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How to Get Rich in the Stock Market?

 

Strategy to Get Rich in the Stock Market

I wanna share with you my strategy on how to get rich in the stock market, and how people do get rich in the stock market. And if you're looking for some sort of magical system, I wanna honor your time, I have no magical system, I have just very basic, very tried and true methods that need to be done. 

Strategy to Get Rich in the Stock Market

And I get it, as soon as I start to say this stuff, you may be thinking, what? But the thing is, most people just don't do what I'm about to talk about and then I guess, if you don't believe me, just run a little Google search, and you'll see all sorts of headlines out there about people barely having any money in retirement, people not having any savings, and they can get really, really nasty out there. But like I said, this is what rich people do.

 This is how wealth is built, using this strategy. And it's a basic strategy.

Now, I do put a little twist on it, 'cause I realize, most people aren't looking to trade, aren't looking to, whether that be swing trade or day trading, most people are just looking to invest. So this video still pertains to those of you, but like I said, what I do is I like to do and approach all of this in this way. Now this is, I mean, I'm a little pass this point, but this is assuming that you're just getting started and you want a way to get involved in the stock market so that you can start to build wealth and you know, grow your money over time.

 So this is you right here, and so this is Sue, and she wants to, right, start to make some money in the market. Well, the first thing she needs to do is right here. Okay, this is step one, and I get it, a lot of people aren't gonna like seeing that, what? I just can't put 50 bucks in the stock market and walk away a millionaire, I wanna go Lambo shopping next week, no, that's not how it works, okay, sorry.

You're not gonna be sipping Cristal from your yacht, after you arrive on your private jet because you have 100 bucks and you can, you throw it into the stock market or you know, the big coin market, whatever.

 I get it, that's an easy sales pitch. That's a great marketing pitch, that's just not the reality of the situation. So you're gonna need a job. Now, this is what I would recommend everybody to do, especially like I said if you wanna do trading. I know the temptation is to do this.

So you make a job and let's just say, for example's sake, you have $500 that you're ready to use. So I mean, after your job, you decide, I wanna put $500 towards growing it. I want to make this $500 every single month or you know, whatever timeframe that is, maybe every three months, but I wanna put it to in ways that'll actually grow. Whereas, give it to Netflix, and I mean, I don't get any other, that's not gonna grow your money.

But let's say you have $500

The big temptation is, and what I wanna really discourage you from doing is saying, you know what, I wanna be a trader, right, so over here, you wanna trade. So there's, yep, so $500, 100% of that goes to trade. I don't like that, and here is why I don't like that. Trading is risky. Trading is difficult.

Now the good thing about that is, what I just talked about, it is, it's high risk, high, high risk to be using your money for trading. I have no problem saying that, that's the honesty behind it, that's just the fact of the matter. But if you do it right, if you get knowledge, if you get a strategy, and you approach all this in the right way, there is gonna be high reward, all right, there's gonna be opportunity out there to do very, very well for yourself. But you still had to factor in, you still have to acknowledge the fact of this part right here, but it is high risk.

I mean, you could lose everything if you go caput

 But I would still argue that you still wanna be involved in it, because there is high reward, and now when I say you wanna get involved in it, this is under the assumption that you wanna approach it in a logical and a methodical way, you wanna learn, you wanna invest in yourself and you wanna build strategies and all that.

So that's what I'm assuming, but it is still high risk. So like I said, you gotta avoid this temptation. And you gotta avoid it, and instead as I said, this is what I've done and this is what I still do but that's a little more complicated now since I have real estate investments and just other stuff, but this is at the core, this is still what I do. Instead of just taking 100% of whatever money you have from your job and throwing it into one avenue, diversify.

So in this situation, and this number's up to you, take 50% of the 500 and use that for trading. That way, only 50% of that money is in a high risk category. So all right, Clay, well, that still means there's 50% left, what else would I then be doing? Well, with the other 50%, I want you to invest it, okay? And this is what most people are doing.

