The best way to make money in the stock market is the buy low and sell high.  That requires that you actually buy low and sell high.  There are all sorts of fancy-dancy indicators out there to measure the strength of a company, or its risk, or whatever.  But at the end of the day, if it is a “stable” stock, history is the best picture of the future.  You can make lots of money on this one simple principle.

Sure there are IPO’s and hunches and all sorts of advice out there, but remember that if you want fruit, and any fruit will do, your best investment is what is cheap.  So buy the cheap “fruit” and sell it when someone else wants to buy it.  They will pay a higher price because they listened to their brother’s friend’s sister instead of me!

How to Make Money in the Stock Market

So here’s an outline of what you should have learned.

  1. Commit to success
  2. Find stocks that are “low” for the year and trade at least $1M a day in volume.
  3. Buy them.
  4. If they go down, buy more.
  5. Use a stop-loss when you are ready to sell
  6. Repeat