How to make money in the stock market: 3 real tricks

How to make money in the stock market: 3 real tricks

November 4, 2022
4 months ago

How to make money in the stock market: 3 real tricks

Make no mistake, anyone who enters the world of stock market investments does so to make money. It is true that they also take away a series of very valid lessons for life; they learn how government policies work and how money moves. In this article we are going to show you 3 real tricks on how to make money in the stock market and how you can apply them to your interests. Remember there are no magic formulas, just effort, training and patience.

Tips on how to make money in the stock market

The stock market is not a casino

This is one of the beginner's mistakes and one of the most common misconceptions of those who want to approach the stock market with the aim of getting rich. Indeed, both in the stock market and in the casino you can make money, but the main difference is that in the casino most of the games of chance.

In the stock market there is no such variable, so it is not a question of making crazy investments to see if the bell rings. Anyone who goes into the stock market with the aim of making money on luck is going to find that it will turn their back on them sooner rather than later. Many people, encouraged by the luck factor, have started out in the stock market and have had winning positions, but that is all it was, pure luck. Then it has deserted them and they have lost all their money.

Making money on the stock market always involves training, dedicating many hours, spending the necessary time on a demo account, analysing charts, seeing which stocks are the most profitable. In short, an effort that you should not overlook under any circumstances.

Earning money by investing

The stock market can give you great opportunities to earn money and achieve financial freedom. Obviously it's something that can't be done in a mad dash, so these tips are basic to get you off to a good start.

Know what to buy

Not all assets behave in the same way, it all depends on how you want to trade or your trading style. You can trade from currency pairs, commodities, bonds... What you have to keep in mind is that, if your experience is not very high, try to specialise in a particular type of security.

If it is Forex, so be it, if you decide to attack by commodities, choose one or two that you can have permanently under control. The proverb is once again right:

"he who grasps too much grasps too little".

Knowing when to buy

Before buying, it is highly recommended that you see the evolution of the asset you are interested in, maybe you should wait some time because those shares are expensive and you are not going to get the profit you want. The stock market, although being something very complex, starts from the following premise to obtain benefits: buy cheap and sell more expensive.

Know how much to buy

Before you buy wildly, you must stick to a budget. Any sensible investor has the following maxim, you never go into debt to trade the stock market. What is the risk of losing money and finding yourself without the capital to meet that debt. Therefore, it is your budget that sets the tone. Although to get a good return we could start with a minimum of €10,000, it is not necessary to have this capital to begin with.

In fact, it is advisable to start trading with small amounts, especially if you are inexperienced. Although we have previously mentioned that you should focus on a specific type of security, diversifying your investment a little gives you greater opportunities for profit. It is necessary to know how to find the measure between having controlled a type of value in concrete and knowing what to keep an eye on another.

Knowing when to sell

Experience will forge you in this sense, as there is always the temptation to go one step further. Remember that everything that has gone up is going to end up going down, and not being aware of this can lead to a financial cataclysm. Selling always involves the uncertainty of knowing if we could have made more, but the act of selling must be swift if we have started to lose and are not going to be able to take that downturn. In order to do this, you will have to assume a series of pre-set limits, which will mark the moment of sale. It is better not to collect everything we had planned than to have to assume a costly loss.

How much money can you make in trading?

The answer to this question depends on who pitched it to you. If it is an aggressively advertised platform, they will tell you that you will be swimming in gold coins in a very short period of time.

If you ask an experienced investor the answer will be diametrically opposite. You can earn as much money as your perseverance allows you to, depending on your positions, your global vision and your way of facing critical moments.

The main premise is to keep in mind that it is a complex process, and that it will provide you with better results depending on the time you dedicate to it. Think that trading is a way of business, if there is dedication, effort, commitment and training, you can expand your horizons and make it a way of life. But you have to get out of your head that with a quick glance at the charts you are going to get good profits.

Trading is very sacrificial and can make us a lot of money, but for this you must have a juicy capital, do not expect high returns with 100 €. But this does not mean that that €100 will not have value. For someone who is just starting out, it is a figure that they can handle without a problem. As you gain experience, you will be able to make juicier investments, also more risky, but more likely to get a better return.

In short, the money you make will depend to a large extent on the time you spend working on your investor profile and training yourself. It will take time, but it will make you take the safest steps.

We recommend you join NAGA, which offers a DEMO account with $10,000 so you can test your trading skills before using real money: Open your account here

Explore NAGA's social trading.




Learn about Social Trading

Social Trading is a new system that gives everyone access to the world's best traders. You can follow top traders and automatically copy their trades. You make money when they make money with no trading expertise required. This is the Social Trading revolution.