can you make millions trading stocks

Can You Make Millions Trading Stocks?

Early in this article we answer the headline question directly: can you make millions trading stocks? Yes — some retail and professional traders have turned trading into multi‑million outcomes. But those cases are exceptions, not the rule. Achieving seven‑figure results from trading U.S. equities typically requires a combination of starting capital, a measurable edge, fast execution, disciplined risk management, favorable market regimes, and often leverage or derivatives. This guide reviews documented examples, the common strategies that produced outsized returns, the realistic probabilities and constraints, required tools, tax and legal considerations, and a step‑by‑step practical roadmap for anyone considering trading with the goal of very large gains.

Overview and Key Takeaways

• Can you make millions trading stocks? Yes, but the probability is low for most retail traders.
• Success stories are subject to survivorship and publication bias: media highlight winners and rarely the many who lose.
• Critical factors that separate rare winners: sizable capital, repeatable edge, fast execution, strict risk controls, and the ability to scale positions in strong trending markets.
• Leverage and options can create explosive returns but also raise the odds of permanent capital loss.
• Taxes, regulatory rules (e.g., the U.S. Pattern Day Trader rule), and brokerage capabilities materially affect outcomes.

This article is educational and factual; it is not investment advice. Read primary sources and consult professionals before making tax, legal, or trading decisions. If you trade crypto or want professional-grade trading tools, consider Bitget for derivatives, spot trading and custodial tools; for wallets, Bitget Wallet is recommended in this guide where relevant.

Historical and Contemporary Examples

Real people have made millions trading stocks. Studying documented cases helps clarify how those outcomes occurred and what tradeoffs existed.

Jack Kellogg — rapid gains in 2020–2021

Jack Kellogg drew media attention after reporting multi‑million returns from active trading during the volatile 2020–2021 markets. He began with modest capital, used intraday and swing setups, and scaled position sizes aggressively during extended trends. Kellogg described relying on a set of technical indicators and market internals such as VWAP, volume spikes, support/resistance and linear regression channels to time entries and exits. Media reporting emphasized how a concentrated focus on momentum names and volatility amplified results during that bull regime.

Caveats from the coverage: reported gains occurred in a highly favorable market environment, the tax and reporting implications of large short‑term gains are significant, and not all winning trades are representative of repeatable, long‑term performance. (Sources: Business Insider profiles; reporting dates vary — see references.)

Other retail success stories (Matthew Monaco, Jeff Neumann, Ross Cameron, etc.)

Profiles of other retail traders who achieved large gains show diverse paths: some achieved outsized returns via small‑cap or penny‑stock moves before reallocating profits; others coupled day trading with options to amplify successful directional calls. Ross Cameron (profiled in Entrepreneur) and others emphasize intense focus, journaling, education and iterative strategy development. Matthew Monaco and Jeff Neumann are examples where a combination of pattern recognition, quick execution, and a willingness to accept drawdowns produced large realized gains reported by media outlets.

Each case differs in starting capital, time horizon, leverage use and how gains were preserved or taxed. Many reported moving portions of trading profits into diversified investments to secure wealth after big wins.

What these case studies have in common

• Intensive learning curves and early, focused experience in a chosen niche (momentum names, options, microcaps).
• Ability to increase position sizes when their edge worked and to accept being smaller when it did not.
• Use of leverage (margin or options) in several high‑return stories — leverage magnified gains and risk.
• Reliance on market regimes; prolonged bull markets or acute sector rotations created repeated trade opportunities that made outsized returns feasible.
• Important caveats involving taxes, reporting, and control over downside losses.

Common Trading Strategies That Have Produced Large Gains

Different strategies have produced large gains for different traders. Understanding how they work, and the specific conditions that favor each approach, is essential.

Day trading and momentum trading

Day trading uses rapid intraday entries and exits to capture volatility and momentum. Traders who achieved large returns by day trading relied on:

• High intraday liquidity and volatility to get in and out quickly with minimal slippage.
• Real‑time scanners for large volume and price spikes.
• Strict risk controls like fixed dollar or percentage stop‑losses per trade.

