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The Three ways to make Money in the Stock Market
What is the fuss?
In the 1600s, the Dutch East India Company pioneered a unique way of raising funds for its sea voyages. They raised money from a group of investors in return for some of the profits from their explorative journeys. Little did they know, they were laying the groundwork for what would become the stock market.
Fast-forward five centuries, and the stock market has evolved and embraced technology, making it accessible to the masses for trading and investment. Many companies dream of going public, and investors aspire to make significant returns. While many try, some manage to succeed, and few thrive.
There are many ways to lose money in the stock market, but only some to make money. In this post, I list the three ways money is made in the stock market.
Once you know how money can be made, you can be better at stock picking, being patient, and determining if the stock market is the right investment instrument for your financial goals. Let’s get started.
Note 1: I will discuss wealth creation from long-term investment, not trading or derivatives/options.