Getting a Second Opinion: Doctors & Investing
My doctor friends are always asking me for trading advice. Which is only fair since I’m always asking them for medical advice. It’s also understandable, given they know that my portfolio returns between 30% - over 200% annually.
I naturally just tell them to check out www.shecantrade.com and sign up for my e-newsletter Sign Up Here
There are some medical professionals that prescribe to the idea that physicians should just stick to what they know best – medicine – and leave investing to financial experts, mutual funds, or even passive index funds. In fact, there was a study a couple of years ago by a large retail investment firm that shall remain nameless (just Google: Doctors, investing, study) – that surveyed over 2,000 doctors and basically mocked their financial acumen – by highlighting all the unprofitable asset allocation decisions they had made in their portfolios.
In contrast, I know many doctors that have done quite well for themselves, thanks to a zeal for trading and a keen eye for detail, when it comes to surgically analyzing market trends. Doctors have spent years studying to hone their craft and impact lives. So I see no reason why that same passion and talent for learning can’t be applied to investing, namely, Options Trading.
Here are some tips that have helped my physician friends get started:
Commit to learning
It’s hard to ask someone who has finished a decade of school to hit the books once again…but learning the basics, nuisances, and strategies of Options Trading can not only be fun, but highly profitable. The good news is, you don’t have to read an actual book to learn how to trade. Many doctors have turned into successful traders by following this video tutorial program: Start Trading Options in 5 Weeks
Get a strategy
Develop a trading strategy that will guide the type of trades you are comfortable doing. You will have your own personal expertise when it comes to certain stocks (example: Health Care stocks) and you can rely on instincts, but also keep your mind open to trading ideas from proven sources, such as SheCanTrade mini lessons Free Lessons
Understand your goals and risk tolerance
Everyone thinks that all doctors live the glamorous life of Clooney, whereas many physicians are still concerned with paying bills, growing their practice, and saving for retirement like Dr.Greene. That being said, your risk tolerance when trading should align with your goals. Is trading just a hobby? Is it to increase your discretionary income? Or is it a part of your retirement investment strategy?
Your goals might shift as you become more confident and successful with your trades. However, I hope you still stay in the profession, even if you become a wildly successful trader. The world would be a better place with more doctors that don’t have to worry about their financial health.
Return to Blog