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  • Writer's pictureIshfaaq Peerally

How to Become a MILLIONAIRE in the STOCK MARKET in 10 years


First of all, let's talk about some of the changes I made in my portfolio today. I closed some of my $MS trades and is going to close more in the coming weeks. The reason is simple. I am watching too many eggs. I have investments in 4 ($MS $JPM $WFC $GS) of the 6 big banks while in my opinion, JPMorgan Chase is far better than all the others, so why should I invest in them? I'll make videos about each of these companies soon telling you why I choose JPMorgan Chase. I'll be investing in $CXO $PE and $SKWS soon.

Do you think it is possible to turn $1000 into $1 million in 10 years? I decided, at age 21, that I was going to become a millionaire before I turned 30. I was planning to do that in the stock market alone. I'm currently 24 and I still believe that it is possible. I actually started with less than $1000 and over the years, I've added more money. But for simplicity, let's say you want to do that with just $1000.

The simplest thing you can do is invest in the $SPX500. The average return is 10% per year so you'll have $2593 after 10 years. You would have to wait 72 years to become a millionaire at this rate.

Option two is try to beat the market. Peter Lynch was able to make 27% per year when he was managing his Magellan Fund. At this rate, after 10 years, you'll have $12761. You actually need to wait 27 years to be a millionaire.

Now let's ask ourselves another question: How much should I make per year? The answer is 99.526% (roughly 100%). So, if you double your money every year, after 10 years, you would become a millionaire.

In one year, there are about 250 trading days and in order for you to achieve 100% per year, you'll have to yield 0.277% per day. So, in theory, if you start with $1000, and yield 0.277% every trading day, you will become a millionaire after 10 years.

Is that practical? First, you'll have to account for the spread on the exchange. On the NYSE and NASDAQ, it is 0.2%. You need to account for short-term capital gain tax(in the US , it is taxed same as income tax, let's assume 20%. In my country 0%, you just pay income tax once a year). You also need to account for brokerage fees(on eToro it is 0% on stocks). Taking all of that into consideration, it seems, that minimum you should aim for about 0.7% a day. It is still less than 1%. But for simplicity, let's say you aim to make 1% a day, or even a week. With compound interest you can turn that $1000 into a fortune.

I know that it looks too easy to be true. But actually very few people would want to make 1% a day. They are looking for 20% a day. That's why you see people jumping on $BYND $BTC . Last week, there was that probe that the US government launched on big tech companies and $FB was very volatile on that day. So, I bought some shares and sold about 30 minutes later for a 1% profit. So, whenever you see volatility in a stock, you can always aim to make a few percentages.

Of course, all of this was only theoretical. In practice, I won't advice anyone to do this with $1000 unless they have a minimum of $10 000. And it demands a lot of discipline to know exactly what you are doing. For example, I could have done this with $BYND, it is a very volatile stock but I don't see any certainty in it. But now if you ask me for a stock like $CCI which is about 0.5% down today, if I believe that the stock will gain 1% in less than a week. I am pretty confident of that. There is of course, always the risk that things will go wrong and that's why even if you're try any type of short term trades(including arbitrage and options), make sure that this is not the bulk of your portfolio.

Watch the full video on YouTube and Subscribe for one new video every day: https://www.youtube.com/watch?v=AkzzEIvjJgw&list=UUPO3uUyoXSaFWG-Ldq1mqEQ

Join my private investing group on Facebook for more: https://facebook.com/groups/IshfaaqInvesting/

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