How to Make Money on the Stock Market [Guide]

Published: December 28, 2020 by Andrew

Is it possible to Make Money on the Stock Market? Who can do it? Only the great millionaires experts or even the novice traders?

These are questions that we are often asked and to which it is worth giving a complete answer: after all OnlineTradingCourse.net is now the reference site for those who want to start playing the stock market and do not want to make mistakes.

The answer is that YES, today it is possible to make money on the stock market even if you start with a small capital and with zero experience.

In fact, to be precise this has always been possible: just think of Warren Buffett who started several decades ago with literally pennies and with few books to study. Today he is one of the 3 richest men in the world (having donated several tens of billions of dollars, otherwise he would probably be the very first).

What has changed is that today thanks to the internet it is much easier to invest, from a technical point of view, and there are many more courses to study.

In this article we explain in detail how to make money on the stock market starting from scratch.

We also present the best platforms to invest in the stock market, including eToro. Fortunately, today we have numerous trading platforms available to invest in the stock market (and we will talk more about the best ones later). Why did we choose to immediately mention eToro?

Because it is the easiest platform to use for beginners and allows you to copy, in a completely automatic way, what the best investors in the world do. Thanks to eToro, therefore, beginners can immediately get the results of the best investors and can also learn how to invest (if they want) because they can observe live what the best are doing.

You can sign up for free on eToro by clicking here

How to invest in the Stock Market

The first step is to understand how to Invest in the Stock Market. Very often beginners ignore some fundamental concepts and this prevents them from making money (or even losing money).

How does the Stock Exchange work? The Stock Exchange is a regulated market where shares, that is, shares of the capital of companies, have changed.

These shares have a price that can vary: the price depends on various factors, such as the general economic outlook, the company’s ability to generate profits, any positive or negative news, etc …

Very often it is thought that to make money on the stock market you have to Buy Stocks and wait for the price to rise. It is an excellent technique, rather intuitive, but it is not the only one.

In fact, experienced investors have an incredibly powerful weapon at their disposal to always make money, even when the stock market falls.

Make Money on the Stock Market when Stocks fall

But how do you make money on the stock market when it goes down? There is a speculative operation, called Short Selling, which allows you to make a profit when the value of a financial security falls.

It is called short because it is not necessary to have bought before selling: from a conceptual point of view, short selling is equivalent to selling what you do not have to profit on the decrease in price.

In this context, we are not interested in the theoretical question: we are interested in knowing that it is possible (indeed easy) to make a profit even when the price of the shares falls.

All you have to do to earn is make correct stock market forecasts. If you predict that a stock is destined to go up, you buy it, if you expect it to go down, you sell it short.

This concept is fundamental and also gives us the opportunity for a psychological deepening. There are beginners who fall in love with securities in an irrational way: today they are stocks like Amazon or Netflix, 40 years ago they were Insurances.

These people buy Netflix, Amazon (or any other stock) without considering the fundamentals and ignoring that in some moments it is much better to make money by selling short …

Falling in love with a security is the worst thing you can do, also because no stock can grow forever.

Best Platforms to make money on the stock market

Unfortunately, not all trading platforms offer short selling. Not all of them are free (some apply annoying trading fees) and not all of them are easy for a beginner to use.

For this reason, we have selected the best trading platforms to invest in the stock market, choosing the free and easy to use ones. Obviously they are secure platforms, authorized and regulated at European level and with European licenses.

Platform: etoro
Min. Deposit: 50€
License: Cysec
  • Social Trading (Copy the best)
  • Simple and intuitive
  • ➥ Start
    1star 1star 1star 1star 1star
    Platform: xtb
    Min. Deposit: 100€
    License: Cysec
  • Free demo
  • Free Course
  • ➥ Start
    1star 1star 1star 1star 1star
    Platform: iqoption
    Min. Deposit: 50€
    License: Cysec
  • Free demo without limitations
  • Minimum deposit low
  • ➥ Start
    1star 1star 1star 1star 1star
    Platform: ubrokers
    Min. Deposit: 250€
    License: Cysec
  • Free Training
  • Zero Commissions
  • ➥ Start
    1star 1star 1star 1star 1star
    Platform: trade
    Min. Deposit: 100€
    License: Cysec
  • Free demo
  • Free course trading
  • ➥ Start
    1star 1star 1star 1star 1star
    72.30% of retail CFD accounts lose money
    Platform: forextb
    Min. Deposit: 250€
    License: Cysec
  • Free trading course
  • Free trading signals
  • ➥ Start
    1star 1star 1star 1star 1star

    Here are the detailed reviews of these platforms.

    eToro

    eToro is truly one of the best platforms for those who decide to start investing in the stock market. It is a very easy platform to use, even for those who are really starting from scratch and it is completely free and without commissions.

    The biggest advantage of eToro is the ability to copy, in a fully automatic way, what the greatest traders in the world do.

    How is it possible? Thanks to Copytrading (patented system) it is possible to easily find the traders who have obtained the highest profits with the least risks. The user can select the traders he wants to copy and the software will replicate, in real time, everything they do on the market.

    The user does not have to do anything more, except monitor the results he gets: the software will take care of all the operations.

    You can sign up for free on eToro by clicking here

    Indeed, eToro works better than any automated trading system.

    ForexTB

    ForexTB is the other great option for those who want to start investing in the stock market and just don’t want to make mistakes. It is a free and commission-free platform, perfect for beginners as it is very intuitive.

