Make Money Trading in the Stock Market

2010-04-17T09:40:00.000-07:00

Financial experts always say that the stock market is the most liquid and most profitable form of investment as compared to saving in banks or investing in properties.

Indeed, trading in the stock market can be profitable if one knows the ins and outs of the game. I once saw an episode on Discovery Channel that discussed day traders, a group of people who make money everyday by buying and sellings stocks in the stock market.

These are people who are expert in determining the bull from the bear. Bullish stocks usually end the trading day on high notes while bearish stocks usually go down at day’s end. But these are very technical matters of stock market trading and, in fact, there’s an institution in the US that trains stock traders.

What I’m talking about here is trading in the stock market as a layman, an ordinary citizen. I started trading in the stock market a year ago with a $1,000 initial investment. Then I read the business page of the newspaper everyday to see which companies have statements about gaining more investments or lossing profits. These are important factors because a news about COMPANY XYZ getting investments from a Canadian company, for instance, will surely boost the stocks of COMPANY XYZ.

I started with cheap stocks. Divided my capital into five and invested each unit to one stock, meaning I had bought $200 worth of investments from five companies. I waited until day 3 and was amazed that I made nearly $150 out of my $1,000 investment. Now, my initial investment has risen to more than 10 times and I didn’t even add additional cash to my capital since I started a year ago.

And of course, I trade stocks daily through the internet.