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How to Make Lots of Money in Online Stock Trading

Investing in the stock market can be a great way to have your money make money, particularly in today’s economic climate where savings accounts and long-term bank notes do not offer significant returns. Stock trading is not a risk-free activity, and some losses are inevitable. However, with substantial research and investments in the right companies, stock trading can potentially be very profitable.

Steps Edit

Part One of Three:

Part Two of Three:

Understanding the Basics of Trading Edit

Part Three of Three:

Developing Your Stock Portfolio Edit

Community Q&A

  • The above article offers lots of good tips. Note that the article says that "some losses are inevitable." Stock trading definitely carries lots of risk. Do not quit your job until you have demonstrated the ability to make money consistently in trading. Pick a broker who provides a "virtual" trading platform for practicing, as noted in Part 1, Step 4 above.
  • No one, not even your broker, can tell you what the price of your stock will do in the days or years ahead. The best plan is to pick stock of companies likely to prosper in the future and simply wait for them to do so.
  • Your online trading account is linked to your bank account.
  • It can take as little as $50 to open a trading account at some online brokerages. Shares of penny stocks can be purchased for $5 or less but you need to open a trading account first.
  • A stockholder does not actually gain or lose money until he or she sells the stock they hold. You will receive whatever the price is when you sell shares (less trading costs).
  • Many people make money trading online. Online discount brokers' fees start around $4 per trade and could be twice that at some online firms.

Video Edit

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Expert Review By:

This version of How to Make Lots of Money in Online Stock Trading was reviewed by Michael R. Lewis on February 18, 2017.

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