Passive Income From The Stock Market

When you think of your money working for you, there are several options.  However, the stock market is one of the best potential returns with easy entry.  This option does not come without spending time to choose your investments.  Nevertheless, some hard work early on can pay off for decades to come.

Winning in the Stock Market

It is no secret that the best way to make money in the stock market is through long-term investments.  That should not be too surprising.  We can evaluate products and companies as being a good (or bad) bet easier over the long run than in weeks or months.  Often, it takes a lot of time and effort to get a company to where it is dominating the market.  While day-to-day fluctuations are harder to estimate, the long-term viability of a company will balance out those short-term "corrections."

Instant Money

There is no way to get money immediately from the stock market.  You primarily earn on your investment through buying and selling shares.  However, there are beautiful things called dividends.  This is an amount of money paid out regularly for each share of stock owned.  For example, assume you have ten shares of a company that has a $1.25 dividend quarterly.  That means you will be given $12.50 each quarter just for holding those shares.  That money can be spent how you like or invested in more shares of the stock. 

There are even automated plans that purchase partial shares of the stock based on the dividend without a fee.  When you use this option, there is no transaction fee.  Thus, you have the lowest cost way to build shares in the company.

Learn The Game

The stock market is not hard to understand.  However, the way companies are scored and talked about has its own language of sorts.  You will be far more likely to be successful with your investment strategy if you spend time understanding how the market works.  Here are a few places to get started.

The Motley Fool

E*Trade (U.S.)

Great Places For Beginners To Start