Hello everyone,
Most people are woefully under-educated as to finance. This is a simple equation I'm presenting that should be taught to every mid-schooler, or secondary school student. Have you ever wondered "How much stock do I need to become a millionaire?" Why does no one ever teach this? The equation is simple.
One million (US dollars) divided by the number of stock or coin
Or, as a table:
1 $1,000,000
5 $200,000
10 $100,000
100 $10,000
200 $5,000
500 $2,000
1,000 $1,000
5,000 $200
10,000 $100
20,000 $50
50,000 $20
100,000 $10
500,000 $2.00
1,000,000 $1.00
This can be applied to shares of stock, bonds, Bitcoin, altcoins. You need lots and lots of anything to make it where just a small move increasing in price makes a large move in your profit. This is why financial people are looking for penny stocks, or crypto currency under a dollar, worth less than a penny, because the potential return is so great.
If you can find a stock or crypto currency trading at $0.000085 USD, for instance, and buy 100,000 coins for only $8.50 USD, and then wait weeks or months or even years to have the stock or coin worth $1.00, you just made $100,000.00 USD. This is why early adopters are the ones making money in new fields. This is why a 2% move upwards in a stock price or altcoin nets hundreds of thousands of dollars profit for the investor. This is also why, when the common investor buys the same stock or coin at $100.00 USD, but only 5 shares, they may double their investment at $200 and make $1,000 USD, but this cannot compare to the early investor's profit returns.
This simple math needs to be taught to every child, every potential investor. You cannot do your due diligence on a stock, bond, coin, etc and only buy 200 shares of a company's stock or crypto currency at $5.00 USD or $100.00 USD and expect to make enormous amounts of profit when the stock doubles or triples. Two hundred shares has to go to $5,000.00 a share for you to make a million dollars. Does the stock or coin have that kind of potential? How many $5,000.00/share stocks exist in your marketplace? How many $5,000.00 coins? This is reality.
This strategy also applies to pump-and-dump schemes, because the scammer isn't looking to make the stock or coin go from $0.0059 to $1.00, they're looking for their hundreds of thousands of shares/coins to just go up to a few pennies, and then they cash out and move on to the next pump-and-dump. Meanwhile the victims who bought in at $0.13 or greater see the coin or stock fall back below a cent's worth.
I am not a financial planner, so do your own research and due dilligence before buying or selling any security or currency. But having invested for years before my own brain came up with the above table shows the inadequacy of our educational system.
(Picture found on the Internet and used without permission.)