Making money in the stock market

Many people invest in the stock market. Some know what they are doing, others haven’t a clue. But, why do people put money in stocks or even perceive stocks to be something good to put your money into? Well, there is a great amount of wealth to be made with the stock market, but only if you do it correctly. The. Good news is there are numerous ways to go about it depending on your goals. So, what are some of the best ways of making money with stocks? And which one is for you?

• Investing for retirement. This is the most traditional and hands off way to invest in stocks. Basically, you will invest your money and hope that by the time you retire, you shares will be worth more along side the dividends and capital gains you earn through the process. This is the method for those wanting very minimal time investment in the process.
• trading stocks. For those who want a little more hands on, they may want to buy a stock in hopes of selling it in a shorter period of time for a sizeable gain. It may be anywhere from hours between trades and up to a few years. Generally long term is over a year and short term is under a year. There are day traders, swing traders,( other traders,). The only difference is the amount of time they hold their stock. The shorter amount of time one holds their stock, the more knowledge is required to be successful.
• Note that the difference between trading and investing at its core is that traders want the up front capital gain, even though it is taxed higher and the investor wants dividends for the long term.
• Options. This is a whole different process in itself. The concept of options is described fully in its definition () options trading has become popular because of its ease into interest and potential gains. With options, you can back out without losing your total investment. Also, you have the ability to make money in bullish or bearish markets. As long as the trend does what you are expecting, you can earn money. Options are held for short periods of time and then closed with either a gain or loss.

These are the three most basic ways to invest in stocks, each has much deeper meanings and further study to fully understand. Looking for consistent income with potential growth with minimal investment. Go for the long term investment. Making money through flipping and potentially dividend, trade stocks. If you want to make the most money upfront by trading, go for options trading. This will give you the largest gain and reduce your loss. Remember, when you do taxes, you pay more on trades you make than dividends you earn.

There are several ways to get started be it 401k, ira, Roth IRA, mutual funds, index funds, different trading platforms etc. see these in the stock investment pages.