Is stock investing online a good way to make extra money?
Along with a career as the primary income, what do most Americans do as a secondary form of income? Is Stock Investing good? What else is there?
Long term, yes – it is one of the best. But short term it is far more risky, in fact it is more speculating than anything else – which is very hazardous, and most people lose at. If you want to supplement your income, then look into some bond funds. Government bonds are safer but now pay very little – look into something like Corporate grade investor bond funds, or High Yield Corporate bond funds. Bonds are much safer than stocks, and better at stable income production. Like everything else though, more reward means more risk.
Filed under: Stock Investing
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I would say that stock investing is a terrible way of making extra-income. Investing is good, but it doesn’t generate steady income every year.
There’s a bit you have to learn to be any good at it. To be any good at it, you have to do lots of research. Research takes time, and to do it properly it is a part-time job.
If you’re dumping money blindly into some mixed-fund, like a mutual fund or an ETF, in theory you make money if you’re willing to wait 20 to 40 years to take it back out. Will you make enough money 20 years from now for it to be worth the investment? Hard to say.
If you’re expecting to put money in the stock market and pull cash back out every year, that’s just not going to happen. You might have one or two good years, but when the next crash happens you’ll panic, then sell, and have lost more than what you gained.
If you’re really rich and can find a good hedge fund manager that has proven results, then that can be a good way to go. Usually takes a few mil before you’re rich enough to get into hedge funds.
I would say that if you have 50,000 or more in cash sitting around in a bank account doing nothing, yes you should figure out a way of investing it. Until you have that, it’s probably better just to save money.
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Stock investing is only one of the options for investors. It can be quite profitable if you do understand what you are doing.
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Stock investing is a great way to earn extra money. This would actually be short term investing or swing trading (holding a position for a couple of months, weeks or less). The shorter the holding period, the harder it is to make consistent money.
Success in this type of trading can take 3-5 years to learn (if at all).
http://joefahmy.com/2010/03/17/recommended-reading-list-2/
http://www.chrisperruna.com/2010/01/10/2010-stock-reading-list/
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It can be, but in some cases it is not. Usually, investing is done as a means of accumulating capital although there are traders that do on line trading in an attempt to generate extra income. Some do and some do not. I suspect that there might be more that do not than do. I am certain that there are innumerable other ways to make extra money, but on line investing is the one I use.
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Long term, yes – it is one of the best. But short term it is far more risky, in fact it is more speculating than anything else – which is very hazardous, and most people lose at. If you want to supplement your income, then look into some bond funds. Government bonds are safer but now pay very little – look into something like Corporate grade investor bond funds, or High Yield Corporate bond funds. Bonds are much safer than stocks, and better at stable income production. Like everything else though, more reward means more risk.
References :
It would start as hobby, and hopefully progress to something more..
It depends on the person,..there’s some folks just not cut out for the up’s and downs of it..
Your Patience to stick with a Plan..a good plan..Try Paper Trading..
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