posted
I posted this in the Day trading area, but it doesnt get that much traffic. Here is my question for anyone who might know to answer.
I'm new to trading so Im a bit ignorant. I was thinking that I could start out with $10,000 and make a .5% to 1% gain on five different stocks throughout the day for a year and keep compounding the profit to make almost $1,000,000 in less than a year.
Does anyone think this is wishful thinking? Lots of stocks gain 1 or 2 percent within the day so I dont see why it wouldnt work.
-------------------- I'd just like to retire at 26. Posts: 113 | From: cleveland, oh | Registered: May 2006
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quote:Originally posted by chevon2020: I posted this in the Day trading area, but it doesnt get that much traffic. Here is my question for anyone who might know to answer.
I'm new to trading so Im a bit ignorant. I was thinking that I could start out with $10,000 and make a .5% to 1% gain on five different stocks throughout the day for a year and keep compounding the profit to make almost $1,000,000 in less than a year.
Does anyone think this is wishful thinking? Lots of stocks gain 1 or 2 percent within the day so I dont see why it wouldnt work.
Its not possible at the rate you stated. For one, you have 104 days of the year that are weekends. Then you have all the holidays so add up 2 more weeks....so you have only about 247 trading days. Then you can't trade your entire balance every day unless your using a 401k where you transfer your stock from stock to stock...no cash-outs or you have to wait 3 days for funds to clear. On top of that....you can only trade the same $1.00 once every 3 days. So again, you divide your 247/3 and get 82 1/3 trades. At that rate you claimed you would only have a possible value of $22,000.
Posts: 2367 | From: Detroit | Registered: Mar 2005
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Try just investing it in one stock and just leave ,t hats what i did , and thats why i am currently a millionaire Posts: 24 | Registered: Sep 2006
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The chances of that making you a millionaire is slim to none. So you say your a millionaire....what stock did you buy and sit on, did you sell your full position, how much did you pay in taxes???? Some of us have had our accounts show us having far more than what we had expected but then when a stock screws up like that one that did a 1,000,000/1 split.....everyone that bought that stock went up over 10,000%....but realized that they couldn't sell and the company froze all trading and did a R/S. Its nice to think you have some money but I doubt you really have that much.
posted
this is not that hard to achieve, only hard part is starting off once u hit 10k its easy from there on out 3% equals $300 then.
I think the trick is to daytrade and try to make 5-10% a week and then maybe add another $50 a week from your paycheck. Think of it as if you invested in a Bond or a CD or w/e only you have control in your Rate of Return. 5-10% is highly achievable, you'll prob be able to get more than that ez on good days. 10% a week is 520% a year on your original investment maybe 1000% a year when u add the $50 a week and your money your making on stocks. U'll be a millionaire in 5-10 years ez doing this, its not gonna happen overnight
im starting young so I HOPE to be a millionaire by the time im 30 and keep going. Its a long term project and i personally think that holding onto stocks for a long period of time will make u money but doing this will get u that money faster
-------------------- who says you cant trade stocks at 17!!? Posts: 288 | From: Wisconsin | Registered: Apr 2006
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posted
once u hit about 50K maybe less LOSE THE PENNY STOCKS only invest a small amount 10k in em, lots of money and quick returns are easily to be made in the bigger stock companies and they are safer
-------------------- who says you cant trade stocks at 17!!? Posts: 288 | From: Wisconsin | Registered: Apr 2006
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quote:Originally posted by anders19199: this is not that hard to achieve, only hard part is starting off once u hit 10k its easy from there on out 3% equals $300 then.
I think the trick is to daytrade and try to make 5-10% a week and then maybe add another $50 a week from your paycheck. Think of it as if you invested in a Bond or a CD or w/e only you have control in your Rate of Return. 5-10% is highly achievable, you'll prob be able to get more than that ez on good days.
10% a week is 520% a year on your original investment maybe 1000% a year when u add the $50 a week and your money your making on stocks. U'll be a millionaire in 5-10 years ez doing this, its not gonna happen overnight
Ok...first off. Your young and obviously in experianced with numbers. If there is 52 weeks in a year and you make 10% a week....that does not equal 520% which you thought 52 weeks x 10% = 520%. That is 100% wrong. Its 313.8428376721% Your math would be like buying something at the store on clearance where they take 75% off plus an additional 50% off....they're not going to give you 25% of the value as your change.
