How to Make Money Online
Often, I find people on Q&A websites asking how to make money online. The answer they often get is that most are scams. Well, I find that one good way to make money online is by trading stocks with an online brokerage account. However, in order to make money in stocks, there are some rules you must follow and NEVER EVER break them or else you will lose money!!! I developed these rules on my own as a result of the lessons I learned from losing money trading stocks. I am sharing those rules with you so that you won't make the same mistakes. Here are the rules:
So there you have it. That is one way you can make money online that is not a scam but you could lose money if you don't follow the above rules. I look at a stock brokerage account as a savings account on steroids. You probably won't get rich overnight and you might not make enough to make a living out of, but you will be able to grow your money over time. So if you have some cash, it is better that they are sitting in a stock brokerage account than sitting in a savings account earning a meager 0.2% return in interest. Well, this is just a thought I would like to share with the world. You might already know this stuff. Others might not. Feel free to read my other articles to learn more.
- Don't spend all your money at once. I always keep some cash ready so that in case a good stock goes down, I get to buy it at the low price. So when you first open a brokerage account and have money ready to buy stocks, don't buy anything yet. Wait!! Wait until stocks fall. It might not be the next day and it might not be the next week, but eventually they will take a dive.
- Are you afraid to buy when that day finally comes and stocks are down huge and it seems like the end of the world is coming? Don't be afraid. Be happy!! Stick to buying fundamentally sound, well-known companies. Their stocks are the safest. Whenever I buy a stock in a fundamentally sound company like McDonalds or Apple after it goes down and then it goes down some more, I do not worry about it. Since I still have some cash available (see rule #1), I simply by more of the stock at a lower price so the average price I paid for the stock goes down. The stock will eventually bounce back up and the amount of money I make when I sell the stock will be (number of shares)*(sale price - average price). So the lower the average price, the more money I make!
- Don't be greedy. Do not try to make as much money as you can. I find that most of the time, I end up losing money trying to go for the big prize. So once a stock is up big, don't be greedy and expecting the stock to rise some more. You must sell sell sell!! Then wait for it to come back down and then start over from rule #1.
- Remember to diversify. Never put in more than 20% of your money in any one stock. This is a safety net so that in case a stock goes down big, it doesn't take all of you rmoney with it.
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