Can each of us become a millionaire with minimal investment?

Anyone can become a millionaire with just a little 1,000 euros initial investment? Of course! This is what 2020 ultimately taught us, where certain stocks – such as Tesla – returned to 700 percent returns in a single year! So if you have invested 10,000 euros, you almost had them at the end of the year 70.000. But these are those dream scenarios, still far from the millions that are in the title of this record. In any case, the question arises how much we need to invest in the financial markets in order to have one day in our account 7 digit sum? And in what way should we invest? We will answer that question at the end of this write-up.

What should be the initial investment in "capital markets"?

An initial investment in the capital markets is not actually money that will make you profits, but rather money that you will most likely lose. You should see it as your ticket to a live learning opportunity. This money can also be called school fee or ticket. Among other things, this ticket is made possible by certain platforms, such as eTorro, which allows new users to trade on a "virtual" account that is identical to trading with real money. You get 100,000 virtual dollars at your disposal, which you can "check" or use as a basis for live learning. What we want to say is that the initial investment in the capital market is the one from which you will learn all the rules of the market over a period of time. As long as you will trade with your real money, you will of course experience real adrenaline and learn faster as a result. A few times faster. But you can take the game with virtual money as a real one and play against the "house" - that is, the stock market financial markets. As we repeat in the last few sentences, it is learning that you need to be aware of. Becoming a successful investor also means mastering the business with experiments, which are not always profitable. It is necessary to be aware that there are no winners in the investment business without learning from mistakes. Just like in everyday life, investing in knowledge and repeating the "exercise" produce results. Investing is easiest to imagine as a sport! It takes invested energy to acquire knowledge, information that yields future returns, and repeated practice and learning from mistakes. Don't expect to make a profit right away. Just like you can't expect to be able to run a marathon after a few training sessions. First of all, you should focus on knowledge and not on profit. Transferred therefore to sports language – correctly performed exercises. Knowledge is the real added value of your investment! You get into investing primarily in order to gain knowledge that will bring you profits and long-term financial independence in the future. So the first step is knowledge – not state of mind trading account. Without it, there will be no success and no profit. Without it, trading is pure lottery.

Why is investing not the same as gambling?

Are you a traditional investor or a day trader?

The essential question you need to ask yourself is whether you will do this on a daily basis or whether you will invest in securities and cryptocurrencies that you believe in for the long term. Long-term investments can be much smaller, because with your trading account you will not deal on a daily basis. You will lock the money in a "trading account". If your intention is to trade daily and do it "professionally", then for the time you will spend, you expect payment as compensation for your invested time. The bottom line is that classic investing in companies such as Apple, Google, Tesla can be done by anyone who has only one key piece of information or acquired knowledge: that the markets are historically always at record highs - i.e. always worth more, because the general productivity of the economy increases from year to year. a year older. This is their basic legality. So the markets are always and always growing. So, if you are a classic investor, all you have to do is "invest" money in industrial indices you believe in, that is, in your favorite companies and cryptocurrencies, and then forget about your investment for a while. Many financial advisors advise that it is even best to delete the trading app from your phone and only check it after a certain period. Namely, fluctuations in a trading account can be psychologically too exhausting for many people. Daily monitoring is stress you don't need in your life. Although markets are often in the red, they are always higher in the long term. If you decide to day trade, then the story is completely different. Then for day trading you need higher funds, which will allow you to perform day trading at a professional level, for a monthly fee. Then the investment in your business is very comparable to the investment in the business that you would otherwise do in the "physical", real world. It's just business and nothing else. So you invest your time and your money. Of course, as with any business, you need knowledge and understanding of the legalities of the industry. Also, if you open a hair salon or a car wash, you must therefore have knowledge that is not unique.

1,000 or 5,000 euros or more?

We have learned from the above paragraph that you will need to invest some time in investing to gain knowledge. This is the basis that you invest in addition to your real savings. Only those savings that you can absolutely give up and can afford to lose. The rules here are exactly the same as in any business. The more you invest, the more income you can expect from this title. Invest less, the returns will be lower. This is also why low initial stakes may not make the most sense. There is nothing wrong with them. However, you will simply spend too much time and energy for a profit of a few euros, but if you want to make a living by trading on a daily basis, 1,000 euros it will absolutely not be enough. There is nothing wrong with this amount, it is simply too small to know the real effects.

A deposit of 1,000 euros

Insert 1,000 euros it is a basic trading deposit, but it does not allow you to trade daily, or you can do so in an extremely limited way. Namely, profits from this kind of amount can often be smaller than the commissions you pay for transactions. With 1,000 euros, we advise you to divide it in half: invest half in two to three companies whose products you believe in and use every day, and the other half in cryptocurrencies. Then simply forget about this amount. This money is not traded. This money is invested and left in a "trading account" invested in what you believe has a future. Even 1,000 euros can make a million, and this is no rarity!

Example of Amazon's IPO in 1997

If you had invested $1,000 during Amazon's IPO in May 1997, your investment would have been worth as much as $1,341,000 as of August 31, 2018, according to CNBC calculations.

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The above example is empirical evidence that it is possible to make a million with an investment of 1,000 euros. You have to trust the vision of the company and of course give the money time to grow.

Deposit of 5,000 euros

Insert 5,000 euros is the investment that already enables daily trading and the creation of "ancillary income". Good day traders will make between 10 and 30 percent of added value monthly (some even absolutely more) from an initial investment of 5,000 euros. Of course, this depends on the amount of time and, of course, the amount of acquired knowledge, i.e. some good foundation. Investors - beginner day traders cannot expect such returns, unless they have an exceptional feeling for the market or talent. Of course, these percentages can be lower, but they can also be much higher during exceptional market events. For example, a big jump of one of the popular cryptocurrencies, where in one day you can also do 10 percent or several times more. With daily investment 3 to 4 hours therefore, you can expect monthly growth in your trading account 500 and 1,500 euros on a basis 5,000 euros. Of course, everything is only hypothetical, as long as your knowledge is compiled and the market conditions are relatively favorable.

Deposit 30,000+ euros

For day trading, which should become your main activity, a typical entry amount is around 30,000 euros, which, with a daily investment of 8 hours of your time, can already provide good income, comparable to an above-average or extremely high gross salary. This is your business, which is identical to the business in the real world. If you don't come to work, you simply won't have any income from the daily "exchange rate" differences of your portfolio. If you're lucky, your well-chosen portfolio will still grow even when you're away from your computer. Only the speed of this growth will be much lower than if you were to monitor exactly what is happening on the market and invest money or withdraw it correctly and thus profit at the expense of these "exchange rate fluctuations". At the amounts 30.000+ euros, you should be aware that you can lose a lot without knowledge. This is also why it is necessary to set a plan of action and rules that you must not violate under any circumstances. Violation of these rules almost always means a minus on the trading account. The basic awareness must be that this is a business like any other. If you do not work hard, acquire knowledge and do it holistically, there will be no success. Day trading cannot be just a hobby. You will spend too much time for the latter. As you know, time is always money.

5+ golden rules to start investing

Anyone can become a millionaire by investing. If you believe in the ideas of companies, are a fan of a brand that inspires you, don't wait. Invest in things you use every day and brands you believe in. If you are an "early adopter" and know how to recognize the right trends in the world of technology at the right moment, your contributions will definitely multiply. But most importantly - give time to money. This is also why you should always only invest what you can absolutely lose.

It doesn't matter the amount you invest. As you can see, even 1,000 euros can turn into a million. Knowledge and an open mind to the changing world are important.