Some investors are becoming instant millionaires amid the coronavirus outbreak. One fascinating tale is that of a trader turning a $35,000 retirement savings into a cool $1 million after performing 350 trades. The 3,500% gain took only a few months while COVID-19 was raging.
Unbelievable feat
No one knows if the storyteller that goes by the name “Mori226” was telling the truth. Independent verification of the exploit has yet to come out. Nonetheless, according to the mysterious trader (or traders), he cracked the seven-figure mark during the insane wild ride.
The trader supports the narrative on Reddit with several screenshots of the specific trades on the U.S. stock market. Based on the trade history and chart of the gains, the $35,000 portfolio grew to $1.25 million. The self-proclaimed success is trending on the popular social media platform.
Trade secrets
Trader “Mori226” was gracious enough to share the secrets of the successful run. The first advice is to hold at least 50% in cash reserves at all times. Next is that a trader shouldn’t beat himself up on bad trades. When taking a position, don’t put more than 25% in a single stock.
It’s not easy to analyze each trade throughout the journey. What mori226 did was to let the winners ride and cut losses on a few names. Huge profits came from Amazon.com, Apple, and Disney. The unknown trader adds that discipline and control of emotions were the keys to success.
According to Mori226, the hardest part of the spectacular run was learning to get a sense of the current trend. The best approach is never to try to outsmart the market or you could lose your shirt in the process. Because of the massive windfall, many have developed the fear of missing out.
You can be a self-made millionaire, but not in the same fashion as Mori226. Canadians can build meaningful wealth, but not through get-rich-quick schemes. Generally, you make your first million in the stock market over time. The TSX has an abundance of investment opportunities that can help you achieve your long-term financial goals.
Wealth-builder
The TSX came out with a list of growth stocks in 2019. Summit Industrial (TSX: SMU.UN) was the only real estate investment trust (REIT) in the first-ever TSX30 prestigious line-up.
Summit Industrial is showing resiliency thus far. While shares of this $1.58 billion REIT are losing by 2.32% year-to-date, it outperforms the general market (-5.5%). The current price of $11.49 per share is a good entry, while the 4.7% dividend is a generous offer.
A $35,000 position should produce $1,645 in passive income. Your retirement savings will nearly double to $69,705.70 in 15 years. The dividend payouts are safe and reliable because Summit Industrial is among the top choices today.
This REIT focuses on industrial assets, so expect rent growth as e-commerce takes root. Demand for warehouses and industrial properties will expand post-pandemic. Rent collections will be stable and growing, while vacancy rates should remain at rock-bottom levels.
Long journey
The story of Mori226 is unbelievable, although the greatest stock trade of all-time happened in 2020. But often, the journey to wealth is always long but sure.
