In a perfect world you inherited wealth that allows you to own things. In real life you are probably working with your paycheck and the few bucks that you can save after paying your bills.
I know you want to own rentals or buy a truck but usually you will need a few bucks to get in the game. How can you do that? Well, insert the stock market.,
For a while I was over the stock market. It can’t Cashflow, you can’t control it, its overvalued. The stock market, when you have big bucks is not the game you want to play.
However, the stock market allows you to turn small into big. If you are smart and can time your plays right you can swing trade, day trade, trade options, trade options into earnings or go long into earnings.
Swing trading is when you buy something that has the momentum to make a big move in a short amount of time. You can tell this is going to happen when there is a catalyst or sometimes bad press. You make your money in stocks when you get big moves and swing trading allows you to do that and pick up outsized returns that can make your small money big.
Options: Options are a form of leverage. Options allow you to buy a contract which is 100 shares of a company. This is important because you don’t actually have to buy 100 shares (you have small money remember) to get the benefit of that 100 shares. For example, you want to invest in AMZN but you have 1k. Congrats, you can’t invest in AMZN – You can, however, buy one contract of AMZN for $250. If AMZN (Priced at 1857 today) goes up 10% and you own one share, you get 180 bucks but if you own options you get that 180 times 100, $18,000 dollars on your $250 play. I think that’s worth the price of admission fam.
The downside of options is that you can lose all that you invested. The upside of options is you can see 100%-400% and sometimes infinite returns with options. My best option play yielded me about $10k in one day when I bought ahead of earnings.
A lot of people are trying to get to the point where they don’t have to play the stock market but until that time, they should be playing the stock market. You should systematically throw money into the market. As you get paid, pay yourself first and put that money in the market every month steadily taking risk and seeking to grow your baby money.
I love the quote I saw from wall street trapper which was save your money in your brokerage account. I always say that investing is a way to trick yourself into saving. This is a double whammy. You invest, save and throw your money at some risky stuff to grow your cash up. What do you have to lose? *Donald Trump voice*
The stock market can be conquered but it will take work, reading and research. You have to immerse yourself in the markets just like you immerse yourself in real estate content like podcasts, books and conferences.
This is important because when you do this you will spot patterns; you will spot trends you will start seeing money making opportunities. Those opportunities, coupled with either a swing trade or an options play will grow your paper.
Do not believe that working, saving and trading time for money is going to grow your money up. You will have those anyway. You can always work and you will always work. What makes you better is when you do what other people are doing and then do more on top of that. That MORE is putting your money to work. Do that in the stock market before you get to the bigger stuff. You must take advantage of the stock market to amplify what you earn. Be great.
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Thanks for reading!
Be great, invest well,