Is there an ETF for an index of the world's 1000 biggest companies by $ value, rebalanced every quarter? That asset would be the one most likely to be in a bull market over any 50 year period. The Dow did pretty well from 1950 to 2000, but America's future is uncertain. By using a fully global index you are constantly filtering in economies that are doing well and filtering out the has beens. Then, to become a billionaire, you put as much money as you can into this ETF and compound like crazy over several decades. Live like a monk - ALL spare cash goes into this fund!! Several decades? Do you have the patience? No, I didn't think so..
So many Americans are obsessed with the word 'billioniare' but most who aren't don't realise what a shitty life it must be. EVERYONE that knocks on your door probably wants something. EVERYONE trying to ripp you off. SECURITY issues for you and your family. TOO MUCH MONEY, why does anyone need so much, what are you going to do, buy 101 cars, 10 houses and 2 boats, and you think that will make you happy? FRIENDS. Mmmm, unless you grew up with them chances are you won't have many, if any at all. And the ones you do have probably only like you for the cash and what you bring to the party. PARANOID about losing your cash and probably slightly depressed as well when you look back at how good your life was when you had hope and dreams.......... So what's the solution? Don't get seduced by the crappy media who portray billionaires and the lifestyle as something to aim for. How about earning 'just' $10mill and having a far better life...........
Being a billionaire is not on my list of goals. Not realistic, virtually no chance of doing it (how many billionaires are there in the world atm? 2000 tops). The risks that one would need to take would outweigh the reward. If you really have unbelievable talent, then maybe. But otherwise, forget it. You don't need to become a billionaire (hell, you don't even need to become a millionaire) to have a great life.
Do you know any billionaires. Not all of them are Donald Trump. If you google many of them you will get zero returns. They have friends, they aren't paranoid, and they don't define themselves by their wealth. Many don't buy supercars, yachts, jets, etc. They just do their jobs (at their own their businesses) and hangout with the families and friends. They live not that different from you or me. That kind of wealth doesn't have to cause unhappiness if one is grounded and has a good family life (which is where most happiness is derived from).
Most of the traders that got very rich did so by trading either other peoples money and taking a cut or where able to borrow larger amounts from the banks to trade/invest in the markets. For a retail it's hard to borrow larger amounts of money in-blanco that is needed to scale up. For example the most that a average person in my country is can borrow without any collateral is $52,500. The bank refuses to lend you more. To scale up your trading you have to be able to borrow +1 million USD. Paul Tudor Jones and Steve A. Cohen got rich trading OPM, not their own money.
They got rich of the following formula: start with OPM. Generate 20% returns. Take equivalent of 6% of the assets as fees. Repeat. Repeat. Repeat. Repeat. After 10 years you have like 60% of the AUM (less your overhead expenses and taxes) as your own money. It's the OPM * compounding that made them rich.
================== Mr Ed; good question. Long story short; 40%[ is possible] for 1 month, but not easy, nor frankly common. But here is why, math wise- get rich quick seldom works; 4 percent per month, 48% a year can be done -but seldom is long term. Also trading is not about predictions; possibilities can be a key.................................... Wisdom is profitable to direct. You may find a rule of 72 useful; work 12 hours a day, 6 days a week=72 hours a week/+. Do that for 7.2 years.