    Among the main advantages of ForexTB is the possibility of being followed on the phone by a real stock market expert who provides information and advice.

    Those who want to learn, have the opportunity to download for free one of the best trading courses available today.

    The success of this course was tremendous: hundreds of thousands of downloads in just a few months.

    Why? First of all, because most of the courses that explain how to make money on the stock market are paid (and cost a lot) while the ForexTB course is 100% free.

    Furthermore, these paid courses are often full of theory and therefore useless for those who simply want to understand how to make money on the stock market and do not have to take a university exam. Among other things, paid courses are often also characterized by a technical terminology that a beginner can hardly understand.

    The ForexTB course is completely practice-oriented and is written in simple language that everyone can understand – that’s why it’s so successful.

    Click here to download the ForexTB course for free

    The benefits of ForexTB don’t end there. For those who are learning to play on the stock market, there is the possibility of trying to use the platform in demo mode, that is, with virtual money. In this way, valuable experience is gained without any risk.

    You can sign up for free on ForexTB by clicking here

    Iq Option

    Iq Option is a platform chosen by many of those who start investing in the stock market. Among the great advantages of Iq Option there is the great ease of use and above all the possibility to start investing with a capital of just 10 euros.

    The other platforms usually require at least 250 euros. Iq Option therefore truly offers everyone the opportunity to start earning on the stock market, even those who don’t have their own money to invest.

    For those who want to learn, then, the official Iq Option website contains numerous videos that explain trading in detail, starting from the fundamentals to get to the most complex and profitable strategies.

    Iq Option also offers a free, unlimited and unrestricted demo account.

    You can sign up for free on Iq Option by clicking here

    Make Money on the stock market: Easy Money?

    Up to now we have explained, in detail, what are the theoretical concepts and practical tools to make money on the stock market.

    But beware: we never wrote (and never will) that this is easy money. From a technical point of view, we cannot even say that investing in the stock market is complicated but, we repeat, it is not about easy money.

    Even with eToro you have to dedicate time and effort to select the professional traders to copy and you have to check the results they are generating day after day.

    Anyone who promises easy money, without taking the time or effort, is a scammer. Better stay away from it.

    Read also: Financial Investmentments.

    Loosing on the Stock Market

    Now we know how to make money on the stock market. What can we say about those who lose on the stock market?

    First, it is important to point out that all financial markets present risks. Some of these risks can be completely eliminated, others can still be controlled appropriately.

    Unfortunately, many beginners ignore these fundamental concepts and therefore end up losing on the stock market. It is no coincidence that we always suggest studying, there are excellent free courses like this (click to download for free) that could avoid many problems for beginners …

    But which are these risks?

    Inadequate trading platform

    One of the most serious risks for those who start investing in the stock market is choosing an unsuitable trading platform. For example, a platform that is not secure because it is not authorized and regulated and therefore could scam its customers.

    Or a platform that charges fees, this last point is essential for those who decide to operate with small amounts.

    If I start trading on the stock exchange with a capital of 250 euros and, for example, pay a commission of 7 euros per operation, my capital will be zeroed in about 30 operations, provided that they all close in profit.

    This is why those who want to trade with small amounts must choose only and only platforms that allow you to operate without commissions.

    Market risks

    We have said that all financial markets are risky, even the stock market. Nobody, not even the best trader in the world, is able to make stock market forecasts that are always and in any case accurate.

    Is this a problem? Absolutely not for those who know how to manage and limit risk. The first technique to apply is that of Money Management: it is not advisable to use all the available capital on a single investment operation. Better to break it down into small shares and use each share on a single trade.

    In this way, even if a single trade goes wrong, the profits generated by the others will more than compensate for the losses.

    Another fundamental tool for limiting risks is the Stop Loss (a pity that many beginners do not know it at all). With Stop Loss it is possible to establish in advance, operation by operation, what is the maximum loss that you are willing to suffer.

    Thanks to the stop losses, properly used, those with a minimum of experience can control the risks and avoid losing on the stock market.

    Method to make money on the stock market

    Is there a way to make money on the stock market? We don’t like the expression that much because it has been used and abused by various scammers who have sold their miraculous method (which then only makes you lose money).

    We can say that the stock market is not as difficult as it seems and that everyone can manage to earn by following these steps:

    1. Knowing, from the start, that it takes commitment and time
    2. Carefully choose a safe, easy to use, commission free trading platform
    3. Study thoroughly and practice with the demos
    4. Start trading with small amounts (250 euros is usually enough)
    5. Constantly improve experience and knowledge

    In short, the usual method of hard work and commitment that brings results in life. It may seem like a tiring journey, but the results come and can be truly spectacular.

    make money on the stock market

    Conclusions

    Unlike what is usually thought, earning on the stock market is an activity that everyone can do, provided, however, that they know how to do it and use the right tools.

    In this article we have explained what is the best way to make money on the stock market and which are the best platforms to use. In any case, it must be remembered that the stock market is not a way to make easy money. Easy money just doesn’t exist!

    What does it mean to make money on the stock market?

    It means making a profit from the movement (rise or fall) of the stock price.

    Can beginners make money on the stock market?

    Of course, as long as you know some basic principles, use secure and easy-to-use platforms, and dedicate time and effort.

    What is the best way to study the stock market?

    The free ForexTB course is highly recommended because it is easy to study, comprehensive and very practice oriented.

    How much money do you need to earn on the stock market?

    The best platforms usually require 250 euros but there are cases (Iq Option) in which just 10 euros are enough.

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