How to Make a Million Dollars With $500 Bucks

1. The first step to a million dollars is to open up an online trading account. There are plenty of services online such as Scottrade, E*trade, Sharebuilder or Ameritrade. Each one is equally effective and great for starting your own trading account.

2. After you open an account, deposit money into it. $500 is the minimum you will need to make a million dollars in 5 years. If you cant invest $500, put as much as you can into the account. If you can invest more than $500, Great! This means you will reach a million much much sooner.

3. How will you make a million dollars in 5 years?
Simple, earn 3% on your money every week.
If you continue to do this for the next 5 years, you will earn exactly $1,025,590.
3% a week!!!! are you out of your mind! How am I going to do that?
It's not that hard once you break it down. 3% divided by 5 days is .6% a day.
You need to earn about a half percent a day five days a week.
This I assure you, is not difficult.

 

4. Buy and sell stocks. Remember, you need to earn .6% everyday on the trades you make.VERY IMPORTANT, Your goal is NOT!!! to find a stock that you think will increase .6% everyday. This will never happen ever.Stocks move up and down all the time throughout the day. Your only goal is to capture only .6% of that move.Example, when the market opens at 9:30am, a stock drops down 1% from $100 to $99 dollars. Immediately you buy it.By the end of the day, the stock closes at $99.50. You sell it.Even though the stock was down overall, (it started at $100 and ended at $99.50), you made .50 cents or .5% because you bought it at $99.The point here is that you only have to capture .6% of a stocks move. When it comes to stocks, the smaller the move the easier it is to make a profit. Doing this will guarantee that you earn a million dollars in 5 years.

 

5. Reinvest all your earnings! This is the only way you will make your million dollars.The compounding effect of money is unparalleled to anything else. Albert Einstein once said that the most powerful force in the universe is the power of compound interest.Reinvesting all your earnings everyday will guarantee that you make a million dollars in 5 years.