Become An Automatic Millionaire By Applying The Power Of Investing

Now, you may be thinking that a 12.08% annual return from the stock market may not sound very exciting. However, when allowed to compound over a period of time, it will turn small amount of capital into huge returns!

In fact, by utilizing the power of options trading you can easily make 100%-500% return on your invested capital at times (although I don't suggest you throw everything into this strategy). Using this strategy was precisely how my partner Conrad manages to make average of US$5,000- US$7,000 a month (his record is US$14,852.25 in January 2007) with less than US$5,000 in capital. That's a 100% return in a month.

Imagine if you were to earn an average of $36,000 a year ($3,000 a month) for your entire working life of thirty years. This is assuming you start working at age 25 after graduating from university and retire at age 55. The total income you would receive would be $1.08 million ($36,000 x 30 years). So the good news is that you would already be earning a million dollars in your lifetime, without any help from me.

The bad news is that if you are like most people, you would probably spend most of the money you earn and a whole lot more. You would end up at the end of thirty years with nothing much left. What if you were to just invest 10% of that income a month (i.e. $300) into the US stock market Index and allowed it to compound annually at 12.08%, how much would it grow to? Using a financial calculator, you will find that $300 a month invested at 12.08% compounded annually will grow to $939,106! Isn't that amazing! Just by investing 10% of your income, you get back almost all of that $1 million which you earned in the first place. This is possible because of the amazing power that compound interest (returns) can have on small amounts of capital over a long period of time! And the best part is that it takes very little investment knowledge to do this. All you have to do is to invest consistently in the Index.

I know that some of you are probably thinking that you don't have thirty years to wait to make your first million. You probably want to achieve financial freedom within the next 10-15 years or less! The great news is that with some hard work and the savvy stock picking skills are available for you to learn and apply, you will confidently be able to achieve a minimum of 15%-25% compounded annual returns on your investment.