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Tuesday, July 10, 2012

How to Make a Million Dollars Trading One Stock

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www.profitabletradingtips.com - How to make a million dollars trading one stock! This is a great idea if you can do it. Evaluating how this could be done is a good exercise in various methods of trading. How to make a million dollars trading one stock could be relatively easy if one had one hundred million to invest and only needed to make a little over one percent return on investment with your trade in order to keep the million dollars after fees and commissions. For most of us in the real world how to make a million dollars trading one stock will have to start with a substantially smaller investment pool, stocks with significant room for appreciation, and finding ways to leverage our investment. Many learn how to trade penny stocks with this sort of goal in mind. Options trading also comes to mind as trading options allows one to profit in both up and down markets. Options trading leverage works in favor of the options trader in that one can purchase out of the money calls on a stock with a distant expiration date. If the trader does his homework he may be able to spot a stock with substantially more upside potential than the market realizes. How to make a million dollars trading one stock in this case is to purchase options on a sufficient number of shares with enough capital so that the gain in share price times the number of shares in the options contract will exceed a million dollars by enough to pay for the premium, fees, and commissions. Thirty thousand invested ...
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