If so, how do you make money, and why would you want to?
This is the question that I think about most when I make my money on a big trade—my big trade.
Why I Want to Make Money Scalping: Scaling
Scalping is not a game that most of you will have an easy time winning. Scaling the game of investing can make you very rich, but for me it’s not a game either (there are plenty of other games I played growing up, like Scrooge McDuck for one). However, scaling the game can pay off when one puts their money into a business, and that starts with having the confidence to say “I can make money scaling this business.”
Scaling means that not only does a business have to be profitable, but it has to have a positive ROI. When I look at a company like Amazon, if it is running at 20% or 35% profit margins, and the CEO makes 5 to 10 times more than his employees and has a company board that owns 25% of the stock, there has to be a reason why he is still making a profit. It doesn’t matter how much he personally made while he was CEO, it will always be on the company’s balance sheet.
A successful business can have any number of things happen, either the business can be acquired to expand production, the company has more revenue, the company has more profits, etc.
There are other companies too, like Facebook, whose CEOs make over 200 times what the employees make, and the CEO still makes a healthy profit. If you can scale a successful business, you can scale an entire industry too—just as you can scale Amazon’s sales, Facebook’s advertising market is huge!
You should also be able to scale your business by making improvements, by hiring more employees, and by diversifying the market. A company that is in the stock market and selling more shares to fund future expansion will take a big hit if they lose their investors.
How to Increase Profit on Scaling Businesses
The biggest mistakes most companies make is that they are looking for profits that can increase rapidly, rather than thinking about how many profit margins they are able to make, or the types of profits they are able to make.
Here are five steps that I suggest you take to increase profits on this type of business:
1. Make More Money With Investing
What I did to increase my Sc
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