5 time tested ways to make money in the stock market

December 3, 2021

Here highlights the most effective strategies to adopt when investing in the stock market. Start with the easiest, lowest effort and lowest risk methods and end with high effort and higher risk strategies.

1. Invest in an ETF for the long-term (10-20 years) (low risk, low effort). The fact is the easiest way to make money in stocks is to invest in a broad market passive index-tracking fund. Investing in a passive ETF is easy, you do not need to select stocks, your investment is diversified and they have low management fees.

2. Invest in value stocks long-term (low risk, medium effort). Two most important criteria created by the great Benjamin Graham, Fair Value (Intrinsic Value) and Margin of Safety. Stock Screener needs to filter on investing criteria such as earning per share (EPS) growth, consistent return on equity (ROE), high return on invested capital (ROCE) and low debt using the solvency ratio. The screener needs to calculate the margin of safety using discounted cash flow (DCF). If the cash flow value is 30% higher than the company’s stock market valuation the it has a good margin of safety and it is a candidate for purchase.

3. Invest in growth stocks (medium risk, medium effort). CANSLIM is the most outstanding growth stock in investing strategies. It was designed by William J. O’Neil to produce market-beating profit performance. Using the CANSLIM criteria in investing should mean profitable returns. Current Earnings, Annual Earning, New Products, Supply, Leaders, Institutional Sponsorship and Market Direction are vital criteria.

4. Invest for income/dividends (low risk, medium effort). This essentially means investing in companies that have a long history of continually paying and increasing dividends.

5. Trading stocks (high risk, high effort). Learning stock trading and investing takes a lot of work. There are no short-cuts, but you can teach yourself by learning from the wealth of books, videos, podcasts and training courses available. You must treat you are investing seriously and not take undue risks with your capital; there are no get-rich-quick schemes.

Spread the love

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Post

PM inaugurates the second campus of Chittaranjan National Cancer Institute in Kolkata

January 11, 2022

Kolkata’s Durga Puja has been included in UNESCO’s list of ‘Intangible Cultural Heritage of Humanity

December 17, 2021

Kolkata Police, in collaboration with UP ATS, arrested 20 Bangladeshi nationals living illegally after raiding a building in Anandpur area of Kolkata.

December 15, 2021

BJP to launch 3-day sit-in in Singur today to press for 7-point-demand charter for farmers

December 14, 2021

‘Divya Kashi – Bhavya Kashi’ – BJP has decided to turn the inauguration of Kashi Vishwanath corridor in Varanasi into an event of cultural renaissance

December 10, 2021

Why Narendra Modi is the best PM of India?

December 5, 2021

BSF jurisdiction has changed from 15 km to 50 km to help, support and supplement the state police in catching the infiltrators

December 4, 2021

5 time tested ways to make money in the stock market

December 3, 2021

The concept of economic moat in evaluating stocks

December 2, 2021

Attended a camp of PM e-shram card for unorganized workers at Nimta, North Dumdum

November 30, 2021

A conference was held today at the Salt Lake EZCC Hall with BJP workers from the Bidhannagar Corporation area

November 28, 2021

Attended a protest by BJP in front of Birati Big Bazar

November 21, 2021

Bijaya Sanmelan of BJP Rajarhat Gopalpur Assembly

November 17, 2021

Social work on the occasion of Sri Sri Jagaddhatri Puja at New Town Bus Stand

November 12, 2021

Police blocked BJP protest movement in Kolkata demanding reduction of state government’s VAT on petrol and diesel

November 8, 2021

Book launch program

November 7, 2021

Felicitations of Health Workers for their services in this pandemic situation

November 1, 2021

In protest against the attack on Hindus in Bangladesh

October 19, 2021

Clothes distribution: Seva Samarpan

October 6, 2021

BJP’s Seva Samarpan campaign, cooked food was distributed to poor people

September 26, 2021

BJP Protest against deaths in Dumdum

September 24, 2021

Seva Samarpan program: Health and eye check up camp

September 22, 2021

Raise your voice to get your Justice on post poll violence

July 16, 2021

Reconstruction of Dr. Mukherjee’s Statue at Panihati Bengal Chemicals Bus Stop

June 5, 2021

Observer Shri Sunil Bansal ji

April 10, 2021

Load More...