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These are our picks for the best ways to make money in the stock market:
Buy and Hold Long-Term Investments
This is the most classic way to make money in the stock market, and Warren Buffett suggests that the typical person can do this by purchasing one ticker: VOO.
There’s not a lot of action involved with doing that, but according to him, maybe that’s ok. It’s a simple way to benefit from the stock market’s historical rate of growth, which has averaged out to almost 10% per year.
Subscribe to a Stock-Picking Service
Of the millions of individuals who’d like to profit from stock market investing, few have the time to conduct in-depth research into even a small portion of the thousands of available stocks. One solution is subscribing to the stock picking services of professional investors, whose full-time job is analyzing stocks to identify the best investment opportunities. They make things easy: you get the pick, decide if you are interested, and then just open your stock trading app and buy it.
Obviously, the first thing to look for is the service’s track record. In short, how successful has it been in picking stocks that generated above average returns? Investors should consider the service’s cumulative performance record – what’s the total return that an investor could have obtained from following the service’s stock picks?
You can also consider how they deliver the information. Some of them offer an investment newsletter. Some others offer trade alerts by either text, email, or app notifications.
We have a guide that helps you find the best stock picking services.
Take a Stock Trading Course
If you don’t like the idea of following someone else’s stock picks, you could learn to trade stocks on your own. That way your fate is in your hands.
There is typically a pretty long learning curve when it comes to being profitable with trading stocks. But many people really enjoy the journey, and it can be quite rewarding if you get through that educational process.
We came up with our own picks for the best stock trading courses.
Do Your Own Stock Research
If you already know how to buy and sell stocks, you can do your own stock research. This puts all the decision-making in your hands and can be an effective way to make money in the stock market.
There are so many different ways to look at the market and its investment opportunities. You can look at them based on the news that’s coming out about them. You could look at them based on their profitability. You could look at them based on their stock market chart patterns.
This list goes on and on, and it’s up to you what sort of research you find to be most important.
We made a list of our favorite websites for doing stock research.
Join a Trading Chat Room
For active traders, being involved in a trading chat room can offer a lot of investment ideas (and be great fun, too). Rather than being isolated and trying to figure out the complex stock market on your own, you get to mingle with others who are right there with you.
One of the key benefits is that you see a lot of different trading ideas. You may not want to take action on all of them, but the key is that you get ideas and get an opportunity to review them and see if you want to get involved.
We created a list for the best trading chat rooms.
Subscribe to get Trade Alerts
This is similar to the idea of signing up for stock picking services, except it’s for more active traders. If you like the thought of making trades in the stock market every day, then trade alerts might be something to consider.
Swing trade alerts are one popular type of alert. You get notified when swing trade opportunities become available. Swing trades are investments in stocks or options that are typically held for a matter of weeks. They are much shorter than long term investments.
If you prefer to trade options over stocks, then you can consider signing up for an options trade alert service. Options use more leverage than stocks, which means the risk and reward are dialed up comparatively. Options also have expiration dates, which by definition means that they are shorter-term investments intended for active investors.
We like Mindful Trader. He has alerts for both swing trades and options trades, and he is very forthright and transparent about what to expect and about his own performance (which can be hard to find in this industry).
There are lots of ways to make money in the stock market. The ideas covered in this article on ones that we find to be the most popular and sought after.