HOW TO BECOME A MILLIONAIRE TRADING STOCK OPTIONS
Many folks wonder How to become a millionaire or How to become a billionaire – however, for most this is more of a wish than an achievable goal. Since they don’t know how to become a millionaire, they buy lottery tickets in the hope that Lady Luck will smile on them and make them a millionaire. Unfortunately, the chance that one will become a millionaire by winning a lottery ticket is very, very tiny – something in the order of 1 chance in a few million – this is in fact stated by the Lotto agency in their disclosure (the tiny print). A more practical way for the average person to become rich, and even become a millionaire is to take matters in their own hands and do so themselves. They must take the trouble to learn how to become a millionaire! While there are many ways one can accumulate wealth and become a millionaire, most millionaires today are people who created their own wealth rather than having inherited it from their family. There are countless stories of Lotto winners who very quickly find themselves losing their millions within one or two years of winning the Lotto (the phrase ‘easy come, easy go’ comes to mind). The reason for this is that those who didn’t learn how to become a millionaire by earning their wealth don’t know how to invest it or how to save it, and so squander it away.
HOW TO BECOME A MILLIONAIRE TRADING AND INVESTING
Many folks have great wealth today, and those who wish to be millionaires would be wise to follow the ‘tried and true’ ways of making millions, and learn how to become a millionaire. There are two most common ways that folks can generate wealth are having a business of their own or investing and trading in the financial markets. On this website, I discuss how to become a millionaire by investing in the stock market and options trading. Although, those who are successful in investing and trading should seriously consider setting themselves up as a business, so that they can get the multiple tax benefits that business enjoy which common folks do not. One of the best ways to succeed at investing and trading is to find a role model to follow. Find someone who has achieved the goals that you want to achieve, and follow the path that they followed – an even better way is to seek out a mentor who can guide you along the way. Having a personal coach to teach one how to become a millionaire is one of the surest ways newbie investors and traders can enhance their likelihood of becoming successful themselves and becoming millionaires. One of the best known and most successful investors today is Warren Buffett, but he too started small. He began learning about investing as a child and bought his first shares at 11 years of age! Like many American teenagers, he ventured into ‘business’ with a paper route; later, while in high school, he and one of his friends bought a used pinball machine, which they placed in a barber’s shop, and were making money within 3 months. Over the years, his investing knowledge and prowess grew, and today he is reputed to be one of the wealthiest men in the world. Warren Buffett’s story is a source of inspiration for all of us, and illustrates a couple of principles noted elsewhere on this website – i. the power of compounding (this applies both to money and knowledge) and ii. the power of collaboration (see How to Learn Investing and Trading).
NEXT STEPS – HOW TO BECOME A MILLIONAIRE
For those who are newcomers to investing and trading and are not convinced that it is possible to learn how to become a millionaire, I recommend you read Become Rich using the Power of Compounding – this essay describes how you can learn how to become a millionaire investing as little as $10 a week. If you are ready to start your journey and learn how to become a millionaire, visit How to Learn Investing and Trading.
For those who are already trading, I have one practical tip – this one again attributed to Warren Buffet. Warren Buffett is quoted to have said that there are only two rules to making money – i. Never lose money, and ii. Never forget Rule number 1.
One of the commonest ways all options traders lose money is in the bid-ask spread (see Why Liquidity is Important), so it stands to reason that if one only trades options with tight bid-ask spreads, one will lose less money. Importantly, companies of stock option chains with the tightest bid-ask spreads are also the ones that are sought out by most investors and traders because they are in the news and have the potential to make a lot of money. The table below has examples of options of stocks and ETFs with over 30 days to expiration yet have bid-ask spreads of 3 cents or less. 
- Options with Penny Bid-Ask Spreads
Remember – it does not matter how much money you have right now, if you commit yourself to becoming a millionaire – you can! Warren Buffet started with 3 shares at the age of 11 years. The most important step is to get started – if you complete the three simple steps in How to Learn Investing and Trading, and you will set yourself on the path to financial freedom – to become a millionaire!
Happy Trading!
