Hi everyone. Thank you very much for taking the time to visit the Two Investing website. I started investing on my own with a small amount of capital when I was an undergraduate student but did not actively manage my account on a regular basis until my junior and senior years of college. I then started medical school and did not make many new investments for several years until I began working a full-time job after graduation. I stayed very interested in investing throughout that entire period but did not have the financial capital to routinely invest. Like Scott, I am currently a resident physician in the middle of my training program.
Until early 2013, my investment strategy consisted entirely of buying stock and reinvesting dividends in individual companies, exchange traded funds, and mutual funds (as well as the occasional buying of higher yielding Certificates of Deposit back when I was in medical school and could not tolerate much downside risk as I had to pay tuition). Once I started my full-time job as a resident, I began contributing to my workplace 401(k)/403(b) accounts every two weeks (as part of every paycheck) and attempted to fully fund my Roth IRA on an annual basis whenever possible. In addition, I saved money and utilized some of those savings for a small amount of capital in my regular, taxable investment accounts.
I had heard about options over the years, but I did not take the time to learn about what options truly were until early 2013. Since that time, I have become incredibly interested in options and other derivatives and am learning as much as I can about these financial instruments in order to actively incorporate them into my portfolio as part of my overall investment strategy. In the past year since I started investing in options, I have, of course, lost on some trades and gained on others. However, I have greatly enjoyed being more actively engaged in the markets during the process of selecting and managing my options positions. Yes, options do carry significant risk (the amount of risk varies depending on how they are used) and the potential for losses, but I value the opportunity to manage that risk as part of my overall portfolio.
To summarize my investing strategy in the context of my current small amount of capital, I aim to invest (combining long stock and fund positions with dividend reinvestment for longer-term investments, particularly in my retirement accounts) and trade (utilizing both calls and puts on short-term and longer-term options) as I feel that both are valuable to my learning and portfolio. With the Two Investing blog, I look forward to sharing my experiences as I invest, trade, and learn more about the financial markets. Thanks again for visiting us at Two Investing.
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