Abstract
The Buck Starts Here: Investing, for Everyone is a book I am writing for a new trader or investor who is looking for ways to build individual wealth in a responsible way. The chapters are a reflection of areas in my educational journey as both an investor and trader which I felt were underemphasized, or which I selectively dismissed because I was caught up in the excitement of a gamble (see cryptocurrency).
The Buck Starts Here is an attempt to make persuasive, well-grounded arguments for why investing is for everyone.
The opening section is entitled
‘A Philosophy of Investing’ , which may be of some or of no interest at all to the reader. It is my attempt to ground the argument for investing in the achievement of financial independence, that is to say, mitigating one's economic risk. Part II examines risk, and how deeply intertwined risk is with investing decisions. This section includes descriptions of the psychological maladies which lead many investors and traders to make poor investment decisions. It will offer tools in the form of rules-based strategies, concluding with two distinct styles of statistically-based investing: value investing and index investing (hypothesis testing and averaging by other names). These particular styles offer the investor the choice to be active or to approach investing passively. Part III is traditionally informative. It includes chapters on markets, emergency funds, information on economic data for analysis, and the Federal Reserve system. Chapters on tax considerations, retirement vehicles, and asset classes also deserve recognition, as I have had to personally educate myself on these topics as situations arose; however, it is difficult to write on these topics because the rules tend to be very particular to the investor or trader’s situation, and much of what can be said in a general sense is of little value. Still, I believe these chapters are substantive enough to merit their inclusion.
Ultimately, I think my goal for this book is to write the guide to trading and investing that my past self would find persuasive and constructive. My past disregard for risk is reflected in its emphasis across all chapters.
The Buck Starts Here is an attempt to establish the framework that would motivate me to continue my pursuit of financial independence. When I exited software development to become a full-time trader, I believed I had achieved my version of financial independence, but that decision was made with extreme optimism given the inherent risk in my investment portfolio. This was a mistake I made that bears not repeating—not by myself, nor, if I am persuasive enough, by the reader.
To me, investing is the act of chipping away at one's personal economic risk. I hope I can present a convincing argument for that to the reader.
Sections of the book are available below for informational purposes only.
Market Mechanics