Originally Posted by
Gunfighter
All this talk of risk, inexperienced traders and tax considerations has me thinking about a quick retreat to my happy place in real estate. I've never had a house drop to 0 or watched it double when I'm short. The leverage on options is great, but so is the leverage on RE. The tax code is favorable to index options, but even better for real estate. The ability to receive cash flow that is offset by a non-cash expense (depreciation), then take cash out via refi without paying taxes on the distribution is a huge advantage. I'm trying out trading more for entertainment in a small account, while keeping my primary focus on adding more real estate.
The most successful investors will always be doing what they enjoy spending the time and energy to get good at. If real estate is your thing you will be better at that than stock picking. I had rentals from 1989 to 2006, made a lot of money but just got sick of the 2AM calls about overflowing toilets and repairing tenant damage at the end of every lease. I sold out when the market went crazy last time. Right now sort of reminds me of those days.