How To: Stock Market Money Making Methods

Someone asked me what steps should or could be taken to make money in stocks. I’m glad they asked because now I can give an answer. Off the top of my head I can think of two strategies to make money in stocks. One is safe and one is risky. One is short term and one is long term. I’ll start with the safer method.

A safer method for making money in stock is long term investing. Basically the gist of it is to invest in a high dividend paying stock over a long period of time. The key to this is to be consistent. First of all you should pick an amount you’re going to invest monthly. For this example I’m going to pick an arbitrary number. Lets say you decide to invest 20 dollars a month. I picked a low amount on purpose. Anyone can start investing and making money. Next you need to find a company that pays dividends. Make sure to pick something you know will be around for a very long time. Still don’t know what type of stock to pick? I’ll give you an example.

Example: Invest in a oil company. Why everyone needs gas. They have to drive to work. So now you have your company you’re going to invest in and you also have the amount your going to invest monthly. Now all you have to do is consistently put that 20 dollars a month in to that stock. Over about 20 or 30 years you’ll start to see a nice payout. That’s a safe way.

Now for a risky way. My way is day trading with penny stocks. It’s much faster and much more riskier. For people who can’t afford to take risk I don’t recommend it. Some key tactics I recommend is start small until you know what you are doing. Using my self as an example I started out with a 50 dollar investment in stocks. I did not add anything at all. I traded using that same 50 dollars over and over and over in penny stocks until I gained enough experience to feel confident in what I was doing. I do not recommend skipping this step.

For me it only took one month to figure out what I was doing. It may take longer for different people but that doesn’t matter. What matters is getting used to the system. During this time you’ll have to learn how and what to research. Learn what to look for. Learn trends in the market. All this information will help you make money when you decide to increase your investment.

Another important tip is you have to learn to think for yourself. Do not always trust analyst. They’re human too. They make mistakes. You can use their information as advice or a lead but doing everything they say probably won’t work out to well.

Another important thing to know for penny stock is how much you make or lose on average with your current investment. For me, for example when I had $1,000 in the stock market I would gain or lose between 50 to 250 dollars. Knowing your ranges of how much you can gain or lose will help mitigate risk.

The way I see stocks is it’s a battle for knowledge. The more you have the bigger advantage you have. Your chances to make money increase with it.