In the last article in this series on 40 different ways to make money online as a Nigerian, I introduced Timothy Sykes to you. He is the young American Jew who used his Bar Mitzvah gift money of $12,415 to trade penny stocks making over 1.5 Million US Dollars in the process. He did that in about three years from 1999 till 2001.
Starting from Timothy, I will show you how you can trade international stocks profitably anywhere you are in the world.
This is also why I love (online) trading. What many don't know is that it is very easy to do that once you are a skillful, disciplined trader. I will further recommend Tim to you and other international stock market gurus, but before that, let me quickly explain how you can also turn $10,000 into $1 Million before I go on, because I will still mention something like this too when we get to Forex trading.
Let's say you have $10,000, and you make roughly 5% weekly (i.e 1% daily). In exactly 1 month, you will have $12,000. In the following month, you will apply the principle of compound interest to $1200, such that instead of making $2000 (20% of $1000), this time, you will make $2,400 (i.e 20% of $1200). So, in roughly 4 months, you will have doubled your capital. That means you will double your starting balance every 4 months.
Furthermore, the table will look something like this:
Month
|
Starting Amount
|
5% weekly/20% monthly
profit
|
Final amount
|
1st
|
$10000
|
500/$2000
|
$12000
|
2nd
|
$12000
|
$600/$2400
|
$14400
|
3rd
|
$14400
|
$720/$2880
|
$17280
|
4th
|
$17280
|
$860/$3460
|
$20730
|
5th
|
$20730
|
$1040/$4160
|
$24890
|
6th
|
$24890
|
$1240/$4960
|
$29850
|
7th
|
$29850
|
$1492/$5970
|
$35820
|
8th
|
$35820
|
$1791/$7164
|
$42894
|
9th
|
$42894
|
$2149/$8597
|
$51491
|
10th
|
$51491
|
$2575/$10298
|
$61789
|
11th
|
$61789
|
$3089/$12358
|
$74147
|
12th (1st
year)
|
$74147
|
$3707/$14829
|
$88976
|
1st
|
$88976
|
$4449/$17795
|
$106,771
|
2nd
|
$106,771
|
$5339/$21354
|
$128,125
|
3rd
|
$128,125
|
$6406/$25625
|
$153,750
|
4th
|
$153,750
|
$7688/$30750
|
$184,500
|
5th
|
$184,500
|
$9225/$36900
|
$221,400
|
6th
|
$221,400
|
$11070/$44280
|
$265,680
|
7th
|
$265,680
|
$13284/$53136
|
$318,816
|
8th
|
$318,816
|
$15941/$63763
|
$382,579
|
9th
|
$382,579
|
$19129/$76515
|
$459,095
|
10th
|
$459,095
|
$22955/$91819
|
$550,914
|
11th
|
$550,914
|
$27546/$110,183
|
$661,097
|
12th (2nd
year)
|
$661,097
|
$33055/$132,219
|
$793,316
|
1st
|
$793,316
|
$39666/$158,663
|
$951,979
|
2nd
|
$951,979
|
$47599/$190,396
|
$1,142,375
|
So, with the power of compound interest, we reach our target (if we don't make any withdrawals at all) in exactly 2 years and 2 months. I took the pain to do the calculations so you will see it in black and white and believe that it is possible. [At least I am sure I can do this with Forex, the question is just 'Will I remain patient and disciplined to stay with my strategy for 2 years?!']
Please check up Tim Sykes, and you can join his millionaire challenge to see if you will be his 3rd student to turn $10,000 into $1 million trading penny stocks.
I saw this lovely infographic on stock market terminologies there to. You can also sign in to profit.ly -a site he co-founded and dedicated to giving financial resources to traders especially on penny stocks.
Peter Leeds of Penny Stocks Cash is also another expert in penny stocks.
Also, you can check out Gurufocus started by Charlie Tian, a Ph.D holder in Physics, an inventor and research scientist who stumbled into the investing world and started Gurufocus in 2004 after he lost money in the tech stocks crash of that period. He gives information to his premium members on European, South African, Canadian and US stocks (subscription is about $350 per year -not bad at all). And from the testimonials, he really is good.
I will continue in the next article on how you can open an international account to trade foreign stocks as a Nigerian. I will also share more tips on how you can be successful as a trader, giving you even more websites and communities you can follow in order to be a successful trader overall (regardless of what you trade).
Don't forget that up to 95% of traders lose more money than they make. So as a trader YOU MUST HAVE A MENTOR/GUIDE. I have traded for 8 years now, and if I have only one (1) advice to give any newbie, that is it! On a mentor's shoulders, you can see further and avoid his own mistakes (that is if you listen to him anyway). But I encourage you to get a mentor or role model (around you if you can find), and follow him perfectly until you can cut out your own mold.
Till tomorrow...Cheers!
Please don't forget to share these articles if you find them very informative and helpful. Your comments too are really appreciated. Thank you.
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