The Wall Street Journal, Businessweek, and USA Today have all hailed the book How To Make Money in Stocks. This book describes the CAN SLIM investing method developed by William J. O’Neil, who also founded the investment journal Investor’s Business Daily. This second edition of the classic book offers a new perspective on how the average investor can profit from the market. However, it is important to understand that the market is not the only factor that determines whether an investor will make money from stocks.
One of the most effective ways to make money in stocks is to buy shares in good businesses at reasonable prices. Holding them for years will earn you excellent investment returns. Micro-investing apps, robo-advisors, exchange-traded funds, and stock index mutual funds can help you make smart investments. If you don’t have the time to invest, you can also purchase fractional shares of stocks and add them to your 401(k) account.
The trickiest part of investing in stocks is to remember the fundamentals of the market. You have to understand how each stock’s share price has benefited the company’s shareholders. The best stocks have consistently increased their prices over the last five years. While it is not easy to predict future prices, stocks are a great way to accumulate wealth. With just a little effort and time, you can build your own portfolio and enjoy a lucrative lifestyle. There are countless examples of high-profile investors who held onto their stocks and businesses for decades.
If you are thinking about making a fortune in the stock market, you must consider the long-term impact of your investments. A short-term profit might be realized through selling a stock during a market bubble, but you can also make money by buying and holding them for the long haul. Remember, the more time you spend in the market, the higher your chances of making a profit. There are many other benefits to making money in stocks.
To make money in stocks, you must open an account. This is a specialized type of investment account. Most brokerages offer both types of investment accounts. To learn how to make money in stocks, visit Forbes Advisor’s list of recommended brokerages. If you are new to investing, start with low-cost index funds. These investments will grow for years and decades. You can also consider hiring an investment adviser to guide you through the process.
Remember that the biggest gains in the stock market occur after the biggest drops. Waiting for the market to reach an all-time high will prevent you from reaping the biggest gains and will cost you money in the long run. When it comes to investing, the best investors sit on their stocks for years, allowing their gains to compound. It is not a game of “get rich quick” syndrome. You have to wait to reap the rewards of your patience.