Making money on stock market - Reality, the secret to making money from buying stocks and investing in bonds was summed up by the late father of value investing benjamin graham when he wrote, "the real money in investing will have to be made – as most of it has been in the past – not out of buying and selling, but out of owning and holding securities, receiving interest and dividends, and benefiting from their long-term increase in value. You listened to the financial media or investing press, you might get the mistaken impression that making money from buying stocks is a matter of "picking" the right stocks, trading rapidly, being glued to a computer screen or television set, and spending your days obsessing about what the dow jones industrial average or s&p 500 did recently. " to be more specific, as an investor in common stocks you need to focus on total return and make a decision to invest for the long-term, which means at an absolute minimum, expecting to hold each new position for five years provided you've selected well-run companies with strong finances and a history of shareholder-friendly management practices. In other words, if a business with a stock price grew 20% for 10 years through a combination of expansion and share repurchases, it should be nearly 0 per share within a decade as a result of these forces assuming wall street maintains the same price-to-earnings ratio.
Investing in seeds is how you grow your money. But, how do you invest? Here are 5 tips to help you profit in the stock market.