Momentum day trading can compound small wins into large annualized returns but is capital intensive and psychologically demanding. Execution speed, low latency routing and disciplined position sizing matter.

Swing trading and position trading

Swing traders hold positions from several days to several weeks to capture larger trend moves. Advantages include:

• Less noise than intraday trading, allowing the capture of multi‑day trends.
• Lower transaction costs per unit of movement compared with high‑frequency day trading.

Large gains via swing trading typically require identifying sector rotation, earnings surprises, or technical breakouts and scaling positions into confirmed trends.

Penny stocks and microcap/speculative plays

Microcap or penny‑stock trades can deliver huge percentage moves in short timeframes, but they come with outsized liquidity, transparency, and fraud risks. Success stories often depend on:

• Finding legitimate catalysts (M&A rumors, FDA filings, earnings beats)
• Managing exit discipline strictly because bids can evaporate.

Regulatory scrutiny and the prevalence of pump‑and‑dump schemes make this path higher risk and less replicable for most traders.

Sector/thematic pulls and catalyst trades

Trading a sector around a known catalyst — for example, a regulatory decision, legislative change, M&A announcement or earnings season — can produce concentrated multi‑bag returns. This approach is often used by experienced traders who can assess how a catalyst changes fundamentals or liquidity dynamics.

Use of leverage and options

Leverage and derivatives like options are frequently part of stories about traders making millions because they can multiply returns dramatically. Key points:

• Options provide asymmetric payoff profiles but decay (theta) and require directional accuracy.
• Margin amplifies gains and losses; a sequence of small losses can lead to margin calls and account closure.

While leverage can be decisive in producing seven‑figure outcomes from modest starting capital, it also raises the probability of large, unrecoverable drawdowns.

Tools, Indicators, and Technology

Successful active traders use both human judgment and technology to scale their edge.

Technical indicators (VWAP, volume, support/resistance, regression)

Indicators commonly cited by high‑earning traders include VWAP (volume‑weighted average price) for intraday bias, volume spikes to confirm moves, support/resistance for entries/exits, and linear regression channels to measure trend slope. Indicators are most useful when part of a rules‑based system rather than as loosely interpreted signals.

Scanners, screens and watchlists

Real‑time scanners that identify top movers by volume, percent change and unusual options activity are cornerstones of modern active trading. Traders maintain prioritized watchlists and predefine trade setups to avoid reactive decisions.

Order execution, broker platforms, and automation

Fast order execution, reliable fills, and automation (algorithms, conditional orders) reduce slippage and emotion. Professional setups may include direct market access, trading APIs and co‑location for institutional speed advantages. Retail traders can still improve outcomes by selecting brokers with tight spreads, low latency and robust order types.

If you trade crypto or need derivatives and custodial services, Bitget offers advanced trading interfaces, derivatives products and Bitget Wallet for custody — useful complements for traders who bridge equities and crypto strategies.

Capital Requirements and Structural Constraints

Your starting bankroll and regulatory constraints shape what is feasible.

Starting capital and scaling

Higher starting capital reduces the need for extreme leverage and enables better position sizing relative to account drawdown limits. Traders often need substantial capital to meaningfully scale strategies and absorb losing streaks while waiting for edge to compound.

Pattern Day Trader (PDT) rule and account limitations

In the U.S., the Pattern Day Trader rule typically requires a minimum of $25,000 in account equity for frequent day trading in a margin account. This rule affects the ability of small retail accounts to execute multiple intraday trades without restriction and is an important structural constraint for those aiming to make large sums via day trading.

Brokerage and market access considerations

Differences in margin rates, fees, shorting capabilities, and order routing between brokers impact net profitability. Retail traders should choose brokers that match their needs for speed, margin, and product access. For crypto exposures, Bitget is positioned as a recommended platform within this guide.

Probability, Statistics, and Survivorship Bias

Understanding how rare large outcomes are in trading is critical to realistic expectations.

