MAKE A MILLION DOLLAR PLAN
How to Make a Million Dollars Using Secret of
Compounding
Everyone wants to make a million dollars, but not too many
people have any idea of how to do it. It can hardly be done with a salary or wages paid to you for work. The
interesting thing about getting wealthy is that the less work you do, the more money you make! It must be done
through the magic of compounding interest or compounding profits! Compounding profits by trading may be easier than
compounding profits in the manner that Walmart stores do it. But to do it with trading stocks or futures and
especially day trading, you must have a market advantage and be able to regularly take the profits and regularly
and systematically increase the amount of your investment which you trading. But doing it the Walmart way involves
great amounts of money in which you must lease or acquire real estate, hire employees, purchase multimillion
dollars of inventory, advertise and hope that masses of people come to your store.
The margin day trading the S&P 500 mini ranges from
$500 to $6,000 depending on the broker you might use. This provides each dollar with greater leverage toward making
your million. If you have a $5,000 margin account and you make $5,000 over a month or so, you have made 100% per
month or 1200% per annum! In the second month if you traded two contracts you would make $10,000. In the third
month you could trade four contracts (your original $5,000 plus the profits from the first month of $5,000 and the
profits of $10,000 from the second month gives you $20,000 with which to trade.) This routine you would continue
until your long term profit objective of one million is accomplished.
This is powerful. Einstein said that
compounding interest was the world's greatest invention. Compounding profits in futures day trading can be
extremely faster than compounding bank interest!
Consider the following schedule of trades for which the
example below shows that $5,000 can be made monthly: ACCOUNT MARGIN $5,000.
For those readers which doubt that it can be done. It is
already a matter of record
THAT IT HAS ALREADY BE DONE! The legendary trader, Larry Williams, accomplished this and more in
1987 in a contest sponsored by Robbins Futures to see who could make the most money within one year starting with
only a $10,000 account. Larry Williams finished with a profit of $1,137,000! This was
audited by IRS and no one has ever been able to fault this extraordinary profit. At one point during that year in
October, he had actually made over two million dollars. He kept with his system in spite of the huge crash in
October and finished the year with $1,137,000! Okay, you say, I don't need that much money, I just need $68,000 per
year for a nice living in my retirement. If you trade two contracts and average $34,000 per year year, this would
provide the $68,000. You need $102,000 to pay your commitments and mortgage? Trade three contracts which provide
$34,000 per contract. There is no reason to be greedy.
ACCOUNT MARGIN $5,000.
PROFIT
CUM
ACCOUNT
1. 1
contract $5,000
$10,000
2. 2
contracts 10,000
20,000
3. 4
contracts 20,000
40,000
4. 8
contracts 40,000
80,000
5. 16
contracts 80,000
160,000
6. 32
contracts 160,000
320,000
7. 32
contracts 160,000
480,000
8. 32
contracts 160,000
640,000
9. 32
contracts 160,000
800,000
10. 32
contracts 160,000
960,000
11. 32
contracts 160,000
1,120,000
|