So it kind of a math question - as much as an investment question. How fast and how quickly. Leverage would be everything so let's play with some numbers. Let's say our benchmark is trading at a 100 - we assume it's going to melt up 400 in the next six months. Take your $10,000 and buy 50 of the $200 strike trading at $2.00($200 in the U S Market) with an expiration just under the six month time frame. That spends your $10,000 x/commissions. Market melts up to 400 and your 50 options are worth $20,000 each for a value of a million dollars again x/commissions. You'd make 100X your original investment. Obviously all plug numbers and I'm confident someone will comment that a $1,000,000 probably won't buy a candy bar under these circumstances.
If you want to trade to make a million dollars, the most important thing to learn is that you will never know anything beyond doubt.
Right. And we all know you woke up and stared at the clouds and then studied blades of grass in your backyard to divine that move before it happened. You then went all in and bought puts on the S&P at 9:30 EST and held on to 3:59PM EST to make a huge "compounded" score. You are so fos dude. Never one trade posted live. Hell at least Soes tries.
I could only trade how I know will work and I'm familiar with. I'm in UK so I can spreadbet on the indices. I'd take the Nasdaq100 as its responsive to risk tolerance but lower risk than an individual stock. Go long at any price which is not a new high, with a capital risk of 5% of account. When profit reaches +5%, add a second trade with same risk but move stop on first trade to entry. Keep adding new trades and d moving stops higher by 5% each time gain increases by 5%. This will make a million soon enough but never takes a capital risk greater than 5%: though this is an interesting problem, I can't think of a scenario or strategy in which capital risk could be ignored.
Time. Except the market would be retail sales using Amazon, Ebay and Shopify as sales channels. And then you would find and build up to 20-50 items (preferrably within a micro niche) that sold several times daily each, and narrow this list of items to things you could find for wholesale on Alibaba, DHgate and Aliexpress to things that would net a minimum of $8 for each sale. Once pictures and descriptions are in place and the sales start coming in, a level of automation will begin. After a few months of reinvesting and growing you will begin looking for local manufacturers to modify these generic items to solve customer complaints and build your brand out. Once you get up to 500k to 1mm, sell it for it's going rate multiple. Meanwhile, kickback and put some trades on once the machine is running.
If you decent at chart reading, put 25% into closed end discounted junk bonds, many will say it is higher risk, but higher reward and I think depending on your knowledge, everything has equal risk. Coffee futures very low, so buying 25% there. Wait till Cotton bottoms and do 25% And deep OTM puts on SPX as far back you have decent volume 25%
Start with $1.000 and double it 9 times. You will be a millionaire. How. Go to Vegas and get red or black right 9 times. That's it. Or flip a coin. Coins are actually a little bit better. The great thing about options is that once the bet is made you can change//or pull out. Can't do that with Vegas. You only have to be right on 9 double options bets and you are a millionaire. There are millions of doubles with options. It is a lot easier than you might think but then again you have to be able to handle the Big Numbers. Big Numbers is where people have problems.