how do I make money trading on the stock market?

12 Answers

  • 1 decade ago
    Favorite Answer

    Buy when the price of the stock is low and sell when the price of the stock is high



    Here are some general book recommendations when it comes to the topic of investing:

    Stocks for the Long Run, 4th Edition: The Definitive Guide to Financial Market Returns and Long Term Investment Strategies

    by Jeremy J. Siegel

    - This is a book that I recommend to all those who are just starting to learn a little bit more about the stock market and investing in general. This book is recommended after you have a general knowledge about the stock market.

    Investments, 10th Edition

    by Charles P. Jones

    - This is a book that I recommend to all those who already have a basic knowledge about stocks and investing and for those who wish to expand their knowledge.

    Wealth Forever: The Analytics of Stock Markets

    by Sarkis J. Khoury, Poorna Pal, Chunsheng Zhou, and John Karayan

    - This is a book for people with a superior knowledge of the stock market, investing, and the mathematical formulas involved in creating financial instruments. This book is recommended for all those who want to expand their knowledge on investing using advanced mathematical principles and measures.

    Derivatives Markets, Second Edition

    by Robert L. McDonald

    - This is a book that is for people extremely interested in derivatives and in the mathematical tools needed to comprehend derivatives. This is a book for people who already possess a thorough understanding of the stock market.



    Stock Symbol: GOOG


    Stock Symbol: AAPL

    Berkshire Hathaway Inc

    Stock Symbol: BRK.A

    Stock Symbol: BRK.B

    Bank of America Corp

    Stock Symbol: BAC

    CVS Caremark Corp

    Stock Symbol: CVS

    3M Co

    Stock Symbol: MMM

    Microsoft Corporation

    Stock Symbol: MSFT

    Yahoo! Inc

    Stock Symbol: YHOO

    Wal-Mart Stores Inc.

    Stock Symbol: WMT

    Abercrombie & Fitch Co

    Stock Symbol: ANF

    Home Depot Inc

    Stock Symbol: HD

    GameStop Corp

    Stock Symbol: GME

    Citigroup Inc

    Stock Symbol: C

    Ford Motor Co

    Stock Symbol: F

    AT&T Inc

    Stock Symbol: ATT

    Coca Cola Co

    Stock Symbol: KO


    Li-Ion Mtrs Corp

    (LMCO) India Ltd


    Strategic American Oil Corp



    Hope that helped!

    ~ ~ ~

  • 1 decade ago

    The two most straight-forward ways are capital gains ("buy low, sell high") and dividends.

    Capital gains are the gains (or losses) you get from buying a stock at a certain price, then selling it some time later for more. There are long term capital gains which you get if you held the stock for at least a year before selling and used to be taxed at 15% but I'm not sure what the current rate is. Short term capital gains are from stocks that are sold within a year of buying. They are taxed as ordinary income, which will depend on your bracket but could be significantly higher.

    Dividends are the money that companies pay out to shareholders quarterly or through special dividends. Not all companies pay dividends and most will not pay a large dividends when compared to the share price, but they can be substantial. One stock of mine, Resource Capital Corporation, has been paying roughly $.30 per quarter and I bought it for less then $2/share two years ago.

    These are only two of the many ways to make money in the stock market. You can also buy and sell options which are contracts that allow the holder to force the writer to buy or sell a stock at a certain price on a certain date. You can also short stocks which, in a roundabout way, allow you to make money off a stock's drop in price or loose on it's gain.

  • Anonymous
    6 years ago

    Binary options let users trade in currency pairs and stocks for various predetermined time-periods, minimal of which is 30 seconds. Executing trades is straightforward. The system uses user-friendly interfaces, which even an 8 years old kid, can operate without having to read any instructions. But winning trades is Not easy.

    Binary trading is advertised as the only genuine system that lets users earn preposterous amounts of money in ridiculously short period of time. Advertisers try to implicate as if you can make $350 every 60 seconds; if it was true then binary trading would truly be an astonishing business.

    However, does it make any sense? Can every trader make tons of money in binary trading? Who is actually paying all the money or the profit to traders?

    The first challenge is finding a trustworthy binary broker; secondly, you need to find a binary trading strategy, which you can use to make profits consistently. Without an effective trading strategy, there is no way you can make money in this business.

    Learning a profitable trading strategy is possible, You should watch this presentation video

    It's probably the best way to learn how to win with binary option

  • 5 years ago

    With penny stocks you can make 30 percent or 40 percent profit in a few days. Learn here

    The best strategy, if you do have experience type of return on a penny stock, is to sell the stock quickly.

    Of course, it’s easier said than done. The natural thing to want when you see an increase in stock price is to hold the stock and hope for an even larger increase.

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  • Anonymous
    5 years ago

    about 15% of people day trading make money - most of them, probably very little money - every transaction you buy or sell, you have to pay a sales commission on and IF you make money on a sale, then you have to pay federal and state income tax on the gain. there is a 85% chance you will lose money - wind up with less than you started with and since you're only a teenager, chances are you won't understand much of anything on how to pick stocks (there are over 10,000 public companies out there)

  • 5 years ago

    In binary options you will have the possibility to predict the movement of various assets such as stocks, currency pairs, commodities and indices. Learn how you can make money trading binary options

    An option has only two outcomes (hence the name “binary” options). This is because the value of an asset can only go up or down during a given time frame. Your task will be to predict if the value of an asset with either go up or down during a certain amount of time.

  • 1 decade ago

    To make money from stock market is to buy at low price and sell when the price rises. This require some knowledge to be able to determine hat a is a lo price of equity.

  • 1 decade ago

    I'm kind of new too all this too but I already started. It takes a lot of work to start the right way and i wanted to try and help people get started too, so i wrote an article about what i found out. its called "How to Start Buying and Selling Stocks" i hope it helps you out and good luck.

  • Bender
    Lv 5
    1 decade ago

    Buy stocks and wait until they gain money, then sell them. It works best when you're young because you have time to let your investments mature.

  • 1 decade ago

    The first thing you must do is NOT to invest any money until you feel comfortable doing so. Read a lot and then invest small.

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