This blog goes out specifically to my doctor friends still in the trenches of full-time professional practice. Treating patients with the healing touch takes a unique person. One who not only has the highest professional standards, but also one with the caring and compassion of a healer. While you are practicing, nothing should be more important than the welfare of your patients.
I have been asked several times now by my dentist and other doctors what it would take to get into trading. It is not an easy answer. But as you are likely aware, to attempt to be exceptional at both professional patient care and another profession like trading simultaneously can be hazardous. It can affect your practice focus and leave you less clear on your primary healing contributions.
On the other hand, your trading may suffer because your focus is on your patients. What’s a doctor to do?
When I first started investing after I saved up a little money from my practice, I made it very simple. I bought tax-free municipal bonds. The bonds paid every six months like clockwork, and I had little-to-no involvement in the market overall. It didn’t matter what the markets were doing; my bonds still paid every six months. When the markets crashed in the dotcom bubble of 2000, or the housing crisis in 2007, I wasn’t hurt a bit.
Perhaps being a passive investor like this is exactly what you need and want. You could easily just add your investment money into an index fund following the S&P 500. Since 1950, the S&P has returned about 9% per year on average during those 73 years. Inflation adjusted, the return is in the mid 6% range. Add some funds each month on auto pilot and forget it.
I have come across a few doctors attempting to be day traders in between patient visits. If you want to lose focus on your practice, this would be the best way to do it. Day trading is an anxiety inducing profession. I can’t imagine trying to juggle day trading and patient care. In my opinion it is a recipe for a disaster.
Of course, the lure of much higher returns from trading is enticing. Many professional traders earn 100% plus returns annually. But, just like professional practice, it takes time and training to become a consistently profitable trader. To enter trading or get started in trading from professional practice takes a well thought out plan.
Trading part-time while still in practice is very common. Entering with smaller trades over longer timeframes of weeks to months reduces the anxiety of the market ups and downs. It can add some excitement with very little focus lost on your all-important practice. After your practice day is over, you can check on the markets to see how your trades are progressing.
Reviewing your trades and charts should take no more than twenty minutes a day. Entering trading in this fashion will help keep your focus on your all-important patients. You can continue trading part-time indefinitely while maintaining your practice.
At some point down the road, you may choose to move on from your practice to simply manage your own trading business and investments like I do. The cool part about trading, as well as your practice, is you make the decisions on where your creation is going.
Enuf said.