Top Tips to Big Stock Market Returns
Are you tired of losing money or perhaps only making 5% to 10% a year in the stock market? I know I was. I was so desperate I even paid one of those expensive financial advisors to show me how to retire wealthy.
My financial advisor talked about compounding my money ANNUALLY in order to grow my money. He spoke of the “Rule of 72”, which tells you how many YEARS it will take you to double your money. He spoke of accounting for my profits ANNUALLY and paying taxes. He also told me what the average ANNUAL return on the stock market has been historically. His plan required forty years of investing. I just knew there had to be a better way.
After leaving his office, something just went off in my head. It was then I discovered the secret that I use today to make big returns in the stock market.
I finally figured that what my financial advisor was doing was brainwashing me. He was probably brainwashed himself and didn’t know any better. Chances are you have been brainwashed too and still haven’t figured out the secret.
What I had to do was to overcome my thinking and think outside the box. What if I did everything monthly instead of yearly? There was the secret. Using compounding on a monthly basis instead of yearly I could take a 10% return and double my money in 7.2 months instead of 7.2 years!
Now you are probably thinking it sounds great but making 10% monthly is hard. Not true. Just use a stock screener on any given day and list all stocks that have risen 10% or more in one day. I’m sure you’ll find quite a lot. I like to look at stocks that have a price of $2 or more. This eliminates all the penny stocks and you end up with a much more manageable list.
The next step is to try and see what all these stock have in common. What Industry are they in? Are they making profits? Are they small caps or big caps? After pinpointing the common denominators you should now know where the money is flowing. That is where you want to be. Look for stocks that have liquidity (trades an average of 100,000 or more shares per day) and may currently be beaten down in price. If you get in on these before the big money gets there, you will be in a position to ride the stock up as the buyers step in.