IS there a proven method making money from stocks ?

Answer 1

Yes.

Never fall in love with a stock.
Never bet more than you can afford to loose
Dont Take stock tips "Do your own research on tips dont rely on someone elses word"
and Research Reasearch Research........................

Remember the stock market is a cross between Musical chairs and the walnut shell game. When the music stops make sure you have a seat and a marble.

good luck

Jockee

Answer 2

Dreammaker is right, index funds are the way to go.

They are like mutual funds, but they are passively managed which means they are tied to an index and not managed by an actual person. So the S&P 500 index fund has the same stocks as the S&P 500 index which on average has had 10% increase per year since it was created.

Don't panic either. There are some years when the market does really well and some years when it performs horribly. The key is to save whatever money you can, whatever you don't need on a day-to-day basis, and invest that money in index funds. Over time, your money WILL grow. You just have to be patient and plan for the long run. Don't expect to be a millionaire overnight.

I'd also recommend buying some investment books. There are a lot out there so do your research. Read the user reviews on Amazon.com before buying them.

Good luck!

Answer 3

Yes...but managing your EXPECTATIONS is probably more important!

You can make money in the stock market over the LONG HAUL if you buy continuously, hold for the appropriate amount of time, and then sell before the stock is overpriced.

Since MOST people can't did this ALL the time, finding a mutual fund or two is a good place to start. Mutual funds are run by professional money managers who spend their entire days trying to understand and make good investments.

If you think with a book's worth of knowledge you can go out and beat the sharks at a game they play every day...your sadly mistaken. You might get lucky occasionally, but most of the time you'll be the toast.

Study the market, then invest. Don't do it the other way around. Otherwise, mutual funds are the best way to go to let a pro handle your money.

"Bulls make money; bears make money, hogs get slaughtered"

The WealthBuilder

Answer 4

Yes! Have your money invested all the time, not some of the time, not just when it's a bull market, all the time. And invest your money on the S&P 500 index. Investments in an index have never, I repeat never, reported a loss over a 10 year period. However, it is imperative that you are invested in the market all the time. The difference between a loss or gain on the year or years can be a matter of just a few days of not being in the market.

Answer 5

Warren Buffett, the 2nd richest man in the world, made all his money from his share in the company he manages, Berkshire Hathaway. He uses the 'Value Investing' method. He's made 15% or more per year compounded over decades. Its a method for the slow and patient investor, investing for 15 years or more.

Benjamin Graham pioneered Value Investing in the 1940s, buying average companies when they were at bargain prices.

There aren't so many of those very low price companies around now, so WB buys outstanding companies at average prices instead.

Berkshire Hathaway's main business is insurance, with a whole collection of other companies as subsidieries.

He only buys 'fortress businesses' with strong barriers to competition (high entry costs, patents, brand names, etc).

The best book I've read on his methods is "The Buffettology Workbook: Value Investing The Warren Buffett Way".

Its difficult to pick your own shares by this method, due to the math involved in understanding company accounts and accountants tricks. I just hold Berkshire Hathaway shares instead.

Note - WB is old, in his 70s, but he has told the board who his trusted succesor is, to carry on using the same method.

There are class A shares at $100,000 each (he refuses to split them) and class B shares at $3500 each which are a fraction of a class A share but with less voting rights. Both trade like ordinary shares with tickers BRKA andBRKB. I hold class B shares.

Answer 6

Disagreed.

There is one... just look at William O'Neill, the founder of Investors Business Daily. He's not 100% every time, but they guy certainly knows what he's doing. The problem is that people want their money RIGHT NOW.

I advise you go purchase one of his books. It's quite educational & honestly I learned more from that book than my last 2yrs in college. (I was an economics major...supposed to know something, right?)

Subscribe to the paper. It's like $200/yr -- money well spent. Very well spent. Don't invest blindly. Learn the method & understand it. That's what I've been doing the past few years & I've consistently made money.

Answer 7

Try the Dogs of the Dow theory, it holds up well over time. The best thing about it is that you can tailor it based on your risk level. Just take 10 mins and check it out -- you may find this a method that may be right for your investment style.

http://www.investopedia.com/university/stockpicking/stockpicking8.asp

Answer 8

There are absolutely NONE. The so-called "experts" are no better than monkeys at picking good stocks.

Answer 9

Not unless you have some "inside" information. But you have to be careful with that - just ask Martha Stewart.