 Re: Can you retire and play stocks?
An excellent experiment, conducted from a common misconception. If I read your strategy correctly, you are attempting to leverage capital at risk against small movements in stock price. At the most basic, your approach is that of "more is better". Expecting this approach to net smaller percentages magnified by sheer volume. In theory,this approach should average net gains over time,provided that your ability to project stock price action is correct at least 51% of the time. And that you are equally balanced in percentage losses versus gains across that minimum 51% consistantly. You know as well as I,that stocks drop faster than they rise.
So, maintaining the minimum balance to achieve profitability using this strategy actually requires that you have a far greater accuracy (on the order of 66%)in predicting stock action moving in your favor than reality will allow over time, in order to make up for the disparity in the rate of rise versus the rate of fall in stocks. This is all predicated on the assumption that you have the time and inclination to closely monitor your investments through the trading day. All day. Every day.
Doesnt sound like retirement to me. Sounds more like a job. A really nerve racking job.
If your goal is to produce an income from the leveraging of capital, why not actually use the leverage? The same share volume can be controlled at far less capital risk by sticking to options. Options also allow the benefit of a wider time frame for the underlying stock to move in your favor while "smoothing out" the agrivation of watching the funds move in and out, broad trends in sectors,etc..
Good Luck  | 
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