How to become a stock market millionaire (from a billionaire)
Posted by Pierre de la Fortune on December 31, 2015 @ 12:01 a.m.
Written by X Make Money Staff
Follow the herd; The most important step in your goal of becoming a stock market millionaire is to follow the crowd. The stock is surely bound to increase because if everyone is purchasing or trying to buy it, the price should obviously go up. It is the very basic law of economics; when demand goes up, the price also goes up. Ask everyone around you which scrip they are buying for the day. If the scrip is hot and everyone including the analyst in the morning news slot and the elderly man next door talks about it, there should be surely something very special about the particular company. It is probably a multi-bagger or has got some new business contract with some Oil baron. Don’t even wait for the “Limit order”; place a “market order”.
Tips hot Tips; Why should one spend valuable time in market research and leaning all that stuff like PE ratio, EPS and other abbrevations that don’t register in the mind. All these are for the market analysts. Why not pay some money to some company which is offering to send tips everyday either by SMS or email or instant message. All that one needs to do is to shell out some money every month for the Stock Tips service and then get BTST (buy today sell tomorrow), weekly or short term tips. One can earn anywhere from 2% to 20% based on how good the tip is. Even if the stock is above to be frozen in the upper limit, go ahead and buy it because it is a “buy call”. It would probably hit the upper circuit for the next two days. And if you overheard a conversation in a coffee shop about a man telling another man about a stock tip that he heard from his cousin in a party who is the friend of a big-bull’s assistant, go ahead and immediately place a buy order. After all big-bulls can never be wrong!
Follow famous analysts and market researchers; It is the duty of market researchers to enlighten the public with their buy, sell or hold calls. They are the ones who you see sitting with newsreaders before the 9am opening bell talking about the stock market, giving predictions, talking about the economy, gdp and making projections. They are the ones that people usually love to call gurus. Market analysts can never be wrong; as soon as they make a call, go ahead and place a buy order (or sell order depending on the call).
Do intra-day trading. Long term investment is for idiots; When one can earn in a single day of trading, why invest your hard earned money for the long term? Find out the hottest stocks for the day, place a couple of random orders. Out of the 10 orders that you place, three might fail but 7 might gain; as simple as that!
Short-sell; Place bulk short-sell orders just before the end of market hours. Don’t worry about the terminal hanging or your computer shutting down a minute before the closing time. Short sells are usually effective in the listing day of the stock when there are no circuit breakers or upper limit.
Penny stocks; Buy a lot of penny stocks. They are very cheap; if you invest in 100 different penny stocks and even 5 of them become small-caps or mid-caps, one can make a lot of money. You even stand a chance of becoming a majority shareholder one day and even own the company.
Sell like crazy when others are also doing the same. The news reports say that the world economy is collapsing and the industrial output is decreasing. Sell all stocks that you have like there is no tomorrow. The market is on fire!
Stock went down? Average it in small lots; You bought a stock based on the milkman’s tip last week and unfortunately the stock price went down a bit this week. Why worry? The law of averages would take care! Buy the same stock again in small lots everytime it goes down. This way the current price will be as close to the average price that you purchased.
The bulls are running amock; The market is rising like it will cross mount Everest in a few days. It is in it’s all time high. The bull run has started! The market can only go in one direction now and that is up. Newton was a fool. Even your grandmother rang you up the other day and told that she is going to enter the stock market. Invest everything that you have and even take loans or use your credit card to buy more stocks. You can eventually recover all the investment in a week or so!
Stock price is cheap; Last month the stock was 100 bucks but this month it is only 25 bucks. It is looking very cheap now and the PE ratio is only 150. You can’t get anything cheap than this; it will go back to it’s original price very soon.
Some big-bull became a promoter; You found some block deals for a particular share and also came to know that a big-bull has become a promoter. No doubt this one is going to become a multi-bagger and will be in the news. Why not make this clever purchase?
Buy like crazy on the listing day; Stocks will surely go high on the listing day after the IPO; buy as much as you can within the first few minutes of the market opening on the listing day. Wait for a few hours or hold for a few days and sell it for a bulk profit. After all it is a commonly known fact that the stock price shoots up above the IPO price on the opening day. Simple, isn’t it?
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