Welcome to trade compound grow, my blog dedicated to trading to help us achieve financial freedom.

 

Times have changed from what pensioners are traditionally used to and we really are in unprecedented times. Think about the following:

– Final salary pension schemes have been phased out for defined contribution schemes which has transferred the risk of funding retirements from employers onto employees.

– We are on average living longer meaning our pension pots need to be significantly larger to fund our retirements for longer.

– The state pension age keeps rising.

– The current cost of living with high rental and mortgage payments, childcare costs, travel costs along with a squeeze on incomes means many of us have a much lower disposable income to allow us to save.

I have a goal of retiring or achieving ‘financial freedom’ at a time in my life where I can travel, spend time with family and friends and enjoy my hobbies. I’m sure many of us feel the same but due to the reasons above, when you do the calculations, what we may actually get from our current pensions and savings when we want to stop working or reduce our hours is pretty pathetic.

I’m a bit strange and have been thinking about this for many years. So what can we do about it. Well in theory I think it’s pretty simple. We need to do the following (generally in addition to paying into a pension):

– Budget our income and outgoings and pay ourselves first

– Clear our debts (non mortgage) including credit cards, loans (not necessarily student loan) etc

– Invest in income producing assets

Income producing assets should cover a diverse range of global asset classes including equities, commodities, bonds, property etc. I’m not talking about quick wins, this is a process that takes time but by using the marvellous effects of compounding you will see stunning results.

So where does trading come into all this?

Now this all sounds fantastic but what if we don’t have large sums of spare money at the end of the month to invest in assets? Well I want to show one way of how I plan to get around this problem and that is by trading. I have been trading for six years and believe if done properly and carefully using strict money management and a proven strategy, trading can help us build up our investment pot which itself will compound its way to assist us with our plan to invest in income producing assets.

I have developed my primary trading strategy to help me build up my investment pot. It is easily managed around my work, it has been vigorously backtested to show it has had a manageable drawdown and has had a net compounded return of 12%. This far exceeds the average net return in a fund. In addition, because I spread bet and use leverage there are additional ways of increasing this return which I will discuss further into the blog.

So in this blog I want to discuss all aspects of trading, budgeting, investing, reducing debt and achieving financial freedom. I want to create a community where we can discuss these issues and help each other achieve our goals. Whether you already trade or it’s new to you, I hope you enjoy and benefit from my experiences.

 Some of you may ask why do a blog….

Well firstly I have been recording my trade results all along for my own personal records but I feel by posting them on this blog going forward I am much more accountable. In due course I will look to post all of my future trades on the trading log page…….and secondly I have a genuine interest and passion in getting the word out there that we can no longer rely on our employers or the state to pay for our retirement. Financial education in this country and around the world is poor. Whether this is because governments are concerned if we all start to save we won’t be spending or whether it’s because they don’t want to admit there is a problem i’m not sure but anyhow I feel more needs to be done.

Feel free to ask me questions along the way. If you do have any questions or comments please get in touch at stu@tradecompoundgrow.com or using the contact form at www.tradecompoundgrow.com/contact/and in the mean time happy reading.


Leave a Reply

Your email address will not be published. Required fields are marked *