By Chris Rowe – Creator: Technical Analysis Millionaire
Today I’ll let you in on a millionaire’s secret — and I’m 100% sure that most millionaires who read this will completely agree with this one.
As you may know, I’m retiring comfortably at age 34.
Frankly, it’s later in life than I anticipated, considering I started managing money on Wall Street at age 18. I’ve known several people who needed to work fewer than 10 years to retire comfortably, but they love what they do so much that they just continue on in their careers.
Astonishingly, there are just a few concepts or "rules" to live by that I think can easily propel anybody into this kind of opportunity.
Throughout my lifetime I’ve been surrounded by two very different types of people, both of whom are successful and live a "working lifestyle".
The first type of person works 12+ hour days.
Not the 12 hour workdays that have 2 hour lunches, 1 hour snacks, 2 hours of chatting and 7 hours of real work. I’m talking about the person literally doing focused work for 12 hours or more, every day.
He gladly eats lunch at his desk while he works. He is up an the crack of dawn beating the traffic to work as the sun comes up. He’s racing the clock, hoping the sun will never set. And, frustratingly enough, it eventually does. But he continues.
Sound like a miserable life? Hardly!
The two coolest things about this type of person are:
1. He is VERY well paid.
2. He is rarely actually "working" because he LOVES what he does. When you think about it, an NBA basketball player is CONSTANTLY "working", and working hardest during actual game time. But one can argue he is living a dream life.
He is rewarded in so many ways other than financially.
This described my lifestyle, until recently, when I retired.
Because of my personal situation, I’ve always been someone forced to work at least twice as hard for the same result. So to avoid insanity, I never did something I didn’t love doing. But that "overdrive" style of work ethic brought me the results, financially, that a person gets from doing those 10 painful extra sit ups.
But now I’m moving more toward being the second type of person…
The second type of person does 15% of the work, with the same results.
I’ll always work more than most people. So to me, 15% of the work means about 10 hours of work per week.
In retirement, as over half our readership can attest, you still must work.
Most people work 9 – 5, including a lunch hour. And this is how you, during your retirement, are able to work 5 hour work weeks and stay above water.
This comes down to the famous 80/20 rule, where 80% of your productivity comes from 20% of the work you do. You may not know this, but people with a net worth over $5 million actually have "80/20" tattooed on their chests. It’s a secret society that I hope everyone reading this becomes a part of. You can choose your own color.
80% of the time most people spend is just fluff. In fact, what’s typically done in the 80% infects the productive 20%.
Here’s the secret to a 5-hour workweek: Technical Analysis.
You can spend hours and hours each day pondering how China’s PMI might affect the market… or the impact of the Republican primaries… or the tensions in the middle east… or the alignment of Saturn and Pluto.
You can watch the financial television programs, talk to your friends, read the newspaper, listen to quarterly earnings conference calls and read analyst reports.
If you are doing any of these things in order to form an opinion, then you should have a job where you are paid to give that opinion.
But if you’re not a talking head, an editor, a political comedian…
If you don’t push buttons that make animal sounds and throw chairs around taking phone calls from viewers…
If you aren’t a money manager that has to give client presentations or a corporate executive talking to shareholders…
Then you are almost certainly wasting your valuable time!
So, what might be a more profitable use of your time?
Consider that the S&P 500 just broke out to a very important level. It’s above the May 2011 highs again, trading at 1,383. It should be bought.
See how long that took?
If it moves to 1,330 it should probably be sold until further notice. But, of course, I will have to click my keyboard a few times to look a a few other charts just to confirm that assumption.
That would be a 3.8% loss. Not a big deal. Just part of the business.
Tech stocks have been ripping higher. XLK is the ETF that tracks the tech sector portion of the S&P 500.
If you take just a few minutes and have just a bit of technical analysis knowledge, you can see that NUMEROUS stocks out there have formed classic bullish shakeout patterns over the last couple of weeks, as we discussed yesterday in my Technical Analysis Millionaire Mastery Program. That means the pump is primed for a lot more upside after weak traders have been shaken out of the market.
We went over about 6-7 trading ideas yesterday. And that mastery program is 3 hours per week!
This isn’t an advertizement for the program. This is just my plea to you — to just focus on pricing and eliminate all the noise that is nothing more than a distraction from the productive 20% of your time. Take 20% of the time you probably spend thinking about how to make money or protect the money you have, and apply that time to studying pricing, and risk management to protect inevitable losses from becoming unreasonable.
The first type of person I described "works hard". The second type of person "works smart". And then there is the rare third type of person who is a combination of the two — the true Jedi. She focuses on that productive 20%, but multiplies that quality of productive work by 5.
You don’t have to be the first type — the laser focused nutcase who works twice as hard. That’s who I chose to be, and I don’t regret one second of it. But it’s not for everyone.
You can be the second type who spends 15% – 20% of the time getting the same results.
I can’t honestly say I’m the ultimate combination Jedi, but I do lean toward the combination. To be the combination Jedi is difficult, and frankly I was only able to lean toward that combination because I was forced to, due to my being a paraplegic. If that hadn’t happened at age 15, I probably wouldn’t have been as motivated to seek out the true answer to financial prosperity.
Finding something I love doing as much as what I have now and have had throughout my career might have instead been sheer luck.
The bottom line is you could probably eliminate 85% of what you focus on each week and still make the same amount of money or more.
I hope you study the number one forecaster of price, which is price itself. And spend the time you would have spent listening to "the noise", listening to more pleasant noises like the ones I am listening to right now — a 3-year old and 5-year old playing in the pool behind our house.
Have a great week. I hope you’ll listen to Teeka Tiwari and myself tomorrow morning on Morning GPS.
Editor, The Tycoon Report
Co-Founder, Institute for Individual Investors
Creator, Technical Analysis Millionaire
Chief Investment Officer, The Trend Rider
An internationally respected authority on options, 9-year Wall Street veteran, and co-founder of Institute for Individual Investors, Chris Rowe spun out profitable trades for his Trend Rider members for 7 years, ending with his retirement in 2012.
While most professionals consider an options trader who is right on 3 of 10 trades to be very good, Chris was right on the majority of his trades!
Now, through his weekly “Technical Tuesday” Tycoon Report articles, Chris Rowe helps hundreds of thousands of investors across the globe, demonstrating the benefits they’ll realize by taking a dispassionate, business-like approach to both stock and options trading.
In his thorough and detailed, yet easy and accessible courses, you’ll learn directly from Chris how incredibly easy it is to consistently make money – in bull markets, bear markets and flat markets – when you use a proven system for trading success.