Part One: Getting Started
âMoney canât buy you happiness, but it does bring you a more pleasant form of misery.â
â spike milligan
1. Escaping the Rat Race
My story
In 1998 I remember sitting in a grim office overlooking a dismal carpet warehouse on the A4 and thinking: âIs this how I want to spend my life?â
I was earning quite a bit, but I wasnât happy. I didnât want to be in a horrible office working for a big company anymore. I knew what I wanted: freedom!
I quit the rat race in 2001 and have never looked back. I love my lifestyle. No moody bosses or targets. Just me! Of course, there are no office politics â but I can live without them. By 2014, lucky me had pretty much become financially independent forever. I bought a second property with some of my gains, so there is always a source of income there if I need it.
I realised working for someone else â unless you absolutely love what you do â is a mugâs game. Youâre just there to pay the mortgage every month. So while I worked for BSkyB, I also worked for myself. I had a shiny Reuters machine on my desk and, after the cleaner had been, I learned everything about the markets through practice.
I quickly discovered I could make a lot more money trading than in my full-time job, and in 2001 I quit to trade more or less full time. Before this, though, I had to get some extra money to trade with.
The delectable Buffy
So while still employed I started to develop other income streams â one of which was a Buffy the Vampire Slayer information line. This made me ÂŁ250,000 over four years! It simply involved me reading out the latest Buffy news on my phone at home â eager viewers would call the line to hear the recording and I made money out of each call. Sadly, the series ended in 2000, and with it the line.
I started it for a bit of a laugh⊠but on its first day the guy who owned the phone company called me up and said: âBugger me, itâs just taken ÂŁ400!â
Happiness is⊠residual income
And I sold mobile phones and cut-price phone calls and energy for a company called Telecom Plus. I got â and still get â a cut of every phone call made or bit of energy used by customers who signed up through me. Itâs called residual income and it pays all my bills even now. I still earn from customers I sold to in 1999!
Armed, therefore, with a huge pile of cash, I quit my job and decided to trade full time. But I didnât go crazy. I started off by just putting ÂŁ7,000 into a stocks-and-shares ISA and ÂŁ10,000 into a spread betting account. I only added small amounts over the years (the government donât let you add more than a certain amount annually to your ISA). I did not want to lose my capital.
I also wanted a bit of a fallback in case I wasnât such a great trader, so I bought a cafĂ© near a tube station in Fulham. That proved a lot of fun and I made quite a bit of money. My wife and I improved it till it made ÂŁ1,000 a day instead of ÂŁ300 â it was very successful.
So successful, in fact, that it actually became a pain in the neck. More customers, which led to more staff, which led to more problems. Classic growing pains.
Sometimes staff didnât turn up and I found myself making coffees at 7am! There were all kinds of things I didnât like doing: firing staff; dealing with customers complaining there was fish in their fish pie; and handling all the mess a cafĂ© brings.
The worst incident I can remember was when all the staff were sick, and I was on my own behind the counter trying to serve a huge queue of people. I shouted out: âI need help! Anyone want a short-term job? ÂŁ10 an hour.â And one of the customers came to my rescue and started serving. There was a lovely community spirit and I met a lot of great people.
But with my son arriving on the scene it became too much effort to run it â enough was enough.
I had originally intended it to be the start of a chain, and I nearly bought a second cafĂ©, but I didnât want to be a retail mogul. Too much effort â Iâd rather have less money and enjoy relaxing.
So I sold the café for roughly double what I paid for it. Interestingly, running the café helped my trading because a café business is quite complex, and learning the accounts helped me evaluate stock market businesses.
A lazy life
So now I just trade and run my website www.nakedtrader.co.uk (and watch a lot of TV box sets).
I also hold five or six seminars a year, where I show readers my techniques using live markets on a big screen. I really enjoy them and they get me out of th...