Sure adding money to your account is always a plus but we are talking about starting with "X" dollars and re-investing the initial ammount plus all the gains over and over and over again. Sure its easy to find a stock where you can make 3-5% daily but you can't spend the same money each day. So in that aspect, its not going to happen overnight or even in a few years.
3% of $10,000 does = $300, but it doesn't equal $300 after that....$10,000+300 gain is $10300. 3% of that is now $309 and so on. If your account is growing like you hope...its going to be hard to find several stocks as your money grows to invest in. You can't dump $50,000 in a stock and day trade it and expect your $50,000 not to tweek the market. Especially when your messing with penny stocks. Sure you can make boat loads of "%" with penny stocks but not lots of "$" because you buy such a large volume to where you buying more than the average volume.
The only thing that is EZ is losing your money when it comes down to investing. Most people are experts at that....usually because they don't know when to bail out and cut their losses.
posted
I agree with almost all of what you said, except that it is possible to reinvest the money. You just have to apply for a margin account.
Posts: 189 | Registered: Apr 2004
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ok so you got me there, but it is still very achievable in 5-10 years with consistency. 520% is high but when you add the money your making you start averaging more in return, you should easily double to triple your money in a year starting with at least 10k if u invest wisely and consistently. otherwise stocks are just not for you!
penny stocks do give u a headache and can easily lose you money if u dont no what your doing! you have to move away from penny stocks and get in the bigger boards at sum point. i understand that. losses will happen but as long as u dump your losses and not baghold its not going to KILL you if your a consistent trader and dont dump everything in one stock, i would NEVER do that. learned that from NDOL ended up averaging shares to 60cents and sold at 50 got greedy coulda made a 3 bagger and now wish i had sold. PENNY STOCKS ARE NOT FOR LONG TERM AND ARE NOT PREDICTIBLE to a point. I would keep always about 10k in pennys because thats where all the fun is trading!!! but ill also hopefully have sum in big stocks at the same time
THIS IS ACHIEVEABLE that is my point im trying to make
heres sum easy 3-5% gainers if u watch them and no when to buy and dump NSMG, PGPM (risky ones) ERHE ECFL been with this and watching for a while nice 20% gains in their when it hits .50-60 FMNJ then maybe hit a big one like SLJB!! which i'm kickin myself over rite now. . wanted to buy but my funds werent settled wasnt sure waht to do
as your account goes up start looking for sum slow increasers/and swing trade in big market stocks NICH IIP watching that one since $11
ALL IN ALL this is achievable am i rite Bill2Drunk?? 10,000-1,000,000?
-------------------- who says you cant trade stocks at 17!!? Posts: 288 | From: Wisconsin | Registered: Apr 2006
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posted
thanks everyone for your replies. I wasnt really looking to trade in pennies with this idea, but the big boards. I see alot of stocks making 1-2% gains. If I was looking to pennies, then I would look for higher gains than this. I suppose this wont work, if it did then everyone would be rich, as someone pointed out to me already.
-------------------- I'd just like to retire at 26. Posts: 113 | From: cleveland, oh | Registered: May 2006
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posted
Hell, we all want to retire. The key is making your money work for you and that usually takes $1,000,000 saved up. The key to retirement is spending only the interest per year and maintaining the principle. This way you will always have the same amount coming in each year and you will never go broke.
Posts: 2367 | From: Detroit | Registered: Mar 2005
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quote:Originally posted by R1 Man: Hell, we all want to retire. The key is making your money work for you and that usually takes $1,000,000 saved up. The key to retirement is spending only the interest per year and maintaining the principle. This way you will always have the same amount coming in each year and you will never go broke.
total BS...
you can start with less $100k in capital...
the KEY is that it's actually *capital*...not rent money, etc
posted
I based it on 10% return and someone wanting $100,000 income.
Sure $100,000 sounds good but if you only make 10% a year, then you will only have $833 a month spending without hurting your capital.
If your retired you can't be in HIGH risk or Medium risk. Its all LOW risk investments. And with low risk, you expect lower return.
Posts: 2367 | From: Detroit | Registered: Mar 2005
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posted
It might be possible, but it depens on the finance product and many, many luck. Investment in derivatives with high volatility is needed, e.g. derrivatives in foreign exchanges (Forex-based Derrivatives), but this is high risk.
Excuse me for my poor English - it's a long time ago that I used it.
Posts: 1 | From: Berlin, Germany | Registered: Sep 2006
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