How is it possible to take $100,000 and turn it into $250,000 in 3 months by investing in stocks?

Question

In Mad Money's Cramer book, there was a section about a challenge they had. There was a challenge to see who is the best investor, by taking $100,000 of imaginary money and invest it in the stock market.

The winner turned out to be someone who was able to take that $100,000 and turn it into $250,000. That is a 150% increase!!! How is that possible when I read for a company... 20% increase a year is considered good?

The challenge was held from October to December - only 3 months!!!

How is that possible?

Answer 1

Is it possible? Absolutely!!! Is it practical? Absolutely NOT!!! The stock market has had an average anual return of 10% per year since 1925. To think that the average person will be able to beat the market average year in and year out, nontheless return 250% in less than a year --- absolutely not practical. Even Jim Crammer himself woudl tell you that returns on that magnitude is not practical and should not be accepted as normal. Reasonable investors should accept returns of 5-15% as being normal expectations.

Answer 2

First of all, if you get enough people to randomly choose shares on the market, at least some of them are going to double their money just by pure luck.

The best stocks for doubling + your money are the junior mining companies. Unfortunately, there is a bigger risk of losing most of your money. But like I said, if you have enough people willing to risk money that isn't real, one of them is going to hit the jackpot.

Another big advantage to the game is that imaginary investing doesn't affect the value of a stock. In a junior company, if you actually try and buy 100k worth of shares, you will affect the price by quite a bit. As you get more and more of it, the price goes up because you're creating a real demand. Then the opposite is true when you try and sell your shares-- the price plunges as you aren't able to find buyers.

In real life, the best way to make money is by subscribing to a private placement in a junior venture (mining/oil) company. They normally give a share at the current price PLUS a free option or a half option for shares at a fixed price in the future. There are also some tax incentives when buying venture shares.

But unless you know the market, and the resumes of the people managing the business, you should be happy with 20% return in a year.

Answer 3

A lot of luck. It can be done but the chances are you will loose money if you go in that path Long term in good stocks is the best way to invest. Mutual funds is the best long term investments.

Answer 4

Whether you have $100,000 or just $100 I would point you towards ProsperFiveStar.com. They have an investment vehicle that will return about 20% on average and up to 29% depending on your risk tolerance. Prosper is an unsecured lender which then sells its promissory notes to individuals who bid on their loans. They start as little as $50 and up to $25000 per loan. With the types of returns you're looking for Prosper is the way to go. Ford Motor Company also sells these types loans through their finance division.

Answer 5

There are many similar competitions like that (for example: http://www.robbinstrading.com/worldcup/) but their practical value is almost 0.

There are short-term cycles in every market which you can exploit to some extend but to achieve such results you need to risk almost everything what you gain, which under normal circumstances is the best way to failure in long term run.

Answer 6

The fogs in that site say that they have an answer for you but you have to pay for the knowledge http://sratim.smgenie.hop.clickbank.net/

Answer 7

Must have some control in the company or insider knowledge.

Answer 8

insider trading

Answer 9

I'll tell you if you pay me $150,000.