.5 = $17.0859375

To be continued

The next article is The Cat in the Kitchen.

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