Distribution of returns among traders

Academic studies and broker statistics consistently show that a majority of retail traders lose money or barely break even after costs. A small fraction of traders account for outsized returns; these outliers drive public narratives and create misleading expectations for newcomers.

Survivorship and publication bias

Media focus on spectacular winners and social platforms amplifies success stories while failing to report the many more failures. This survivorship bias clouds the true probability of making millions trading stocks.

Typical timeframes and path dependency

Seven‑figure trading outcomes often depend on market regime (e.g., prolonged bull runs, extreme volatility) and timing. A trader who starts in a favorable regime may compound faster; those who begin in compressed or range‑bound markets may not see repeated high‑probability setups.

Risk Management and Psychological Factors

Risk management is the practical differentiator between durable traders and those who burn out.

Position sizing, stop‑losses, and risk‑per‑trade

Concrete risk rules — e.g., risking 0.5–2% of account equity per trade — protect capital and allow surviving long drawdowns. Larger risk per trade can produce faster growth but increases the chance of account ruin.

Emotional control and routine

Journaling trades, enforcing checklists, and maintaining routines reduce emotional decisions. Traders describe the value of a process‑first mindset: if the process is sound and consistently applied, long‑term outcomes improve.

Drawdowns, recovery and the cost of mistakes

Large drawdowns shrink the base required to recover. For example, a 50% drawdown requires a 100% gain to return to break‑even. Protecting capital is therefore often more important than chasing absolute returns.

Tax, Reporting and Legal Considerations

Large trading profits carry significant tax and compliance obligations.

Tax treatment of trading gains (capital gains vs. ordinary income)

Short‑term gains (positions held under one year) are usually taxed at ordinary income rates in many jurisdictions, whereas long‑term capital gains (positions held more than one year) benefit from lower rates. For U.S. taxpayers, accurate reporting via forms like 1099s and keeping a trade ledger matters.

Trader tax status and implications

Some active traders qualify for “trader tax status” which can alter how expenses and losses are treated for tax purposes. Qualification criteria are specific and should be confirmed with a tax professional; misclassification can trigger audits.

Compliance and market abuse risks

Large gains drawn from opaque strategies (especially in microcaps) can attract regulatory scrutiny for potential market manipulation or insider trading. Traders must avoid illegal activity and remain compliant with securities laws.

Ethical Issues, Education, and the Coaching Industry

The trading education market is crowded. Separating helpful instruction from overhyped promises is essential.

Promises, marketing, and performance claims

Red flags include guaranteed returns, cherry‑picked trade screenshots, undisclosed fees or conflicts of interest, and pressure to join paid rooms. Always ask for verifiable, audited performance and look for realistic risk disclosures.

How to evaluate trading education

Prefer educators who publish full performance records, teach risk management, emphasize loss examples, offer transparent methods and encourage independent verification. Practice via paper trading before risking capital.

Practical Roadmap: How to Approach Trading if Your Goal Is Large Returns

If your objective is to make millions trading stocks, follow a deliberate, risk‑first path.

Education, paper trading and incremental allocations

Start with structured learning: study price action, options, leverage dynamics, and the tax/regulatory environment. Use simulated trading to test strategies and build confidence without risking capital. Once consistent on paper, deploy small real allocations and scale slowly.

Building a repeatable strategy and edge

Document rules for setups, entries, position sizing, and exit logic. Backtest where possible and measure key metrics: win rate, average win/loss, maximum drawdown and expectancy (average return per trade). A documented edge that survives transaction costs is essential.

Risk‑first scaling and capital preservation

Scale only after demonstrating consistent positive expectancy across market regimes and with robust risk controls. Protect capital first; large returns are impossible without capital.

For traders crossing into crypto markets for diversification or opportunity, Bitget provides advanced order types, derivatives and custodial tools to manage complex strategies while maintaining operational security.

Alternatives and Complementary Paths to Building Wealth

Trading is one path; others offer different risk‑return tradeoffs.

Long‑term investing (index funds, ETFs)

Passive investing in diversified index funds is a high‑probability path to wealth accumulation for many people due to compounding and lower fees. It contrasts with the low probability, high‑volatility path of seeking millions through short‑term trading.

