As the economy has improved over the last eight years, people can’t stop thinking about becoming a millionaire through the stock market. It’s the epitome of the American Dream. Every day, new and old investors are praying that their investments will tip the scales and lead them to riches.
But can you really make millions off the stock market? The short answer is yes. People have done it countless times before, and they continue to do it today. However, it’s not as glamorous or easy as people make it seem, nor is it as common as you might think. There are several factors that play into this debate.
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These experts want to shed some light on the concept, offering advice and encouragement to anyone who enters the market. Obviously, not everyone can make millions through investing, but by developing a few important traits and skills, investors can better their odds and profits.
Millions enter the market with just a basic understanding of how things work. Some get lucky and make a profit, but most see things crash due to a lack of knowledge. Building up expertise in a single category is the best way to find success in investing. Nobody is an expert on every aspect of the market, which is why Grerory Kurinec, CEA of Bentron Financial Group recommends investing only in areas where you have some level of expertise.
“Invest in what you know,” he advises. “Any investor, but especially beginner investors, need to do some homework before making their initial investments. Make sure you know what you’re investing in. If you’re investing in mutual funds, make sure you dig deeper than the fund title – it means nothing. If a beginning investor is going to invest in stocks, they need to do the homework on the companies they want to invest in. Any investor needs to be willing to put the time into their portfolio. If they aren’t willing to put in the time, they should seek professional advice.”
Relying on market savvy is a huge part of making it big. Without an understanding of volatility and the fluctuations of your target market, you’re more likely to see a bear market than a bull.
Ability to Cut Losses
Those who make their millions at market do so because they cut their losses quickly. As soon as they see a downturn, they remove their money before they can lose more. This advice comes straight from millionaire Tim Grittani who has made more than 2 million in four years of investing.
“I see far too many traders/investors refuse to cut losses,” he says. “They delude themselves into believing the stock will come back their way for fundamental reasons, or simply are too proud to admit they were wrong and take a loss. No matter what the reason, the end result is usually one bad trade taking them out of the game. You could be short a near worthless company (like some were with CYNK) and still blow up your account if you refuse to cut a loss quickly. The market is always right, you have to be humble and respect the market, or the market WILL humble you!”
This requires letting go of your ego and recognizing that the market is a wide beast with plenty of opportunities for growth. If you lose all your money because you were stubborn and didn’t pull out, then you’re in trouble. But if you pull out before taking a big hit and reinvest that money in another prospect, you have the chance to hit that million dollar mark.