What Is the Fastest Way to Make Money in the Stock Market?

By | September 10, 2013

Making money in the stock market is not an easy task. It requires a lot of ingenuity, hard work, and insight. In other words, you cannot just go into the stock market blindly and still expect to make a quick buck. Contrarily, you will end up losing all that you had. This happens to many people every single day. You need to ensure that your cash does not fall into the abyss. It will only become profit for others while you would have lost your entire life savings and/or pension.

There are fast ways of making money on the stock market. These ways do not necessarily mean that you may lose your entire investment by assuming greater risks. All you have to do is to study the market more keenly and invest when it is good to do so. Likewise, let go of your stock portfolios that may soon start falling. However, there is more to this than just his brief introduction into stock trading. Here is a couple of detailed ways in which you can mint your millions from the stock market.

You need to seize the opportunities that arise in cases of excess volatility.

The stock market operates like a zero sum game in most cases. One man’s loss will be another man’s profit. You need to understand this concept quickly. It will help you to make a lot of money. Great businesspersons take advantage of businesses when they are struggling or whenever anyone has given up hope on them. This is how JP Morgan made his first millions, and this is how Warren Buffet at times chooses to invest. You need to buy shares during times of extreme volatility. Do not just buy any shares that drop but those that you see a potential of a comeback. This means that you should know little more about the industry dynamics and the company in question before you can decide to rely on it.

You need to start taking penny stocks a little bit more seriously.

Penny stocks are stocks whose share price is lower than the average share prices traded on the stock exchange. However, they bring in more return than the big share prices. This is because they tend to jump up in prices at a higher rate than ordinary shares. For example, shares that cost $0.2 but then jump up to $0.4 will have increased your profits by 100%. You can thus make millions if you invest in penny stocks that are promising now but have not yet caught anyone’s eyes. You can then sell them a higher price later on.

You need to focus on individual stocks.

You need to refrain yourself from immediately selling your shares immediately they go higher than your the price you paid for them. Selling them in a rush can deny you handsome profits later on. You need to keep shares that seem promising for years to come and then wait until you feel their business is saturated. You can then sell these shares at this point. You would make a lot of money. Remember, patience is important as long as the industry dynamics remain favorable.

Other means of making tons of money in the stock market include shorting stocks and trading in commodities and energy futures. However, you should as always exercise caution but take calculated risks all the same. Remember to diversify your portfolio so that your chances of incurring huge losses are minimal.