The next strategy you can use to achieve Financial Independence is strategic financial trading and speculation.
There are different types of market - the stock market, the currency market, and more... You can learn to trade on any market and become a trader. We would recommend you the Forex market, because it has many advantages like you can start with much lower capital. We have an in-depth blog about the four types of trader
out there and also an in-depth blog about the difference between trading and investing
If you have specialize knowledge in the markets and you can exploit the oscillations of the collective market mind. This allows you to buy when there’s unjustified pessimism or sell when there’s unsustainable optimism. You can trade and edge and you make semi-passive income that’s very highly scalable and mobile.
Based on the example above, if you’re doing 2% a month with a $200,000 account, you can have your lifestyle expenses covered. If you’re able to nail 4% per month in your account, a $100,000 account will do it. In other words, you store the hundred grand in your trading account, you make a 4% return (as a monthly average), you draw your $4,000 out and your lifestyle expenses are covered.
Now if you’re popping 6% a month as a trader, you’re looking at under $70,000. In other words, you accumulate $70k and you’ve got your lifestyle expenses taken care of. But be aware that 6% per month as an average return over a long period of time is very impressive.
Only a small percentage of traders make it to that level, and those who do will eventually sustain liquidity restrictions as their account size grows into 7 and 8 figures. Basically, as your account size grows into a vast size, the edge you trade in the market will become smaller and smaller as it becomes harder to move around greater size. This is why multi-billion dollar hedge funds can’t get close to a 6% monthly average.