How would you like to be a millionaire?
Most folks equate being rich with being a millionaire. As of 6/26/2012, Wikipedia reports there were more than 10 million millionaires in the world. If you are not one of them, but would like to be – you need to learn how to make your money work for you, instead of you working for your money.
How compounding helps to make you a millionaire faster
The harder you get your money to work for you, the quicker you will become a millionaire. As the table below shows, if one starts with $10,000/= and doubles one’s money each time – in as little as eight intervals, one will be a millionaire. The adjacent columns in the table below illustrate how long it will take to become a millionaire if one achieves ‘only’ a 50% or 25% return each time. While it may be difficult to achieve such returns with traditional methods of business, investing in the stock market gives ordinary people the same opportunities as ‘rich’ folks. Options traders have the added advantage that they can use stock options to both safeguard their wealth (‘decrease risk’) as well as speculate for substantial profit (‘by use of leverage’). If renowned investor Warren Buffet uses stock options as a part his investing and trading strategy, you should consider learning about them, too. The best way to learn how to make a million is to learn and do what millionaires do!
The reason why individuals keen on learning how to get rich (i.e. how to make a million) may be interested in the stock market is because of the sheer number of opportunities presented by the stock market to those who know how to take advantage of it. Some of the best such opportunities are actually scheduled every three months – known as ‘Earnings season’! In fact, every quarter, a large number of publicly traded companies report their earnings for the previous quarter. Analysts at all major brokerage firms follow the large companies and attempt to predict what the earnings will be. Stock prices rise and fall depending on such expectations, and if the company meets, beats or misses the expectations of the analysts. For the stock options trader, earnings season is like having ‘Christmas come four times a year’!
While the opportunity to make millions by investing in the stock market is available to all (even those with a limited resources), it is critical that folks take the time to learn investing and trading before they risk any of their money. With the power of the internet, a wealth of information is available to all … and, much of it is available for free! You just have to decide to take the time and make the effort to learn.
Newcomers to stock investing should read How to Learn Investing and Trading before delving into stock options trading. Beginning Options Traders looking for a strategy to streamline their options trading should read How To Trade Stock Options Online. Investors and Traders who have never traded stocks or options online should visit How To Trade Stock Options Online Pictorial Guide to see how easy online trading can be with the right online trading platform.