• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Your Modern Money Tree

Building your financial future one branch at a time

  • Home
  • Family
  • Investments
  • Income
  • Ways to Save
    • Food
  • Debt
  • About
    • TERMS, CONDITIONS, AND DISCLOSURES
    • Contact
    • Privacy Policy

Make Money With Stocks: Everything You Need To Know

August 12, 2021 by MamaOf6 Leave a Comment

Share this...
Share on Facebook
Facebook
Pin on Pinterest
Pinterest
Tweet about this on Twitter
Twitter
Share on LinkedIn
Linkedin

Stocks are one of the most popular places to invest in the hopes of making money. Investing can be risky, but not all investors lose everything. Some investors start small and lose what they can, but ultimately successful. In the end, the stock market is a gamble, but it is well worth investing even if you are only investing small amounts at a time to help build your portfolio while having no impact on your family’s finances. You could end up reaping big returns on your small investments after a few years. With a little planning, you can make money with stocks.

Never invest more than you can lose

Make Money With Stocks: Everything You Need To Know

As much as we all know that you cannot make money without spending money, you should never invest more than you can lose in stocks. As a result, stock markets resemble gambling, and you do not want to gamble with the money you need for survival. 

Your bonuses at work or a side job might bring you extra money. A smart move would be to split this money between savings and hills and valleys, which can be used to cover imminent needs or emergencies. By investing a portion of your income in one form or another, such as stocks or cryptocurrency, you will be putting your money to work more than it would if it was simply parked in a savings account.

Invested funds take a few days before you can withdraw your money, so having your basic savings and a little hills and valleys account is as important as investing for long-term gains.

Diversify to make money with stocks

It is not a good idea to put all of your eggs in one basket when you’re playing the stock market smartly. In the event that one area of the stock market crashes at any time, diversifying your portfolio can help you focus. It is not uncommon to see seasonal highs and lows in different sections of the market. 

There is a risk that a particular market or company may collapse, so it does not make sense to invest all of your money in one area or company. There is a tendency to see major dips in the economy in areas such as manufacturing, travel, and technology. Don’t panic if this happens since the market will almost always climb back up.

Look for dividends

If you are looking for stocks to invest in, you should look for dividend-paying stocks. This is a simple way to make money from your stocks without having to do anything like watching carefully for the right time to sell. The best way to make money from stocks is to hold them long-term so the stock can grow in value over years. When you chose stocks that pay dividends you make money off the stocks simply from holding them allowing you to make money with your stocks rather passively.

When your stocks payout in dividends you can reinvest these into your stocks to help grow your portfolio allowing you to make more money over time. Eventually, you will have built up your portfolio enough to use your dividends as part of your regular income if you have invested enough into dividend-yielding stocks.

One of my best performing dividend stocks is actually my power company so once a quarter or so my power company pays me… That’s pretty nice considering how much we pay them. 

Invest profits back in

When you make a profit on stock sales or dividends, you should reinvest it back in instead of withdrawing it and spending it unless absolutely necessary. Investing this money back in allows you to grow your portfolio and make more money in the long run without having to invest more money into your stocks. Making more money with this strategy is a great way to continue to expand your earning potential.

Buy during a downturn

Stock markets have been experiencing massive downturns during the past couple of years. Many people with extra money or confidence that they could toss their savings into the stock market did exactly that when the market bottomed out, and the results have been beyond incredible. 

Investing when the stock market is stable can provide you with a smaller return than when it dips during a major downturn. Watch for major dips in stock markets and jump on them with some of your saved money. A general rule to follow should always be to never invest more than you can afford to lose.

Jump in when new stocks hit the market

Investing in stocks when they are first available for public sale is something many people regret. Businesses can be a bit of a gamble because you never know which ones will succeed and which ones will fail. 

Stocks of products you use yourself or have faith in are a great investment during the introductory period. The lowest they will likely ever be is the best time to buy these stocks. This puts you in a position to make large profits over the coming years. This is another case where the general rule of never investing more than you can afford to lose applies.

Sell during peaks

When a stock in your portfolio peaks out you can sell for a profit or continue to hold. To make money from your stocks you can sell them when they are high and turn around and invest back in after they drop again or you can opt to only sell your profit margin leaving your original investment in the stock to continue to ride the normal rise and fall of the stock market.

Take advantage of free stock to make money from stocks easily

We use Stash to build our stock portfolio a little bit at a time. One way we make a good chunk of cash with Stash is getting the free stocks they offer both when you sign up and during Stock Parties a couple of times a week. This free stock may not be much but it adds up and I often chose to sell ones that do not offer dividends to reinvest in stocks that do. Join stash today for $20 in free stock to get you started. 

Share this...
Share on Facebook
Facebook
Pin on Pinterest
Pinterest
Tweet about this on Twitter
Twitter
Share on LinkedIn
Linkedin

Filed Under: Investments

Previous Post: « 10 Simple Ways to Make Your Car Last Longer
Next Post: Whole Life Insurance vs Term life: A Simple Guide To Making The Choice »

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Recent Posts

  • How To Make Money With Cryptocurrency
  • Should You Get A Loan Payment Protection Plan?
  • How Your BMI Affects Your Life Insurance Cost.
  • Whole Life Insurance vs Term life: A Simple Guide To Making The Choice
  • Make Money With Stocks: Everything You Need To Know

How To Save Money On Your Mortgage

Your American Dream includes owning your own home, but not just any home. You deserve a home that is free, clear, and all yours. Paying off your mortgage fast is doable but what if I told you that you could save money on your mortgage all around? You are making the biggest investment of your life and…

Read More

How To Pay Off Your Mortgage Fast

We all know how big a step it is to own a home. A car is one of the biggest purchases you will make in your life, if not the biggest. The mortgage on your home will also be the biggest debt you have in your life. There are times when the weight of your…

Read More

How To Buy A Home In An Estate Sale

An estate sale usually consists of an open house for many people to attend and choose items they want to purchase. Sometimes, however, the house itself becomes an item for sale.  When a person dies intestate, they do not have a will, and so a probate sale is arranged by the probate court. An executor…

Read More

How To Get A Pre-Approved Home Loan, and Why You Should

Are you preparing to buy a new home? If so there is likely a lot of things you have to think about and consider. One of these is getting pre-approved for a mortgage before you start house hunting. This process can be fairly simple and there are a lot of great programs to help you…

Read More

10 Simple Ways to Make Your Car Last Longer

A car is a big responsibility that costs a lot to keep up with and it can be depressing when you find yourself forced to replace it rather quickly due to the high cost of maintenance when something goes wrong. You can protect your investment and get more use out of your car with simple…

Read More

Copyright © 2022 · Foodie Pro Theme on Genesis Framework · WordPress · Log in