What is your weekly profit target when trading on IQ Option? If you don’t have one, you should. Why? Having a weekly target has a positive psychological effect. You’ll enter into trades that you believe will bring you a step closer to this target. In addition, reaching this target means you can stop trading that week.
Now, did you know that making 20% weekly profit on IQ Option can turn you into a millionaire with an initial balance of $1000? And that’s within 1 year. This guide shows you how.
- 1 How to turn $1000 into over $1 million within a year trading on IQ Option
- 2 Comparing this strategy with Warren Buffet, the wealthiest investor of our time
- 184.108.40.206.1 One important lesson we learn from Warren Buffet is that using compounding and a relatively low percentage return, you can grow a small amount into millions or billions over time. But this doesn’t just magically happen especially when trading. One more lesson Warren Buffet teaches is to not lose the money you have. This is impossible when you’re trading on the IQ Option platform.
- 220.127.116.11.2 However, you’re ultimate goal is to make 20% of your opening account balance each week. So even though you do make some losses during the week, you should make sure that you’re closing account balance is 20% more than your opening balance.
- 2.1 Trading vs investing
- 2.2 How I managed to make millions trading on IQ Option
How to turn $1000 into over $1 million within a year trading on IQ Option
Every year has 52 weeks. When you subtract the non trading days, you should have around 50 weeks to trade. Using the concept of compounding and a weekly return of 20%, you can easily turn $1000 into over $1 million within 1 year.
Consider you initial balance of $1000 and the 20% weekly target ($200). That means you have 5 days to make $200 from the initial account balance. So at the beginning of week 2, your account balance should be $1200.
How to use compounding. Compounding simply involves reinvesting your profits back into your capital. So using your $1200 your goal should be making 20% of this amount ($240). Repeat this for 50 weeks and you’re sure to be a millionaire at the end of the year.
Comparing this strategy with Warren Buffet, the wealthiest investor of our time
If I were to ask you to name 5 wealthy traders, Warren Buffet will likely feature in your list. With a networth of around $82 billion, he’s one of the wealthiest men on the planet. But what’s more interesting is how he’s created his wealth. He actually started with $5000 at fourteen. Over 70 years later, this amount has grown to over $82 billion. If you consider this growth, you’ll see that he has a modest annual return of 25% to 26%.
This is higher than the 20% weekly return you can make on IQ Option and become a millionaire within 1 year.
Looking at the chart above, it’s clear that with 20% weekly returns and using compounding, becoming a millionaire in 1 year is possible.
One important lesson we learn from Warren Buffet is that using compounding and a relatively low percentage return, you can grow a small amount into millions or billions over time. But this doesn’t just magically happen especially when trading. One more lesson Warren Buffet teaches is to not lose the money you have. This is impossible when you’re trading on the IQ Option platform.
However, you’re ultimate goal is to make 20% of your opening account balance each week. So even though you do make some losses during the week, you should make sure that you’re closing account balance is 20% more than your opening balance.
Losses will always be part of trading. But using Mr. Buffet’s advise, we can simply put it this way. Never lose a single dollar of your account balance.
That is, your week should always close with your account balance bigger than it was at the beginning of the week. So you won’t need to strictly attempt to make 20% per week.
There will be weeks when your return is 2%. On others, you might find that the return is over 70%. Consistently making profits is the key to becoming a millionaire.
Trading vs investing
Warren Buffet created his wealth primarily as an investor. Trading is a completely different way to make money. Here you’re dealing with probability.
Unlike traditional buy and hold strategies which only make money if a stock’s value rises, trading options can make you money whether the prices go up or down. This means you can grow your wealth much faster as a digital options trader than if you are an investor.
One great thing about trading is that there is no specific trading strategy. You’ll come across dozens of strategies throughout your trading career. How you apply these strategies is what counts most if it’s going to make you money.
How I managed to make millions trading on IQ Option
Initially, I was a forex trader. I got caught up in the crypto craze and made good money trading cryptocurrencies. However, the crypto bubble was bound to burst so I got out. Today, I exclusively trade digital options. Each of the markets I’ve participated in has made me money. So I cannot say one market or strategy is better than the other.
The cryptocurrency bubble burst of 2017 makes a good case against the buy and hold investing strategy. Bitcoin‘s value had risen to over $20000 over several months. Today, the value is under $4000. Consider investors who bought Bitcoin when valued at $10000 and still hold BTC hoping its value will rise again.
On the other hand, consider a cryptocurrency options trader. He doesn’t own any coins. However, he is constantly making money trading on specific coin’s price fluctuations. Whether crypto value rises or drops, the options trader will make money.
More about cryptocurrencies
Cryptos dropping in value gives you some way of getting at least a fraction of your initial investment. But consider cryptos which collapsed entirely.
Traders who invested in Ifan and Pincoin lost their entire investment when these cryptos collapsed. Regrettably, people are still trying to invest in new cryptocurrencies hoping they’ll perform the same way as BTC and ETH did. I don’t see how this will happen any time soon.
My advise is to open an IQ Option trading account, start trading targeting 20% returns every week. Using compounding, you’ll eventually find that you’ve become a millionaire in less than 1 year.
Do you believe that $1000 can be turned into over $1 million in under 1 year with just 20% weekly return? I’d like to hear your views below.
The best of luck!
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