Are you thinking about how to make money in stocks? Then you should invest long term in stocks during the good times and even in the bad times. I have learned through the experience that to succeed in the stock market; you need to keep emotions at bay. I have seen emotions such as greed and fear make investors lose money because they invest in the wrong stock. Here are some tips I have used to make money trading on stocks.

1. Invest for long-term

The longer I retain the stocks; the more opportunities will come my way. Companies make their profits over a long time and I get rewarded handsomely when their stock prices increase. Staying longer with stocks also allows me to collect dividends from the companies I have invested in.

I find this video quite interesting, you might check it as well after you read this article

Needless to say, there are plenty of strategies for investing in stocks. It is up to each investor which strategies he involves in his portfolio. Long-term investing in stocks is one of my few strategies I use.

2. Invest in index funds

You may as well invest in index funds because they are (said to be) the easiest and smartest investments that anyone can make in the stock market. You do not have to know every detail about the individual company to make profits from their stocks. As long as you invest for the long-term, you will probably make money.

Everything depends on

  1. your risk aversion,
  2. expected appreciation
  3. and your investing time horizon.

3. Avoid the herd mentality

This is the advice that I can tell will reap significant returns when trading in the stock market. Do not sell your stocks because influencers are selling theirs. Through my experience in stock trading, I have learned that these strategies do not always work well. Sell only when you have a tangible reason.

Worst time to buy stock

Do you know when is the worst time to buy a certain stock? When it may be too late? When your hairdresser tells you to buy this stock.

4. Do not time the stock market

In my long-term investing strategy, I don’t try to time the stock market for the best prices because I know that possibly no one has ever done it with success.

It is impossible to catch the top and bottom prices of any stock. If you are planning for long-term investments, then I advise that you should never try to time the stock market.

Interesting resources about this topic

A) Does Market Timing Work by Mark W Riepe here (image source: Schwab.com)

market timing

B) Time, not timing, is the best way to capitalize on stock market gains read here (image source: Putnam.com)

does market timing work

5. Never let emotions influence your judgment

Whenever I feel overwhelmed by emotions, I stay away from the stock market until I am calm. A lot of investors lose their money every day because of making decisions out of emotions. Do not let fear or greed drive you to invest in the wrong shares.

How do you make money in the stock market? The secret to making money in stocks might be to invest in the long term. You might reap quite large returns when the company makes profits in the year.

 

Did you read my article about How to start investing?

How to start investing (5 tips)

Quick Summary

how to make money in stocks 5 tips

Have questions about this topic? Feel free to contact me at info@99forecasts.com

Tomas Zabloudil

I specialize in growth stocks. Trying to find next big super performance stocks. I use fundamental and technical approach. I believe, that the mastery comes after practicing one skill for 10,000 hours. Addicted to financial charts since 2008. Live in Prague, Czech republic.
Tomas Zabloudil

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