Home Finance How to Make $6 Million in the Stock Market

How to Make $6 Million in the Stock Market

How to Make  Million in the Stock Market

Can you make $6 million in the stock market? Sure. Start with $10 million and lose 40%. My point is I have no way of knowing where you are coming from. But I knew a trader who took his $50,000 account and ran it up to $6 million in just 5 years.

How did he do this? He would simply look for the best,strongest stock in each market cycle and go all in on that stock. His initial stop was 10% to 15% and he would ride out those 20%+ corrections along the way. Often when he doubled his money he would then take out leverage with his stock broker to buy more. He would hold these stocks for 6-12 months and often make 200% on his money. Then he would look for the next one. He told me he only made 6 trades in that 5 year period to obtain this amount.

He got to the stage where was trading “house money.” Often he would say to me “well even if I take a hit here I only lose the house money. no big deal. This was fearless trading. And it is the only way anyone can make such massive gains. No money manager or professional fund would dream of investing this way. Their jobs would never allow for it.

How did it end for this trader? Well he was all in a stock called CROX in 2007 and it gapped down 30% overnight. He lost over $2 million in one night alone. Ouch,. but to make it worse he held on for another $1 million loss. What a loser right? I mean there you go everyone said he was gambling. He told me he expected that day to arrive one day. You “play with fire you will get burnt” But so what? He still took a $50,000 account to over $3million in five years. Do you know of any fund that as ever some anywhere near this?

What lessons can be learned?

There’s no doubt about it if you want big gains in the stock market you have 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 ability to trade it.

Scared money cannot make it. You almost have to be uncaring about the losses and draw-downs.

Huge gains in the stock market are possible and have been done by traders.