Investing Money to Make Profit

investing money to make a profit

Who do you invest money to make a profit, without getting hurt?

Investing Money to Make Profit is what StockIdeas.org is all about. And while there are a number of ways to invest money to make a profit, we’ll focus in on the most actionable ideas in this blog post. You see…

Investing money to make profit is the only sustainable way to invest. While day trading, macro-economic analysis and market-watching can be fun, if you’re not consistently making profits in the markets then you have no business managing your own money. Even if you’re still learning, you might be better off practicing how to make profits from investing using a stock simulator, before putting your real money on the line. I’m sorry if that sounds harsh. But this is the real deal so you want to focus on profits!

Now let’s look at the most common ways to make profit investing in the stock market…

Building Assets: The Classic Approach to Investing Money to Make Profit

Investing money to make a profit sounds like a great goal. But it’s a little tricker than you might think. Traditional financial advisor wisdom will tell you to buy and hold a diversified basket of assets. Over time, proactively building your asset base by regularly investing will lead to long term profits. Now I’m not saying focusing on long term profits is bad advice. But…

If you’re reading Stockideas.org you’re probably a little more interested in actively making money in the markets right now. And I don’t blame you. Extracting regular profits from the stock market is fun. And as I show in my mini-ebook (available free on right side of page) swing trading can be complimentary to a longer term focus on building wealth through asset accumulation. So how does that work exactly?

Capital Gains: My Favourite Way to Invest Money to Make Profits:

When investing money to make profit, of course you want to focus on long term wealth. That should go without saying.  But is there a way you can invest money for the long term, and make a profit in the short term? I contend that yes, there is…

While I’m basically a long term fundamental investor who looks for a margin of safety in my investments, I also use swing trading techniques to regularly extract profits from my investments in the stock market. This is how I actively compound my investment gains. Curious?Let me explain.

I can regularly make profits from investing because I accept the market is irrational in the short term. When my core long-term holdings go up 5% or more in a day or two, I often sell a little bit for a capital gain (profit) because I know the stock will probably come back down a couple of percentage points. By focusing on managing my long term positions in a short term timeframe I am able to invest money to make a profit. It’s actually easier than you think. And if you’re curious to learn more you should read this swing trading example strategy that shows how I apply this idea. I also share these examples in real time with my premium stock idea subscribers.

You see…

Once you accept the day to day fluctuations in stock price often have little to do with the long term fundamentals of the company, you can regularly extract capital gains from the stock market by swing trading. This is by far my favourite way to invest money to make profits. But if you’re not inclined to try swing trading out, there is another way to make profits from investing money the stock market..

Dividends: A Reliable Strategy for Making Investment Profit…

Dividends are a great way to profit from investing money in the stock market. That’s because not only are dividends predictable, but you can always reinvest them to get even more dividends in the future. Dividends can eventually snowball your profit. And while you would need a 7 figure amount of money if you wanted to live exclusively off dividends, you can still regularly make profits by buying dividend stocks.

Dividends are a nice way to add some investment income into your stock portfolio. And it can be really comforting to know that you’re going to get a cheque every quarter from your portfolio companies. Of course as with any investment, there is a risk when chasing dividend yield, and companies do sometimes cut their dividend. But for the most part this is a pretty reliable way to make profits from investing your money. So…

If you’re interested in learning more about making profits from dividends, then I encourage you to read this short article about finding the best high-dividend yield stock ideas. As I said, dividend investing has a lot of value and can be a very consistent way to get profits from the money you invest in the stock market. And at the end of the day, that’s what your trading and investing strategy should be about. I mean…

While it’s fun to talk about the markets with your friends and colleagues, make sure you remain focused on your P&L. Because if you don’t make profits you won’ be able to keep investing!

And By The Way: If you’re curious to learn more about how to regularly extract capital gains from the stock market, I encourage you to sign up below using the form on this web page. You’ll get interesting behind-the-scenes insight into how I approach the markets to profit from my investments…

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