 Now, if you're someone that says I have no interest at all in trading, well then at this point, all right, 100% of that would then go into investing. Now what's the difference with investing versus trading? Well investing has a low risk, sorry, not low risk, high reward, that would be pretty cool, but low reward.

Now what do I mean by low reward? What do I mean by low risk?

 The stock market, I mean it's a mathematical fact, you just Google it through history, you run some numbers, especially when you start to factor in compounding interest, which is the greatest thing ever, the stock market turns people into millionaires. And there's no doubt about it. Wait, it turns people into millionaires? Why are you saying that's low reward, then? Because it takes decades upon decades upon decades.

 That is why, yes, over decades, the market goes up, that's been the historical trends since basically the beginning. Hence the low risk part. Historically speaking, the markets go up and up and up, and you can open up a can of worms in terms of why that's the case, what's manipulated, it's, I'm not gonna go there. My point is, that is why I consider it low risk, because over extensive periods of time, decades upon decades, in other words, none of this is happening overnight, but over decades, it's trending up. And I'm not asking to take my word for it, just go running a Google search for historical performance of the stock market, and find a nice little line chart and you'll see that line chart goes up and up and up over time.

Now there's definitely some things where it goes like that, but overall, the trend is up, hence the low risk. And then the low reward is, well yeah, it'll turn you into a millionaire, but it's not exactly happening fast. Whereas in trading, you can generate some very nice returns for yourself in very short amounts of time, relative to decades and decades. So I don't want this to come across like, hey, start trading, and then next week you're gonna be making these, that's not what I was saying, I'm just saying, compared to decades upon decades, trading can produce some very nice returns.

But again, we have high risk, so that's where you wanna diversify this cash into a couple different areas. Sure, put some more in a high, riskier area, such as trading. But you also wanna start to get some good, firm, passive cash flow that comes in by investing it. Now I should also note, this assumes you're investing it in a good, strategic, a very wise way. So that's the other assumption right there. If you're just out there saying let me find a dividend stock that pays 40% dividends, that's what I'm investing in.

That's not a good strategy. If you don't know why it's not a good strategy, in fact, I'll put a link below to a video that's all about high yield dividend investing, which is actually a terrible way to go about it and I'll explain in that video below. But my point is that assumes, both of these assume that you're going about it in a valid, a knowledgeable and a rational way.

And then of course the nice underlying thing, which a lot of people, I don't think even realize, so Sue, once she's doing all this, she doesn't even realize that, what has she all of a sudden done? Well, she has built multiple streams of income.

I think that's how you spell it. I'm sure somebody in the comment section will correct me if that's not right, so thank you in advance. But what has Sue done? Well, now all of a sudden she has extended her streams of income. She has the job, she has investing, and then she has trading, and I'm putting the question mark by that, because that one again is the high risk.

 So that doesn't mean that that's for sure gonna become an income source, but at least she's trying, at least she's taken on some risk, but she's also not putting all her eggs in one basket by going all into trading.

She's still putting herself in those situation where like I said, when done right, that's still gonna provide some income, too. So how do I think you can get rich in the stock market, what is my strategy? Diversify, don't go all-in in either way. If you have an interest for trading, if you wanna learn more about trading, if you wanna do that, then definitely get involved.

 Just remember, it takes money to make money, so ticker symbol JOB, you're gonna wanna start there, and then from there, begin to diversify your funds. So do you do something similar? I'm curious in the comment section. Maybe you don't wanna do 50%, let me know your split. Maybe some people are saying, no, I do 70% one way, 30% the other, so I'm curious if you do something similar to this, let me know in the comment section, what sort of percentage splits do you use.

 I'm not saying that it's gotta be 50/50, but I would say that's a good starting place to base things off of, and then you can build from that point, but as I said, let me know in the comment section, or if you just have any questions in general.

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