Updated: Apr 21
Have you ever felt broke and desperate worrying about living your whole life in a rat race?
How do I know? Because I was in the same place where you're standing. I want to help you escape your exhausting lifestyle and help you retire in your 30s. First of all, it's not as hard as it is portrayed. Chill! Influencers and other content creators have made it look so hard because they don't know what exactly to teach you the ways to become wealthy. Instead, it is easier for them to make you believe this is a reality so this is the way.
Typical bullshit! But it's not that easy either.
I advise you not to fall into either of these traps which make you think it's way easy or totally impossible. The key here is being neutral and realistic. We'll discuss shaping your mentality in a different blog.
In this blog, we will focus on reaching our first million by trading in the stock market. Before jumping into the process, I would like you to understand the difference between Trading and Investment. If you want to know more click here, it will redirect you to another blog that explains it more in detail.
Trading in the stock market is the process by which you buy and sell stocks of a company. It is basically a very simple concept by which you can make money if you know what to do exactly.
I know I said it is rather a simple concept but never easy. It takes discipline and a heightened level of steady mind to be successful. Most traders fail because they either think it is an effortless process or a backbreaking pitfall.
So, what can we do to achieve our goal now? Spend your first year learning the core concepts and practicing trades. During this period, trade only with a paper trading account. These paper trading accounts make you gain real experience with fake money. Don't stake your money too soon.
Learn price action, pivot points, trends, moving averages, support and resistance, and make yourself a strategy that combines all these things. Learn proper entry and exit points. Now, combine these separate concepts to form a strategy. Knowing what each chessman (chess pieces) does is the first step, then, you have to make their strengths and weakness into a perfectly molded plan to finish your opponent. In the same way, you should have a strategy for you to be profitable.
Now if you choose to trade in the equity, and not in the f&o segment, it is highly impossible to gain 10% percent profit in a single day. But it's near possible to earn at least 5% each day. I'm not saying you will gain 5% percent profit each day. But I'm pointing out the possibility that you could.
Let's say you trade with 10,000 USD. If you manage to make 5% percent profit each day, it will be doubled just in a month. You'll have 20,000 dollars in your trading account now. In a month, your capital has grown exponentially. Keep repeating this for 8 more months, boom!
Now you made your first million within two years. Technically speaking it took you less than a year.
No matter how small your initial capital you can grow it exponentially within a year or two with proper knowledge, experience, and mindset.
Though it might sound too easy, you can't make profits every day. Somedays you may lose your trades. But don't make you lose run big. Make small losses and let wins play big.
I suggest you learn and trade only with a paper trading account in the first year because you have to learn to control your emotions. Knowing that you're money is not at stake will help you make better judgments, hence, not letting your emotions cloud your analytical skills.
I wish to conclude by giving you some comfort for those who've been worried about being successful. I personally know many people who make consistent profits in the stock market. It's totally possible. Good luck!
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