Disclaimer: First of all, this is not a piece of financial advice. Whatever you do with your money is your call and your free willpower. I will not hold you accountable for your mistakes. All numbers and recommendations are just for illestrating the concepts and non are financial recommendations.
Note: You will not make $1M after reading this article. The point behind it is sharing concepts and awareness. This is not a guideline to go to $1M. Instead, it is a mindset.
You don’t need to understand any financial concepts to get to the answer. Some might say that it is possible to make that turn using 1 move instead of 10. That is true. I will share the concept of making anyone turn his $1,000 into a $1M in just 10 decisions.
“…financial success is not a hard science. It’s a soft skill, where how you behave is more important than what you know.” — Morgan Housel
There are no secrets behind financial success other than making the right decisions at the right times. To go there is another story.
The concept is doubling your numbers. What I like to call “Doubling.”So, starting with a $1,000 and making the right decision to get it to $2,000 and so on. It will look like this:
Move 1: $1,000 → $2,000
Move 2: $2,000 → $4,000
Move 3: $4,000 → $8,000
Move 4: $8,000 → $16,000
Move 5: $16,000 → $32,000
Move 6: $32,000 → $64,000
Move 7: $64,000 → $128,000
Move 8: $128,000 → $256,000
Move 9: $256,000 → $512,000
Move 10: $512,000 → $1,024,000
Starting with $1,000 is just an example. You can start with $1 and get $1,000. You can also apply this concept to anything in life. Let’s say you want to achieve 1,000 followers on Twitter. You have to work on moving your 1 follower to 2, then to 4, and so on.
Now to get to make 10 right decisions in a row is a huge risk. And the more you advance, the higher your risk becomes of losing the money. Now, this can be viewed as gambling, but this is not what I’m referring to — at all. What I’m trying to imply is money, when doubling, will become a lot. Making the right move in business and investment is the key to making that happen.
If you can put $1,000 on a stock — let’s say Cryptocurrency — you get the chance to have that stock doubling. When you reach that goal, you stop. I know you might get the chance to skip a step or two by quadrupling instead of doubling, but that is a higher risk.
“…accept that you might have enough, even if it’s less than those around you.” — Morgan Housel
When trading with Crypto, you can make high returns compared to regular stocks and other fiat currencies. Some people made that happen and doubled their money over time.
The beauty in doubling is that you are making twice as much, but the worst part is losing all the money in a single bad move. This is why using a stop loss is recommended.
You can buy a Crypto at $0.1 and have your selling point at $0.2, keep your stop loss at, say, $0.05. This way, you lose half of the money instead of losing it altogether. Of course, this is not recommended unless you know what you are doing. Day traders do this all the time. Sometimes they make a good profit, other times they lose.
“You have to give yourself room for error. You have to plan on your plan not going according to plan.” — Morgan Housel
Like chess, getting 10 right moves requires that you know the moves you are making. If you decided to go with trading crypto, one piece of advice is to study trading before attempting any of this. Understand the market and get yourself a year of practice and patience. You can make anything grow on trees these days; money is not one of them.
So what are the key take aways?
- Making money in investments can be rewarding and very risky, be cautious when applying any advice given to you.
- Making $1M is not as easy as taking 10 steps. It requires taking a risk and having the right decisions. The headline explain that it can be done in 10 steps, but getting the 10 decisions right in a row can be very difficult.
- Doubling money is not something that you should focus on when it comes to investments. This “10 step” method is to show you that in theory, it is possible, however in real life and stock market everything is possible and everything doesn’t go as expected. So be aware.
- Take the concept of compounding and apply it not to only double, but adding little bit of your monthly income to your investments can make a huge difference in 5, 10, 15 years from now.
- One thing that is missing here is that people want to know how to double. Although there is no way to make that happen and guaranteed. The methodology can be applied.
- Focusing on getting from 1000 to 1,000,000 is hard and can be disappointing. However, if you focus on going from 1000 to 2000, then from 2000 to 4000 is doable to some extent. This is the mindset that can be used if you have less money to work with.
Remember that life is more than just making more money than enjoying every second of it. Money can come and go, but your time will only go and won’t come back. If you have $100M or $100 in the bank you can live a happy life. It only depends on how you live it. There are a lot of miserable millionares and there are a lot of happy people with few dollars in the bank. Money is not the key to happiness, your mindset is.