How To Turn $5,000 in $50,000

You want to learn how to 10x your savings? This isn't going to be a get rich quick scheme, or anything illegal. This is a way to compound the money that you already have saved.

If you're ready to get started, just keep reading!

So you want to 10x your money but have never done any investing, well I'm here to teach you. The world of investing is where dreams are made. You may think “but wolf, I know plenty of people who lost money in stocks.” If this is your mindset then you aren't ready for this lifestyle. With the right education and strategies, you will be able to create a consistent stream of income through stocks.

If you want to see the math just scroll to the bottom, but if you need a little more info then just keep reading from here.

If you're worried about losing your money just remember these three statements.

1. You don't have to invest all of it at once until you are confident in your skills.
2. You can set stop losses preventing you from blowing your account.
3. You cannot get emotional about investing. Any investment is a little risky.

How to build confidence in the Market.

Step One. Education.

You need to learn the basics of the market… why it moves, what stocks you would be interested in, and what style of investing you want to do.

Personally… I trade one ticker (the all capital characters that identify a stock… ex. F is Ford, FB is Facebook, and TWTR is Twitter.) UGAZ. UGAZ is the only ticker I trade but I look at UNG, and DGAZ to determine when to get into my positions.

UNG makes moves of 1–2% a day on average. But if UNG moves 2%, UGAZ moves 3 times UNG meaning… Yes, 6%. DGAZ is the inverse of UGAZ.. meaning if UGAZ is up 4.5% DGAZ is going to be down 4.5%. UGAZ moves 3–6% a day and we are just looking for 1%

There are billions of dollars out there but we aren't greedy, we just want a slice of the cake.

Step Two. Learn Trading Patterns in the Market and Analyzing them.

Ex. Every Winter, Natural Gas Stocks go up as there is a demand for heating in homes and buildings, and right after winter is over the stock drops again.

First, Learn How Candle Sticks work. Second, Learn Support and Resistance Levels. Third, Learn Candle Stick Patterns. and Fourth, Learn how to read and RSI, MACD, and Volume elements. These will let you know how the stock is moving and potentially going to move. Honestly, That if all you need to know how to read.. and all of these are available in the Robinhood App… I started on Robinhood and suggest you should too… but you will eventually want to get away from this broker as your skills grow.

If you don't have an account and would like to get started and get a free stock with your first deposit then use my link… robinhood.com/aaront1498

You don’t have to use this link if you don't want too but you could get a stock worth up too $500. If you know a friend that uses Robinhood, please use their link over mine.

Step Three. Finding Companies and Creating a Watchlist.

Step One, I would suggest seeing the news aka CBNC. The Stock News. The basis of every trader.

Step Two, Learn about screeners. Screeners are a tool used by people lookings from stocks at specific price ranges, that have moved in specific ways. I would say every night and premarket in the morning look at screens to see which stocks are having good movement for the day.

Step Three, Pick 2–3 stocks that look promising and keep an eye on them in the premarket.

Step Four, Identify the Support and Resistance and Make sure the stock is moving at an Uptrend. When you see these two things identify where you want to get in the market at. Predict where the stock will be at market open… and if you did this right then that means the pattern you're seeing is most likely a winner. But if the numbers don't add up… don't place the trade. It's better to make no trade than to lose 1%.

Step Five. Placing your trade and identify your exit price... I would suggest learning about the order types, and mainly focusing on Market Order, and Limit Order.

Now, Remember your rules… because your blood is probably pumping and remember that you are just excited… not nervous.

Rules

1. Live To Trade Another Day.
2. Your loss is someone else gain. They won because they have an edge. Find your Edge.
3. Don't get greedy. Get your slice of the cake and get out.
4. DO NOT Revenge Trade. If you lost a trade, do not try to buy back in… this will result in further loses.
5. Do Not Take Advice From a Friend Who Heard Something about a Company. Stocks are a lonely game and listening to others will result in you breaking your rules which cause loses.

Now let's get to the Math of turning $5,000 in $50,000 in less than Three Years.

The Math

We are looking for 1% returns a day. Small movements, Easy to Get in and Easy to Get out.

$5,000 * 1% = $50

So $50 a day… Yeah, I know it’s nothing special. But when your money starts to compound from reinvesting you can create insane daily returns in just 2 years.

There are 253 Trading Days in the Year, so 1% a day, 253 a year = 253% returns, if you hit every trade perfect. So let's say you win 75% of your trades you would be making 189% returns only making $50 a day… but After you make another $5,000 with 100 trades you can now trade with $10,000

and another 100 trades later and you will be at $20,000… Then $40,000.

So compounding is gonna make you rich and change your lifestyle just by doubling your portfolio every 100 trades.

$5,000 + (50*100) =$10,000

$10,000 * 1% = $100 a day in just under half a year..

and now… another half a year you turn the $10,000 into $20,000.

$10,000 + (100 * 100) = $20,000

You see whats happening yet? Because if you know that 1% of $20,000 is $200… you would see that you could be making $200 a day in just a year and a half starting with very little capital.

Now you just keep sticking to your rules…

1. Take Profits at 1%
2. Get out of your losing trades fast with a stop loss. I would suggest a .5% or a 1% stop loss.
3. Don't get emotional about your losses

You are now so close to turning 5k into 50k in just two years. You came so far and you can learn more from your losing trades than your winning trades. I say this because you did your winning trades correctly… but your losers… you can look back at your entry and see that “Oh I should have waited just 2 more minutes before getting into that trade.”

Back to the Math…

From $20,000 to $30,000 is only 50 more trades and $30,000 to $40,000 you're only 35 Trades away… and from $40,000 to $50,000 you're only 20 trades away.

Once you get to $20,000 the game gets easy… You have the knowledge and you've already grown this far the compounding is about to take place.

Growth is going to be slow in the beginning… but will all good things, they get more valuable over time.

Congratulations! You are now making $500 a day and on your way to your first $100,000 portfolio.

-The Stock Wolf