Make Money in Stocks

If you have always wanted to know about making money in stocks then we will explain how you can do that here. Having a savings account will not make you much money these days as the interest rates are so low. But the stock market consistently returns yields of 10% every year.You have to know what you are doing of course.

With the right knowledge you should be able to easily get a 10% return by investing in something like an S&P 500 index fund. The reason that a lot of people fail on the stock market is that they are fearful. Another top reason is greed.

You will need a broker account for your stock market investments. It is really easy to open a brokerage account and you should be up and running in around 15 minutes. There are different brokerage accounts, and you need to decide if you want an online account or a full serviced account.

Your Time in the Stock Market is essential for Success

One of the best secrets to making money in stocks is the amount of time you spend in the market. This will provide you with the best indicator and predictor of your performance. You can analyze what you have done in the past and see if you made any emotional trades that went wrong.Greed and fear are the most common emotions.

The longer that you remain in the stock market the more chance you have of your stocks going up. A quality company that you have invested in will increase profitability over time. You need to give your investments in company’s time to grow so that their stock prices will rise.

When you are in the market for a while you are also more likely to receive dividends from some of your stock holdings. If you become a “day trader” where you move in and out of stocks quickly then you will not receive any dividends.

You need to plug in to the stock market as often as you can. Missing days can really mean the difference of making a healthy annual return and not. The well respected investment firm, Putnam Investments, believes:

  • Missing the top 10 days in a year can reduce your return to 5%
  • If you miss the top 20 days in a year you can reduce your return to 2%
  • And missing 30 or more of the best days in a year can mean you lose money

The Different ways of Making Money in Stocks

There are a couple of ways that you can make money with stocks. The most obvious of these is when the share price of a stock you are holding increases. The market will look at a business and value it based on its performance. They will take account of increased profits,business expansion and share repurchases.

Wall Street uses a price to earnings ratio to assist with the valuation of stocks. If a company was to grow 20% over a number of years to increased profitability, expansion and repurchases of shares then a stock that started out with a value of $10 could easily climb to $620.

The other common way to profit from investing in stocks is the receipt of dividends. If the company you have invested in pays dividends then you will receive these in your brokerage account. You can also choose to receive a check or have the dividends paid into your bank. It is a good idea to go for additional shares rather than dividends if this option exists.

Markets often go through bubbles and when this happens you may have the opportunity to sell your stocks at a higher price for a short period of time. Obviously this is a short term strategy but if it makes sense to you to do this then you can make money.

Stop Making Excuses and start Making Money in Stocks

If you want to invest in the stock market then you always have to accept that prices can go up or down. But that is no reason not to make investments. You will see a lot of amateur investors panic if the market dips. They will end up selling their share holdings at a loss rather than take the risk that the prices will rise again.

One of the biggest excuses investors make for not investing is that they are waiting. They are waiting for a safe time to invest. What this really means is that the prices have fallen and they want to wait until they rise again. You will pay more for your stocks of you do this.

Another classic excuse is to wait for a stock price to drop even lower. An investor will come back next week when it has dropped again. But the prices could rise just as much as fall so this strategy rarely works.

Some investors will tell you that they are selling their stocks because they are “bored” of them. The truth is that making money in stocks is boring because those that wait around the longest usually make the most money. Regularly trading in and out of the stock market is not the best way of making money in stocks.

0 0 vote
Article Rating
Subscribe
Notify of
guest
28 Comments
Inline Feedbacks
View all comments
Gary Darnell

You guys are slick

Disun

good

Sharon Tarrant

Thankyou so much for this info. I am most certainly doing surveys and your information here teaches me alot.

Judy Pauley

Would like to have extra money
Send the test products please

Lexius Munoz

I would love to try this out

Regina

I would like to try it also

Newsom

I have some questions for you if you will please

Juanita

What about planning small birthday, wedding decorations party’s.

Bonnie Newman

Great educational and motivation

Sharon Daniels

This was a very good tip and tap on investing money, people are drone to getting fast money. Drugs are number #2 and yes stock market is #1 on making and taking your money, there even pushed it to the lottery and slot machines and now scratch offs and the Casinos there is all kinda ways to make money my best investment is to save your money but get you a safe because saving money has to be locked away.

oprol evorter

There is noticeably a bundle to know about this. I assume you made sure good factors in options also.

Scott Hildebrand

Would it be a good investment in a Canadian medical marawana

Rhonda S.

Yes this was very informative an it’s much appreciated

DAVID THOMPSON

I’D LOVE TO GET STARTED MAKING MONEY,WHAT’S THE MOST PROFITABLE WEBSITE OR WEBSITES?

Fatai Ajala

Which investment Banking company might be good for small investors, I mean like $3000 to start investing in stocks and Bond .

Rick Lugliani

Did you get answer on were to invest small to start
Small.? Bank, pot stocks, penny stock, startups?

Amy Griffin

Great articles always. Thanks for being there and keeping me well informed!

JEFFREY Morris

That’s a very interested in making money in stock how do you do with little or no money down

Linda Shorter

Like what I can see and cook

Dewayne Foster

Okay, I think that I could really do the home based business and the paid online surveys , but it will take some time , I really enjoy doing these surveys and I want to learn all there is to know about surveys.

Valerie willis

Sounds interesting. Profitable. How much to invest first?

Rick Ellick

Rick

Toshira Riojas

The information is helpful.

Lysette Morgan

I could use the extra money for Christmas present this year.

Otis Cobb

Informative

Blake Neal

I would love too get into the bi just need some more info please thanks

Luis Rosado

Good info, Thank you !

Billy R Silas

Great information, thanks