Stock Market Millionaire
A lot of people have become millionaires in the stock market. Some by accident and some on purpose. For example, those that began working at Microsoft in its infancy received stock options as part of their compensation. Those stocks grew so much that even the menial workers such as secretaries and custodians literally became stock market millionaires. Then there others like Warren Buffett who has become a billionaire strictly by investing in the stock market.
But what about you?
The truth is that you probably don’t fit either description above. So how do you become a stock market millionaire? You don’t work for the next Microsoft and you don’t have the know-how of Warren Buffet. Or do you? The truth is that much of what Warren Buffett has done to become successful is based on some simple principles of investing.
First, you have to recognize when to buy and when to sell. Many people buy when the market is hot and sell when it gets cold. In other words, they buy and sell based on emotion rather than logic. If you want to be a stock market millionaire, then you buy when a stock is low and sell when it is high, regardless of the emotions that are telling you to make the same mistake your friends are making.
Second, is devotion to time. Making money in the market takes time. It may take several years for an investment to return a huge profit and you must be willing to wait. But particularly if you follow the next step, it will be well worth the wait.
Third, buy when it goes even lower. The truth is that no one knows how low a stock will go, but it actually doesn’t matter. For example, if you think a certain stock is low you naturally buy it. But what if it goes lower? The fact is, there’s a good chance that it will. Standard wisdom tells you to sell it because you obviously made a mistake. However, if you continue to watch it and buy more as the price sinks further, your profits will be much greater when you do sell at some future date. I can’t tell you how many times I bought stocks that continued to spiral downward. I purchased more shares at a lower price and when it did turn around, I made bank. Sometimes this took 4–5 years, but it was worth the wait for sometimes hundreds of percent return.
Fourth, have several stocks going at once. Don’t focus on just one or two stocks. You’ve heard the phrase “don’t put all your eggs in one basket,” which means to keep your money in many different types of investments. A better definition would be to have your money spread throughout about 6–10 stocks at one time. When you have more investment money available, invest in the one that has gone down the most. After a while you will have some that are down and others that are up. When you sell, start looking for another one.
This strategy may sound a bit vague, but I have written 7 free lessons to provide you with the details of how to follow this strategy. It is quite simple really and can make you a lot of money.