The Buying & Selling of Others & WHats your Figure

What's your Figure?

Now that is an interesting question. Recently, i watched Wall Street, the original movie and then i watched the new Wall Street movie. Now, as a trader, both movies struck certain chords with me.

In the original, at the ending, the Charlie Sheen character is heading to the court house where he expects to be put in jail. His father tells him "Maybe this is the wake call you need. Stop living off the buying and selling of others and produce something.". That was a movie released in 1984 and the same conversations in that movie can be had now in 2010 (especially after 2008). In that scene, i remembered a similiar conversation i had with my father. No matter how much i tried, he could never understand what i did for a living or why i enjoy it so much. He could not see what i produce or what i contributed to the world. In his mind, i believe he felt that i lived off the buying and selling of others or as some put it - i use other people's money and skim off the top.

What do i do and what motivates me to do it?

To the first question, i would tell you that i strive to provide a platform for capital (money) to flow into emerging markets and for capital to flow out. I am the bridge or one of the bridges that allows capital to flow from surplus centers to centers that require it. I would tell you that proudly but most people would rather believe i live off the buying and selling of others.

Why? Because i make money as capital flows into countries when they need it. I make money when capital flows out when they dont need it. I make tremendous amount of money when money flows into countries that are having too much capital inflow and i make the most amount of money when capital flows out at points when the country needs it the most. No one complains when they need it but we are easy to blame when the flow hurts. This is only natural.

Especially as its a job that can pay well but in all things, there is no such thing as money for nothing. Your career as a trader can end in so many ways. In 2006, the worst trading year i ever had, if i had not recovered from my losses, i may not have got the transfer to Singapore and my career could have stalled. I have to continuously improve and there is no let up as at some point, you can be made redundant. Recently i heard about 3 or 4 cases of people who have not been performing and have been asked to either leave their banks or are being transferred back to their home countries. Its sad especially when the family is already established here in Singapore. This is what we all face if we become complacent or switch off. There is no off button in this job.

So why do it? It cant be only about the money. Granted there are those that are solely motivated by the money but many of these guys burn out or lose interest or worse they sacrifice their integrity to support lifestyles that require more and more money. In the second wall street movie, the young idealistic banker (in my mind, that could be me...granted i dont look as good in a suit) asks the diabolical and greedy Josh Brolin character - Whats your figure? Everyone has a figure. Their walk away figure. The Josh Brolin character smirks and says MORE.

It cant be about MORE, it has to mean more than that.

To me i love what i do as no job gives you the opportunities to see how each and every one is linked - how for instance, in China, most people save almost 40 - 50% of their income for their child's education and for their own medical expenses. Now China has a slowing manufacturing division and a rising educated degree carrying population (most estimates expect 7m graduates a year will be entering the chinese work force). What can they do? They need to boost the services sector domestically but to do that they need stronger consumption by the people. They see this and now there is a big push to provide education and medical facilities and support for the public. The public then has more to spend to grow consumption. What this means is that there will be a large amount of capital flowing into China in the consumer sectors and in retail and in medical facilities. What should be done - move capital to medical providers, education providers, the CNY must appreciate. Everything is linked and my job gives me a front row seat to how the world is growing for good and bad. Mostly good as i am a optimist.

So i love what i do and it pays but it cant be about MORE.

I have my walk-away figure. The figure that i have in my mind where i am financially free. So many people pluck numbers out of the air saying i want 1m sitting in my account or 1m per child. All good but everyones figure is different and is relative to their income and their spending habits.

My belief which i believe strongly is life is too short for delayed gratification to be your sole motive in life. My motive in life is to provide and to meet long term goals while enjoying and spending the now.

So whats my figure?

Its the amount of money that if i put it in a FD earning 4%, i can comfortably live off the interest earned.

So say you want 20k a month which is 240k a year. Your figure then will be 240k/4% or 6 Million.

My figure - thats a secret but i can tell you this i have only covered 4%, ONLY 96% to go.

What do i do then? Maybe stop living off the buying and selling of others (haha) and Produce, Give it away or build something lasting....i dont know but i am excited at the prospect.

So heres to each and everyone finding their figure and succeeding.

d.