You would probably be surprised if you knew just how many times I heard this question! Of course it makes sense that people are looking for the best way to profit from stocks, after all who doesn’t want a little extra cash! Let’s take a look at the best way to make money in the stock market.
Making money from investments is a great feeling. You’re putting your money to work and making smart decisions to make it grow. It’s a rush I truly love!
However, it’s not always easy! I will to admit that there’s no “golden solution” when it comes to profiting from stocks, but that doesn’t mean you can’t make some great money if you go about it the right way.
Today I want to talk about what I believe gives you the best chance to make money in the stock market. Simply put, you need to determine how much time you have to devote to making money with stocks.
Can you afford to spend a few hours each day or just an hour every week? This makes a huge difference in what your investment style should be – something I see people constantly neglecting (which ends up costing them money!)
To be a day trader, you’re going to want to be able to have a couple hours a day (during market hours) to spend. You need to be able to monitor your positions as well as examing the markets in order to put on new positions. I have seen many people try to day-trade without having enough time and it has cost them a lot of money!
For the average investor, they just don’t have the time or resources to be a day trader, and that’s not a bad thing! It’s not an easy lifestyle and there’s still great money to be made by investing with a different style that only requires limited time.
I firmly believe most people should take an investment strategy that doesn’t require daily decisions. By this I don’t mean months or even years – you can put on positions and then exit them in a few days if you want. You just want to have a position on that you are comfortable with throughout the day.
Set some time aside every week (or day, month – depends how much time you want to devote) and focus on your investments. During this time you can analyze the economy and sectors you are interested in and find some investment opportunities you like.
My other suggestion is to specialize in a certain area. This might mean that you want to focus on penny stocks. Or perhaps you would rather focus on a certain industry. Whatever the case, when you only have limited time, I suggest you try to focus on finding a specialty that works for you and that you find interesting.
The best way to make money in the stock market is the way that works for you! If you have taken anything from this article, I hope it’s that you must choose a strategy based on how much time you have to commit. This allows you to maximize your profits by choosing an investment strategy that you can follow and modify when needed.
Source by Jeremy Kensington www.positivestocks.com