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Now most people when they start off with investing in the stock market myself included they have this idea that they’re going to become the next most successful day trader or swing trader and they’re gonna take $1,000 and they’re gonna turn it into a million dollars in a very short period of time and i hate to burst your bubble here guys but i want to show you
Something called the 9090 90 rule to give you a realistic idea about getting rich in the stock market now myself included when i got started with investing i was dabbling around with swing trading and this was my goal i had $500 that i started out with in my account and i wanted to turn that into a million dollars buy swing trading and making you know 20 30 40
Percent returns day after day that was the idea that i had in my head and i want to show you guys why that is in most cases just not a realistic goal to have in mind when it comes to the stock market you can absolutely become a rich with this investment vehicle but it’s not in the way that you are probably thinking so right off the bat let’s cover the 90 90 90 rule
And the 90 90 90 rule essentially tells us that this it tells us that ninety percent of traders out there lose 90 percent of the money in their account in the first 90 days so essentially from that we can derive that about 10 percent of traders are successful or at least don’t lose money and the other 90 percent of people basically blow up their account they’ll go
From $1,000 to having $100 left or if they invested $10,000 they would lose 90 percent and be stuck with just $1,000 from that original investment and there are a number of reasons why this is the number one reason that i can tell you having talked to some successful traders out there like ricky gutierrez or jason graystone i’ve met both of these people and they
Are successful traders but the number one problem is that people cannot detach their emotions when it comes to their money they get greedy they’re looking for excessive returns they’re trying to become a millionaire overnight they’re not locking in profits so for these reasons specifically people tend to be big be unsuccessful when it comes to trading the figure
I’ve always heard is that about 1% of traders are predictably profitable so if you’re in a room full of a hundred people 90 of them are going to lose 90 percent of their money in the first 90 days the other nine or so people are going to pretty much not lose any money but not make much money either and one out of those 100 is going to be predictably profitable
So i honestly have nothing against trading it works for some people it doesn’t work for most people so we’re gonna take this out of the equation here and say okay you’re not going to use trading as a means to get rich with the stock market so how i invest is this way let’s say for example i had $1,000 in front of me and i was looking to invest that money this
Is exactly how i’ve done it and how i’ve been successful with investing and it’s not by taking that $1,000 and investing it in the uber ipo or finding some random penny stock out there that’s gonna go to the moon how i’ve been successful with investing is by taking that small amount of money that $1,000 and investing it into myself or more specifically into my
Business and i want to plant the seed in your mind here if you are somebody sitting there with $1,000 in front of you and you’re looking to invest that and you’re trying to become rich well why is it that you only have $1,000 because that in and of itself should identify what the main problem is here people are often chasing unrealistic high returns in the stock
Market through trading because of this right here they don’t have enough capital to get started with and the reason behind that is because they’re not making enough money in the first place so if you only have $1000 in front of you to invest i would not go out there and put that into the market i would put it into yourself in the form of self-education books or
I would put it into your business or wherever you’re going to be getting the highest roi so personally that is exactly how i invest earlier on you know i did have money to invest and i was messing around with some swing trading in the stock market but ultimately i took that money invested it in myself education through books and other means online invested money
Into equipment to start my online business here and that right there is how i have the best return on investment so it has been about two and a half years that i’ve been running this online business and let’s just say for numbers sake that i’m now able to have you know about $10,000 per month of money that i could do something with this is money that after paying
My bills paying my expenses i’ve got $10,000 per month left over that i have to do something with that right there is the money that i would then put into the stock market after you have taken that money and invested it in yourself and then you have this extra money here and you have nowhere else to invest it to scale your business and you don’t have any way to
Invest that in yourself to make more money that is the money that you then take and you put into the market so that is the truth about investing in the stock market a lot of people think it’s going to be the solution for them for all their problems they’re going to become a successful day trader they’re gonna become a millionaire trading stocks starting off with
A very small amount of money and the problem here is not low returns because the stock market returns around 8 to 10 percent per year and a lot of people think that’s useless and you know what if you’re investing a thousand dollars it kind of is useless because 80 to 100 dollars in a year is not a lot of money but the problem is not a low return the problem is not
Enough skin in the game not enough money to begin investing and you’re essentially trying to skip this piece here and go right to the stock market that is why you do not have enough capital so let’s say for example i took that $10,000 per month and i funneled it all into the stock market well after a year i would have about $120,000 invested so that $120,000 if i
Were to earn a 10% return that year would be a return of $12,000 now that $12,000 to most people including myself is a significant amount of money and in that aspect a 10% return per year seems extraordinary but when you’re investing such a small amount of money that 10% return is just not going to get you anywhere and i have to say in most cases if you’ve got $1,000
Sitting there and that’s all you have to invest i would not put it into the market i would put it into your own skills and figuring out how to build a scalable business or how to make more money that way you can have more skin in the game anyways guys that is the truth about the stock market and getting rich with stocks let me know what you think in the comment
Section below you know if you have a thousand dollars in front of you where are you investing it are you investing it into yourself or are you trying to invest it in something outside of yourself looking for you know some kind of great return if you guys enjoyed this video make sure you drop a like and subscribe to be notified of any future uploads and i will see you in the next video
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The TRUTH About Getting Rich Quick In The Stock Market By Ryan Scribner