yahoo asked: Can you became a millionaire by trading options and how likely is it, compared to stocks, forex, etc.?
Also I know the markets in a slump right now and will probably drop a lot lower, but I want to know for the future.
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Jim Hart asked: Financial success is tough to achieve when people don’t have much money to start with. I have been pondering this dilemma and have come to a logical conclusion, which has tremendous potential for those who can grasp the simplicity of the concept.
Let’s debunk and/or clarify a few issues: First, it does not take much money to make money. Secondly, it is true that you can make more money selling products than services. Why? Because your income potential with services is limited to your ability to deliver quantity-of-service-per-hour. Whereas; a product can be produced and delivered at nearly infinite levels depending on consumer demand and production capacity.
It is also true that millionaires have a superior perspective on how to make money over the common person and this can be proved true by the fact that not everybody is a millionaire.
So how does a millionaire make millions? By investing money into things and ideas that “make money”…
Millionaires want a return on their investments and ROI is the KEY to success. The problem for most people who dream of making a million dollars is how to get from zero, or nearly zero dollars to a million–that’s where the mental grid-lock happens. People can’t figure it out and give up, get a job and do what everybody else does, follow the followers.
As I was contemplating this issue it dawned on me that making a million dollars, with no inertia, is way to complex and basically an unachievable goal, and that is why most people cannot achieve it. Then the simplicity of the process hit me. The way to make a million bucks starting with one hundred dollars. The KEY is ROI. The key is to smart small and apply one rule of thumb to whatever you do and here’s the formula that will allow you to take $100.00 and turn it into a million:
Whatever you invest in with your money, double your profits when you sell it. It is that simple. Knowing this, then you must buy/invest into something (anything) for the lowest possible price with your initial $100.00 so that when you sell it, you recover your initial investment, cover all your costs associated with selling the product, and after the dust settles, you have $200.00. Then, repeat the process. It’s kind of like the “double a penny everyday for 30 days” angle where at the end of 30 days, you have a million dollars… only this is more practical because you are exchanging a product for money rather than just doubling pennies without a source for pennies.
Let me say it again: Invest $100.00 into any product so that when you sell it, it is priced to recover all your costs and doubles your money. Then, repeat the process. That product could be anything from A to Z. The key is buying low, selling high and doubling your initial investment. If you can’t double the investment under this theory, don’t invest. Let’s look at the math:
$100-initial investment.
$200-first ROI
$400-second ROI
$800-third ROI
$1600-fourth
$3200-fifth
$6400-sixth
$12 800-seventh
$25600-eight
$51200-ninth
$102400-tenth
$204800-eleventh (1/4 million)
$409600-twelfth (1/2 million)
$819200-thirteenth (nearly a million)
$1638400-fourteenth (nearly 2 million)
Instead of thinking about “making a million dollars” change your thinking to “doubling your money” on everything you invest in and start small. In fact, starting with $50.00 only adds one additional step to making a million dollars. Don’t have $50.00? Start with $25.00, you get the point. I have pondered this and here is a truth: If you can’t implement this simple, logical plan to make a million dollars, the chances are extremely high that you will never become a millionaire. Why? Because if you can’t do the little things first, you will never get the big things done. Start with whatever you have to invest and double your ROI.
I don’t know about you, but as you are reading this, I am thinking about my potential investments.
Think about it…
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James W. Hart, IV
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Terry Hart asked: One would think successfully investing one million dollars would be a simple matter. Clearly getting a return on $100 dollars is easier but the return in terms of dollars is not much. Investing one million dollars on the other hand, would deliver a very usable return even if you managed just 5%
Clearly the goal of investing one million dollars is to make an income. This sort of money can give anybody a decent middle class lifestyle. Lets say you get a return of just 7% and that would equate to $70,000 dollars or $1400 approximately each week.
If your goal was to just have a passive income there would be nothing simpler than putting the whole thing in a fixed term bank deposit at 10% There is nothing safer and nothing simpler than a bank deposit and the big advantage is you can save money on your financial planner. Nothing easier.
But if you want bigger returns, you may need to park your money in real estate because historically, you can get a double return. Around 7% on the appreciation and another 7% on the rentals you may receive.
Of course some people that have amassed a million dollars have special skills and expertise. These skills can be used to invest in the form of a business that yields a passive income. An investment like this is much more lucrative and a return of 30% to 70% is not unheard of. This is also a lot more risky and to a large extent is based on your abilities and skills. Obviously you should assess your options carefully but these are a few sensible ideas.
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JLOV7 S asked: I am interested in becoming a stock trader for profit. Only for myself I want to make a million dollars as soon as possible help me.
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XxForever&EverxX asked: I’m playing a stock market game for my economics class…i have to have 3 questions ready for a financial advisor coming in to speak to us….any help would be great and i need help understanding the whole stock market!
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Terry Hart asked: If you have a million dollars to invest there are three possible scenarios or considerations before embarking on this. A million dollars is still, even today, a heck of a lot of money and the income it can produce, even in a humble bank term deposit is still enough for any middle class lifestyle to be afforded.
At around 7% per year, a million dollars simply put in a bank would deliver a before tax return of $70,000 or around $1400 dollars a week. Last time I looked, that amount of money can still buy a steak dinner every night and a holiday once a year. It is a reasonable return, but the first consideration you need to think about is the growth of that million dollars.
If you lived off the income the million dollars produced for you in a bank term deposit, then each year the capital will not be compounded, in fact if you spent it all, the interest component. In 10 years or 20 years or 30 years time, your million will still be a million dollars. However, inflation would take care of a nice large chunk of that money by 30 years time.
The second consideration is connected to this diminishing million dollars in 20 or 30 years. Typically when they talk about inflation, they do not talk about living expenses for people that own their own property. Usually inflation refers to the cost of housing and that historically goes up and up and up each year, historically to the tune of 7% a year in appreciation and 7% in possible rent returns. So in actual fact, that diminishing million dollars is not really diminishing if you are not interested nor need housing. If you think about it, things like cars, tv’s food and a host of life’s other luxuries and necessities are actually cheaper in today’s dollars compared to 10 or 20 years ago.
The third consideration is connected to the last. Real estate is historically a very safe place to park your money. Especially if you are buying for the long term it really matters little what part of the economic cycle you are buying in especially if you dont have finance to contend with. Real estate as stated bove historically returns 14% made up of rent and capital appreciation and therefore would be the most sensible choice for the investment of a million dollars.
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William M asked: I am 17 years old and when I turn aged 18 in a few months I intend to try and become a millionaire using Options, hopefully by age 19, and at least age 20-21. Is this possible to do reasably quickly by holding a long stock position for a stock?
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William M asked: I want to invest into stocks as soon as I turn aged 18. I also want to become a millionaire as I invest. What are the best stocks to invest into to become a millionaire?
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Ni asked: What is the easiest legal way to you make a million dollars in 3 months?
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William M asked: I am 18 years old and I want to know what is the best way to become a millionaire using the stock market? please help me by recommending the best investing instrument to become a millionaire on the stock market. Thanks.
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