The Top Six Ways To Make Money In The Stock Market

Investing in the stock market is an important way to make money

. There are many people who want to learn how to make money with their investment strategy. Here are the top six ways to make money in the stock market. By working these six methods, you will be able to be successful in your endeavors.

1. Dividends are a great way to make money with your investments. When you invest in a company which pays dividends, then you are guaranteeing a return on your investment. If you can find a company which has consistently paid three percent dividends, and their stock price also appreciates, then you are in a win/win situation. That is especially true in the year 2010 when interest rates are below 1/2 percent. Finding dividend paying companies is fairly easy. You merely need to use a stock screener and filter on the amount of dividends paid. You need to be careful and locate companies that have consistently paid dividends for many years. You would hate to put your money into a company which suddenly decides to discontinue paying dividends.

2. When the price of a stock goes up then the value of your investment also goes up. This is a fantastic way to make money on your investment. Stock appreciation comes about due to a supply and demand economic curve. When there is more demand than supply, then the price is driven up. This happens when investors feel that the company is a good investment. Either the company has released a good earnings release, or there is speculation that something good is going to happen. Using technical analytic techniques will also provide a way to find assets that are poised to move upward.

3. The flip side of number two is when there is more supply than demand. If you feel that there is going to be bad news, then you could initiate a short sell. This means that you are selling stock that you do not own. If the price of the stock does indeed go down, then you can buy the stock back at a reduced price. You will make money on the gap. Short selling is a risky venture. The stock price could just as easily go up and then you will need to cover the stock you have sold at an increased price. This type of investing carries an unlimited amount of loss you could incur.

4. Option trading is a way to leverage your investments. If you wanted to purchase an investment in the amount of $10,000. but only had $1,000, you could buy the right to purchase the stock. Buying options gives you the right to purchase stock at a certain price. You pay a premium for that right. If the stock price goes up, then you can sell and make money. There are many other types of strategies with option trading. I would suggest you review the many methods and risks associated with option trading before you act on this method of making money.

5. Reducing your investment costs is another way to make money on your investments. If you can reduce your brokerage fees or the taxes on your investments, then you will be setting yourself up to make money. You will have less money going out to support your investment and more money in your pocket. Finding tax free mutual funds or trading on line instead of with a professional broker are methods you can use to reduce your out of pocket investment costs.

6. Buying commodities such as oil, grains, gold or silver is another way to make money with your investments. These commodities trade in a market of their own, and you will probably have to use a broker to initiate this type of investment. With the economy the way it currently is, then gold and silver are solid investments that an investor should consider adding to their portfolio. They will help to stabilize your investment. Be careful though, because if the stock market is ever able to smooth out its volatility, then the value of investing in gold will decrease.

I would suggest that you review the many different ways that you can make money with your investment strategy. By setting aside a little bit of money into a savings plan, you can build up a position that will enable you to enter the investment world. Inflation is a terrible risk that affects everyone. By investing your money in the stock market and holding the course, history has shown that you will be able to beat the inflation monster.

by: Garth Wheeler

POST COMMENT

4 Direct Email Marketing Tips Seeking Marketing Sales Leaders Email Marketing-Opt in Email Advertising FAPTurbo Scam - FAPTurbo is Nothing But a Fraud? Stock Investor Leads- Earn Profits From The Ups & Downs Of The Stock Market Instability Telemarketing Leads: Great Ways To Increase Sales 4 Reasons Why SMEs Need To Have The Right Online Marketing Strategy Stock Investor Leads- Decide Profit Margins & Make Full Use Of Marketing Tools To It Marketing Lists - Which Is The Right Type For You? How Can You Make Profits By Just Conducting A Survey Press Release Services - For Marketing And More Wealth In A Box - Without A Doubt Change Your Life Into A Successful Web Marketer What a Yeast Infection No More Scam won't Tell You