Can you make $6 million in the stock market? Sure. Start with $10 million and lose 40%. My point is that I have no way of knowing where you came from. But I knew a trader who took his $50,000 account and raised it to $6 million in just 5 years.
How did you do this? I would simply look for the best and strongest stocks in each market cycle and bet on them. Its initial stop was 10-15% and it would top those 20+% corrections down the road. Often when he doubled his money, he would leverage his stockbroker to buy more. You would hold these shares for 6-12 months and often earn 200% of your money. Then I would look for the next one. He told me that he only did 6 trades in that 5 year period to get this amount.
It reached the stage where “house money” was traded. He often told me “well even if I get hit here I just lose the house money. Not a big deal. This was a fearless trade. And it’s the only way anyone can make such massive profits. No manager of money or professional fund would dream of investing in this way.
How did it end for this merchant? Well, he was all in on a stock called CROX in 2007 and it was down 30% overnight. He lost over $2 million in a single night. Oh,. but to make matters worse, he endured another $1 million loss. what a loser right? I mean, there you go, everyone said he was gambling. He told me that he hoped that day would come one day. If you “play with fire, you’re going to get burned” But, so what? He still took an account from $50,000 to over $3 million in five years. Do you know of any fund that, as always, comes close to this?
What lessons can be learned?
There is no doubt that if you want to make big profits in the stock market, you need to take bigger risks and be more focused. Diversifying will mean average results at best.
You need 100% conviction and confidence in your trading method and your ability to trade with it.
Scared money can’t do it. You almost have to be indifferent to losses and drawdowns.
Big gains in the stock market are possible and have been made by traders.
