Today, I’m going to share with you the three main ways that you can make millions in a stock market.
A lot of people are interested in how to make a lot of money in the stock market.
Or how to make a lot of money – it doesn’t matter where.
I think you need to recognize that there is no such thing as fast money or get-rich-quick kind of things that pan out in the real world.
Sometimes it does happen. Sometimes people get lucky, or they get a connection. And all of a sudden, they blow up a business, and it makes things go fantastic.
However, in most instances, the road to success is slow. In the investing world is the same thing. It’s a slow road. It takes time to get your investments to payout. That’s because if you’re investing through dividends, if you need stock appreciation, it takes time.
You have to be patient. It’s a crockpot world even though we want things in a microwave way. We want results quick.
If you want to make millions in the stock market, there are only three ways to do it. And I hate to burst your bubble, but it takes time.
Here’re three ways:
- you have to have a ton of capital
- you have to live a long time
- you have to take a major risk
That’s the only way. And sometimes, a combination of these things can help you pan out and grow your nest egg.
Maybe you have more capital than the average person, and you’re willing to take on more risk. All of a sudden, you can make more than the average person.
For example, if you’re investing early on, the same thing – you can make probably a lot more than the average person. That’s because many people don’t start until later in life to do the investment.
Then you don’t need as major risks or take on significant risk. And you don’t need a ton of capital because you’re starting a lot sooner.
Most people want quick results. But these are the only three ways.
Take a look here.
I’ve gotten three ticker symbols:
- SPY
- MSFT – Microsoft
- MCD – McDonald’s
Currently, they’re trading around $302 for SPY, $138 for Microsoft, and McDonald’s is trading around $213 per share.
The dividend payout per year on SPY is $5.73, for Microsoft is $1.84, and McDonald’s is $4.64, and that’s per share.
Let’s say I invested a huge amount of capital. If I invested almost ten million dollars, it’s at that point where my yearly dividend income is around $183,000 a year. That is a mid to higher-paying job in a doctor or an accountant or something along those lines.
Remember, it’s almost ten million dollars, and you’re only getting $183,000 per year.
If you’re only investing 2000 shares of peace, now you’re putting it about a million dollars. And you’re only getting a return of about $25,000 for a million dollars. Think about that.
Again we’re negating and brushing off the part of the appreciation. We don’t know if they’re going to appreciate it a lot. We don’t know if they’re going to decline a lot. We’re just talking about dividends. Let’s keep it simple.
In this case, $25,000 a year on about 1.3 million dollars invested.
If you had a $125,000 job and you wanted to retire on your dividends, here is how you can do it.
You play with the numbers a little bit. Start bumping this share counts up.
It’ll give you an idea. If I go to about 9,000 shares each, I’m up at about $110,000 a year from dividends. Now, to have that and to make that, I have to have 5.8 million dollars saved. That’s a lot.
Maybe you don’t have that capital.
Well, the other approach is you could live a long time.
Here is your first year and you start at age 25.
Let’s say you’re making $3,500 a year from dividends. It’s not $25,000 a year, and it’s not $50,000 a year. It’s not $150,000 a year from dividends.
Each year you make $3,500. Of course, I understand you could reinvest that back in. You could invest more, but that is not the point.
Let’s keep it simple.
We continue to scroll down.
By the time you’re about 270 years old, you’d almost have a million dollars.
That’s a long time.
The thing is if you don’t have a lot of cash, you’re not making a lot every year. If you don’t have a lot of cash, you might only be making $3,500 each year.
In that case, it’d take you a long time.
A lot of people want to start trading options and those kinds of things.
That’s the case even when they don’t know what they’re doing. Instead of buying shares and getting a stable return, they’ll take high-flyer risks.
They might do Netflix, and they go like deep in the money. They might be saying they’re going to buy a bunch of these singles – 10, 15, 20 of them.
In this case, if the stock explodes a bit, you could make $2000, $3000 pretty quickly. Or even much more depending on what you’re doing.
You can earn $32,000 if it goes up to $20 or $30. And that would double your money pretty quickly.
All of a sudden, if you’re making a 50% or 100% return on your investment, that’s a great money. But remember you’re taking on major risk. The thing is, if it doesn’t work out in your favor, you can lose quite a bit of your investment.
Or all of your investment if you’re trading calls or just trading options, and you don’t know what you’re doing.
Those are the ways and approaches that you could make a ton of money. You have to have a ton of capital if you want to make a lot of money. Number two you could live a long time or number three; you could take on major risk.
Of course, a combination of this is where people fall in.
Let’s say you have an average job.
If we allocated points here, some people might have ten points.
Think of it as a video game character. Five points for running, three points for speed, and then you have the remaining points for firepower or something.
The same thing here.
If you’re not making a lot of money or you don’t have a ton of capital, you have one here (next to capital).
But you have a long time to live, and you’re maybe investing when you’re ten years old. In that case, you have an eight over here. And the rest is one point. Perhaps you don’t want a lot of risks, so you have one point there (next to major risk).
Your big strength is the time factor. For someone else, maybe they have a ton of capital (person B). Here they might have 7 on the amount of capital.
They don’t have a lot of time – this could be like 2. And they’re not interested in a lot of risks – so this could be 1.
Person C has 5 with the capital, 3 with the time, but they are ready to take some risk – 2.
Everybody’s different. Some people are tremendous risk-takers. These people have 6 on the risk, and they might have 3 on time and 1 on the capital.
Everybody’s at a different point, and they have different balances in life. You must realize and recognize where you are because there’s no fast road or approach to making a ton of money in a stock market.
Unless you’re lucky and things work out for you. In that case, more power to you and congratulations and job well done. But for the majority of people, it is a crockpot world.
Yes, we all want results quickly, but in the market, things take time to evolve. Things take time to develop for getting paid with dividends long term investing even trading options, even swing trading they take time.
It takes time to build your account, continue to work through it, and evolve your earnings and financial potential.
I hope this makes sense. I hope it doesn’t let you feel down about the situation. But think about it realistically and where you are personally.
You need to know that there’s no quick road or quick path to riches.
