How to make extra money with the Stock Market

How to make extra money with the Stock Market

Do you have some extra money to invest? Are you patient and want to turn it into a little more? With a little research and planning, you can increase your savings far more than simply earning interest. Here's one way.

Difficulty: Moderate

Instructions

Things You'll Need:

·       Money to invest

·       A stockbroker

·       Time and willingness to research

·       Patience

1.      Step 1

First thing you want to do is determine which stocks you may want to purchase. My favorite has always been companies that have been around for 7+ years, but whose history shows a volatile fluctuation in stock value over a year's period. The more volatile, the better.

2.      Step 2

After you have your list of possibilities, determine which companies have the greatest variance between their highest and lowest value point for the year. Look at their history and determine if it generally repeats the basic pattern year after year. Most production companies follow a pattern of sorts of seasonal gains and losses.

3.      Step 3

If you see a pattern, such as in spring the company does great and they are valued highest, where every Winter they are valued lowest, generally speaking, determine if the variance is worth investing in. If it's a 80% variance, it's worth it.

4.      Step 4

Purchase your stocks at a time closest to the low point you can get, obviously, when the stocks are at their cheapest. Then simply hold on to them until the high point of the year rolls around.

5.      Step 5

Do this with multiple companies, so as to not put all your proverbial eggs in one basket.

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