Research – research – research. To find winning stocks, we must research. The best way to know which stocks are going to go up in value and make you money, are the stocks that you use everyday. Stocks like Coca Cola, Apple, Facebook. These Moats aren’t going anywhere anytime soon, but now that we’re mention it.
Our word of the day is MOAT:
A MOAT is a company who an economic moat is a distinct advantage a company has over its competitors which allows it to protect its market share and profitability. It is often an advantage that is difficult to mimic or duplicate (brand identity, patents) and thus creates an effective barrier against competition from other firms.
This word is made popular by none that the one and only Warren Buffett.
Let’s Dive into our 3 Ways to get rich off of the stock market!
Number 1: Value Investing
Value investing, the old fashioned traditional way of buy and hold investing. You find a value stock that has low volatility and that’s at a great price point. Normally something that’s trading under boom value and is on Sale. —— once we buy into this stock we’re gonna buy and hold this stock and the longer we hold it the more money we make off of dividends, compounding, and growth percentage. If the market goes 10 percent for 3 years we’re pretty much making bank here. If we invest $10k and your stock goes up 10 percent each year for 3 years. At the end of that 3 year mark you would have made $13,310 a profit of $3,310
Number 2: Options Trading
Buying an option contract gives you the right to buy or sell 100 shares of whatever stock you choose, but not the obligation, meaning you exit the contract at anytime.
Options are one of the most flexible trades you can make out there. You don’t need to have a big bank account, as long as you minimize your risks and do your research, you can profit from $50 to $100 per day. To find out more information on option trading check out one of my most recent posts in this link.
Number 3: Dividend investing
Dividend investing is a strategy that allows you to make income off of the stocks you own. Investing in a dividend stock, will generate a monthly or quarterly income for your portfolio. Buying Stocks with a hefty dividend can be a great investment for traders looking to make passive income, you can make even more of a profit by reinvesting dividend payments.
For example: If we buy 100 shares of GLAD at $6.16, or Gladstone capital. we would receive 7 cents per share per month. That’s $7 per month, $84 a year. Just imagine if you bought 1000 shares.