You hear about a lot of stories where people make a lot of money from buying and selling stocks. There are many types of stock traders, although all investors – including Warren Buffett – agree that investing in the best stocks for long periods of time is the strategy that gives the best returns.
Some are known as chartists who watch the stock market daily, looking for opportunities to trade. These people are often referred to as day traders.
There are other investors who invest their money in low-risk conservative stocks to make them money in the long-run. These stocks usually will come with an annual dividend.
There are also investors who like to invest in high-risk stocks. These stocks aren’t really heard of but have the potential to blossom.
How to Get Started with Investing in the Stock Market
You may wonder: is it easy to make money in the stock market?
The answer to that question is very open-ended. It could be yes. It could be no.
One website called Wealth Morning provides a good service to get you started with investing in stocks across the globe.
They offer a paid service called Lifetime Wealth Investor. It provides you with premium research, giving you insights on what stocks have the best potential. These range from conservative low-risk stocks to high-risk stocks.
This is an ideal solution for people who are trading stocks regularly, as well as new investors stepping out into the markets for the first time.
How to Earn Money by Selling Stocks
Here’s the big question: when is the right time to sell stocks?
If everyone knew the answer, then every stock trader would likely be very wealthy.
No one can predict exactly. But Warren Buffett, the world’s greatest investor, says that he does what the opposite of what everyone does.
When the markets are running high, he sells. And when the markets are running low, he buys. One example was when he invested in the Bank of America in 2011.
The Bank of America was facing big economic concerns. These concerns were made up of legal liabilities, government regulations, and fear of not having enough capital to potentially pay back all their investors.
Warren Buffett jumped in on this opportunity. He invested in US$5 billion worth of shares. As of 2017, that investment is worth around US$16 billion.
Is Investing in Stock Markets the Best Way to Make Money?
Investing in the stock market is a good starting point for passive income. It is about allowing your money to make money for you; instead of relying solely on your regular day job.
For example, if you had put away US$1,000 into the Bank of America in the early ‘90s, your capital in 2019 would have grown by 300%. It would be worth over US$3,000, as well as collecting dividends while you sleep.
Also, jobs in certain industries are limited in terms of their earning potential.
For example, if you were a taxi driver or a pilot, you would have to increase your working hours in order to make more money. This may not be possible as there will never be more than 24 hours in a day.
By comparison, having a portfolio of stocks increases your potential to make money. It does so in a way that’s almost unlimited.