what are the different ways to make money on the stock market?
Public Comments
- There is only one way. Buy stocks that are going up. The smartest way is to buy a mutual fund and hold on to it for the long haul.
- Mutual Funds are a good way to enter the market. However, I assume the question is on direct entry. its blend of many things for retail investors. Start with watching business TV channels and newspapers. Listen to analysts. Start to learn concepts of p/e, EPS etc. Start small , play is slow & gradual. Another way to look at it is "believing in stories". If you believe in particular business model of company go for it and be patience. Remember to keep an eye on there quaterly performance.
- 1. Buy stocks before they increase in value (going long). 2. Sell stocks before they decrease in value (going short). Note that it is possible to sell a stock without actually owning it, it is called 'short selling.' 3. Buying/ selling options. An option is a contract that says you have the option to buy (or sell) at a certain price. e.g., say you pay $1 to have an option to buy a stock at $10. The stock later goes up to $12. You exercise your option, buy the stock at $10, then promptly sell it again at $12. You've made $1 (12 - 10 - 1) in profit, or a 100% return. Alternatively if the stock drops below $10, you allow the option to expire and you only lose the $1 you paid to buy the option. 4. You may buy mutual funds, which are pools of stocks, bonds, etc.
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