Can you get rich from trading or investing in only one stock? Well, my entire account was all in on tesla stock like so so. Yes, i was rich as then. This happened yeah true story. I was a millionaire until elon tweeted, i survived elon's tweet and all i got was this lousy mug all jokes aside, profiting from investing in only one stock.

This is really against the traditional investing tips from legendary investors like warren buffett. However, we have seen individual investors putting all their money into one particular stock and saw some pretty outrageous returns. Remember the recent wall street beds movement in 2021. Remember that many retail investors stand out as gamestop and amc stocks go from double digits to rallying thousands of percent.

This is almost as if you went to sleep on earth and woke up on the moon today, we're going to explore this idea and answer if it's possible to make a living or get rich trading or investing in just one stock. And if yes, what's the best way for us to do so? Actually, just let me answer this question for you right now. Yes, it's possible to get rich by just destroying that like button just do it and you'll wake up rich on the moon tomorrow and hopefully, elon will never tweet again. Let's start approaching this topic from an investment standpoint.

Shall we be all into one stock and cross? Our fingers that will eventually get rich when investing long term. We often hear this phrase: diversification make sure you diversify your portfolio, so you don't put all of your eggs in one basket, because if you do so guess what happens when the basket breaks? That's right! You have scrambled eggs, but not the delicious kind from ihop, but the greasy powdery kind from the high school cafeteria. There are actually many valid reasons to diversify your diversification in investing means having your capital allocated into different asset classes such as stocks, real estate, cryptos or bonds, and in different industries such as tech, consumer, stables and financials. Imagine if you were only invested in a single stock in a single sector in tech during a 2000.com hype.

Well, then, you probably weren't broke when the bubble. Bursted many of the technology stocks went plummeting down, some did survive, however, they are now the tech giants. In today's technology sector, such as apple, amazon and google, it's because of investment bubbles going burst, like this conventional wisdom, tells us to diversify our portfolio so that, just in case a stock or a single sector crashes, we just lose some, but not all of our hard-earned Money for most investors, the easiest way to achieve diversification is to invest in index funds. Essentially, you could own baskets of that say: 500 different companies in one stock, for example, if you own the stock, voo vanguard 500 index fund etf, you are investing in 500 of the biggest companies in the united states.

Basically, this is a fund that tracks the s p 500. Within this fund, you are diversified in different industries such as technology, health care, consumer discretionary and many many more. So now that we know for most investors, diversification is a good idea, since it limits the risk of losing a significant amount of our portfolio. This does beg the question: can you get rich from buying just one stock i mean: do we have to diversify all of our money that much after all, we have heard about over diversification leads to average returns and billionaire investor mark cuban once said specification.

That's for idiots right because you, i know right he's only worth 4.5 billion dollars, but is he on to something what if you had just put one thousand dollars into amazon in october 2000, when it was trading for only six dollars a share? Now you would have around five hundred thousand dollars and you'll also be that annoying person at the parties. The same is true for a lot of popular stocks such as tesla apple, even gamestop and moderna, my favorite stock of all time and my favorite vaccine to take, but, like i previously mentioned in a video, revealing my investments, i do invest heavily into one particular sector Which is real estate and if you look at the percentage allocation, my money is actually not that evenly spread out or diversified into different asset classes. As for stock market, investing and much more diversified present day with most of the capital in index, funds for the s, p, 500 tech, financial and energy dividend etfs in canada, however, the original capital i built up for this stock investment and also where i had the Funding for my day, trading account were not from these diversified stock investments. A substantial portion of these funds were, in fact from the profit as a result of investing in highly concentrated individual stocks since 2013 and 2014., like i mentioned before in this video before i quit my job to become a full-time day trader, i was actually a vfx Artist working in the film industry, i have a bachelor's degree in film and computer graphics and it's from my four years of college that became very familiar with all the softwares.

The booming film and gaming industry heavily relies on. Yes, i'm talking about nvidia chips to render out all the images you guys see on the screens as well to produce a real time rendering in gaming the high quality of 3d, rendering you see today would not have been possible without a technological breakthrough by companies such As nvidia autodesk and adobe - and it is specifically these three stocks - and them only that i started my investing journey and they paved the foundation for me in my early 20s, i didn't have much to start as a broke college student, but i started with just 100 A month and slowly increased to a couple hundred per month to a couple thousand, i was buying nvidia at the split adjusted price today from four dollars to twelve dollars, adobe from sixty dollars to seventy dollars and autodesk around 50. I have since then sold all these individual investments and started diversifying these profits into real estate and index funds, but without these initially super concentrated investment profit. I would have significantly less today now looking back to more than eight years ago.

I did not invest in nvidia, autodesk and adobe thinking that i would just get rich quick from these growth stocks. I simply invested in them because i use their products every single day and i truly understand what they are capable of and how the demand has grown so substantially. Just during the four years when i was in college okay, yes, i know i did not exactly invest in just one stock and got rich from it, but i did invest heavily into a single industry, computer, graphics technology, because that's why i understood well the most recent Time i invested heavily in a single stock again was in 2019, namely tesla from the 75 split adjusted price, and now it's the biggest weight in my individual stock holdings along with apple stock. So, apparently, you could get rich from just one stock.

Okay, maybe i didn't get rich, but i did get substantial financial net worth boost from just one stock. However, i'm not saying everyone should go out there and put all their money into one specific stock or a single sector like i did. If you are an expert at an area, you see the growth and use of products from a few. Very specific companies like i did.

There might be your opportunity right there to achieve above average returns. However, i do think it's a good idea to diversify. Eventually, once you've seen, these concentrated investments go hundreds or thousands of percent to the moon. That's the reason i move these profits into index funds real estate and for day trading.

On the other hand, if you don't think you are an expert in any highly specialized and growing industry, i would not recommend investing in just a single stock or a single sector and no reading other people's research and analysis online on wall street bet, reddit, twitter, youtube Or tick tock does not make you an expert that might have worked in 2021, but it's probably not sustainable long term. The same can be true with trading a single stock when we think about the world's best athletes musicians, ballerinas, surgeons, they thrived because they have spent their 10 000 hours on repetition and doing the same practice every single day over and over again until they find perfection. The same analogy can be made with day trading. Your repetition and experience in trading.

One stock can make you a master of the stock's price action and lead you to greater success over time. You will have familiarized with the stock's prior support and resistance levels. You will know how its price action reacts to various volume, key levels and event catalysts and that's the reason. Many times i will have one or two stocks.

I love to trade, almost every single day for a few months. That was the case for amc. In the summer of 2021, i loved longing and shorting the stock to the moon and back down to earth and get the same thing while i'm trading mvacs and mrna in 2021, as well until my journal stock burned me alive. When i was loneliness turd so now, i'm shooting every single bounce to the ground and currently in 2022, in a downtrending environment.

My go-to stocks to trade every single day are amd and nvidia. I trade both of these names long on the market rally days and when the market is down or going red, i will shoot them and hop on the ride to no bound city. Most new traders will find the most success, focusing on just a small piece of the puzzle and repeating that over and over again that goes for practicing the same setups and practicing on the same stocks. I'm not saying this for you to trade, exactly the same stocks as i do, but rather to dig into your past data and find maybe one or two stocks that you have a history of success with.

You need to be able to clearly read the stock's price action and be familiar with the amount of risk. The price and range requires, and, as always, risk management should always be your priority. Just remember that time and experience are going to be your best teachers in the stock market. Hopefully you guys enjoy this video and the bad jokes.

If you're interested in learning more of my risk management strategies then feel free to check out the humble trader community. On my website, thank you guys so much for watching. As always, i'm the humble trader and i'll see you guys next time you.