0Can I become a millionaire if I invest in the stock market?
Yep.
You can also lose you house if you’re not careful.
An example of what you could lose through carelessness
Becoming a millionaire from the stock market requires a dedication that most are not willing to commit to.
Here are some things to consider:
- Most people who involve themselves in the stock market lose money
- If your starting capital is $50,000 and you make 20% a year, it will take 16 years to get it to £1 million.
- If your starting capital is $100,000 at 20% a year it will take you 12 years.
- The long term average rate of return for a UK pension is about 7%
- You will sometimes lose money on your investments.
- If you have not formulated, tested, written down and can explain to a child your investing strategy, you are gambling.
It is the last two points that prevent individual investors from stock market success. Either because they cannot bear to see the value of their shares go down for extended periods of time or they have not properly researched their investing strategy.