Combining trading gains with diversified investments

A pragmatic approach is to treat trading as a satellite strategy: pursue higher‑risk trades with a portion of capital and move realized profits into diversified assets (index funds, bonds, real estate) to preserve wealth and compound over time.

Several traders profiled in media moved trading profits into passive investments once they reached certain wealth milestones, reducing exposure to future trading volatility.

Myths, Misconceptions, and Frequently Asked Questions

• Is day trading a fast track to wealth? For a tiny minority, yes; for most, no. Day trading is labor‑intensive and statistically unfavorable after costs unless you possess a real edge.
• Do all successful traders use the same indicators? No. Indicators are tools; what matters is a disciplined, repeatable process and risk management.
• Can you get rich from penny stocks? Possible but unlikely and riskier due to fraud and illiquidity. Exercise heightened caution and compliance awareness.

Practical Examples, Data Points and Timeliness

• As of December 31, 2025, xAI and related infrastructure investments were reported to be scaling GPU capacity aggressively, illustrating how sector leaders and infrastructure can change market regimes (source reporting in late 2025). This kind of sectoral acceleration creates concentrated trade opportunities in public equities for those who can identify timing and catalysts.
• As of January 14, 2026, market reporting showed XRP trading patterns and liquidity shifts in crypto markets, a reminder that cross‑market flows between equities and crypto create correlated opportunities and risks (source: news reports dated Jan 14, 2026).

Include current data points in your analysis and always note the date of the report. Market conditions change; what worked in 2020–2021 bull runs may not replicate in later years.

Actionable Checklist Before You Trade for Large Returns

• Define your objective and timeframe clearly (e.g., grow account to $1M in X years).
• Build and document a repeatable strategy, with entry/exit/risk rules.
• Validate the strategy via backtesting and forward testing (paper trading).
• Confirm you meet regulatory and tax planning needs (consult a tax professional).
• Start small, scale only after consistent performance and drawdown control.
• Keep detailed trade journals and review weekly/monthly.
• Transfer a portion of realized profits to diversified holdings to preserve gains.

For traders bridging equities and crypto exposures, explore Bitget’s trading products and Bitget Wallet for integrated custody and execution options.

More on Taxes and Reporting (Practical Notes)

• Maintain accurate records: trade dates, prices, fees, outcomes, and wash sales where applicable.
• Understand short‑term vs. long‑term tax implications in your jurisdiction.
• Consider the cost of professional accounting when trading at scale; this expense is often justified given the complexity of reporting large numbers of transactions.

Final Thoughts and Next Steps to Explore

Can you make millions trading stocks? Historical examples show that it is possible, but those outcomes are exceptional and require a combination of capital, skill, timing and discipline. The dominant risks are psychological (overconfidence), structural (PDT rules, margin calls), and tax/regulatory. A balanced approach pairs disciplined trading with diversified wealth preservation.

If you want to explore active trading tools or combine equities and crypto strategies, review platform capabilities and custody options. Bitget provides advanced trading interfaces, derivatives, and Bitget Wallet for traders seeking integrated execution and custody without third‑party fragmentation. Consider starting with education, backtesting, and small live allocations.

References and Further Reading

• Business Insider profiles of retail traders (multiple pieces, various dates). Check original reporting for timestamps and tax/earnings details.
• Entrepreneur profile on trader Ross Cameron (publication dates in sources). As of mid‑2020s reporting, he emphasized education, journaling, and risk controls.
• Yahoo and Sahm reporting on retail trader case studies and strategy details (various dates).
• Market reporting on AI and infrastructure expansion (reporting through 2025) highlighting how sectoral shifts create concentrated trading opportunities.
• Crypto market reports (e.g., Jan 14, 2026 market snapshots) showing cross‑market liquidity examples.

All readers should consult original articles for primary context and verify dates and figures when planning trading strategies. Reporting dates are noted next to each source in their original publications.

Further exploration: study tax guidance from official revenue authorities, read regulator publications on market manipulation and investor protection, and test strategies with paper trading before committing real capital.