By Jeff Margenau
Published: Tuesday, July 8, 2003
Making big money in the stock market is simple and easy and requires no intelligence whatsoever. In fact, you can't lose. All you need is a several million dollars to begin with. And the beauty is it doesn't matter if the stock market is going up or down. There are two methods - one for when you are already in the stock market, and one for when you are not. Here's how they work.
Not in the stock market
Simply invest your money in some semi-respectable company. To make the point, pretend the price is $10 per share. When other small investors (those with less than several million to invest) see the price of the stock go up substantially they will assume that something really good is happening with that company and begin to purchase the stock as well. Meanwhile, as you watch the small investors to come into the market, the price steadily goes up. Once you think you have waited long enough and the price of the stock has risen sufficiently ($20/share), you take your several million dollars out of the company. Since you are selling at twice the price you bought the stock at, you will double your money.
Already in the stock market
If you already have several million invested in a particular company - simply take all the money out at once. To make the point, pretend you sold at $20/share. Small investors (those with less than several million to divest) will see the stock price fall and will start selling their shares. Once you have waited long enough and the stock price has fallen sufficiently ($10/share), you simply take your several million dollars that you divested at $20/share and buy the same stock back again at $10/share. The net effect - you doubled your net worth.