Make Money Buying Stocks

How do I make money buying stocks or is it even possible? This is a reasonable question in market conditions like we’ve seen for the past 3 almost 4 years now. With record volatility, political instability, and uncertainty around every corner, investors are finding it increasingly difficult to know how to make money buying stocks… and a few are thinking of giving up… or not getting involved at all.

But before you toss in the towel, take a few moments to look at some real results… all public, all real-time, all available for the past 5 weeks as a part of the 5 stocks for 5% guarantee.

Introducing the 5 for 5 Guarantee

With the rapid growth of online trading, the ease of accessing financial information online as well as through shows like CNBC or BNN, and the increasing frustration of many individual investors with their “professional” advisors, more ordinary people are investing in stocks through their discount broker. Investors with full time jobs during the day are dedicating a few minutes per evening or weekend to review their portfolios and enter their trades. Stay-at-home parents are looking for ways to manage the household finances, not simply through frugal living, but also through investing.

We buy stocks to make money… we don’t make money to lose it buying stocks!
 While these efforts are commendable, not everyone is experiencing positive results. In fact, various studies (and rumours) suggest that between 50% and 95% of individual investors lose money investing in the stock market. The professionals are not exempt either… with many professional mutual fund money managers not even beating the index. Of course, this has led some to become “passive investors,” simply buying index funds and other financial vehicles that try to mimic the market’s performance.

At Invest in the Markets, we’re committed to preserving capital, minimizing risk, and maximizing returns. Whether as an Evening Investor (with 5 minutes an evening) or a Weekend Investor (with 15-30 minutes a weekend), we remain committed to the same overarching objectives. In October, we decided to demonstrate, in real-time, how to make money buying stocks using the Evening Investor Strategy. We called it the 5 for 5 Guarantee… and launched it November 1st. While the “guarantee” portion was initially set up to run for 2 months, the actual trading strategy continues, everyday.

Make Money Buying Stocks using the Evening Investor Strategy

As you may know, November was a horrible month for many investors… up until the last 3 days of the month in which we saw some them erase what were 6%-10% losses among the major markets. As a result, most of the buying opportunities led to small losses throughout November. It was a great example of how to protect capital and minimize risk in difficult market conditions. Now, we’re experiencing the maximizing of returns… with many of the exact same positions taking off, erasing the earlier losses and creating gains.

Extend this approach out several months and you’ll continue to see the success of the Evening Investor Strategy in any market conditions. Quite simply, we make money buying stocks! And the Weekend Investor does well too… committed to the same overarching principles but on a weekly timeframe. Of course, with the weekly timeframe, there is less volatility and a larger perspective… but it also comes with a slightly higher risk level (maximum risk of 5.5% for any position unless a stock gaps down – a highly unusual event for strong fundamental stocks if they are not nearing earnings announcements).

Track How to Make Money Buying Stocks

Our ability to invest in the markets and make money consistently without taking unnecessary risks or “gambling” on a position has been public for the past 5 weeks… and will remain public for the next 3 weeks at the 5 for 5 Tracker page. Despite poor market conditions, we’ve protected capital, minimized risk, and made money. If you’re thinking about investing (or you already do a little investing) in the stock market, follow along in real-time for 5 minutes each evening and see the results first hand, even during these volatile and unpredictable market conditions. You’ll see for yourself… it is possible, in any market conditions, to make money buying stocks.

18 Comments
  1. stocks just kind of make my eyes glaze over…you’re doing a great job of explaining it so that i actually get it!
    Newlyweds on a Budget recently posted..Rich and single or Poor and In Love?My Profile

    • Haha… you’re not alone in that… thanks for the kind words. I hope to make it understandable and perhaps even a little interesting :)

  2. Just bookmarked this for a reference.
    Marissa recently posted..Holiday gift ideas for the boyfriendMy Profile

  3. I have to admit, I am with “Newlyweds”, when I first came to your site, my eyes sort of glazed over as well. I am interested, though, in learning more about stocks and investing, and look forward to perusing your site and further posts!
    Sherrian@KNSFinancial recently posted..Pay For Spray: Firefighters Let Another House Burn Down Over $75My Profile

    • Thanks for your honesty… it’s really encouraging to see that there is some positive impact for non-investors. One of my goals is to provide a reliable source of information to help newbies feel comfortable investing someday!

  4. After a brief foray in 2000, we’ve not bothered with stocks and shares at all, not really having sufficient disposable. But perhaps we’ll revisit this when we have enough to invest. Interesting posts here.

    The uncertainty around the corner, particularly in the Eurozone, is worrying.
    John@MoneyPrinciple recently posted..How did the banks mess it up?My Profile

    • Thanks John… I’m just wondering, out of curiosity, what you feel is “enough to invest?” It’s a topic I’ll be addressing, but I’d love to hear your thoughts in advance of me sharing mine in an upcoming post.

  5. I don’t consider myself a stock newbie but I certainly have much to keep learning. I have invested a little haphazardly in the past so I am looking forward to more advice. Thanks!

    • Welcome Oren… yes, we all have lots to learn from one another. I think if you’ve been a little “haphazard” in your trading int he past, you’ll enjoy the disciplined approach here… where we integrate capital preservation with risk management and maximizing returns! I look forward to your further contributions.

  6. I have read over your 5 for five. How do you pick your five, and what are you doing about trading costs in your self-evaluation?
    Do you pick different market sectors with a purpose, and what are the metrics you think are most important when picking stocks?

    Interesting stuff.
    Dr Dean recently posted..Family Obligations: Hidden But Real!My Profile

    • Dean… great questions. The stocks in the 5 for 5 are selected from my top 10 US stock list. Those are chosen based on fundamentals, diversification, dividends, etc. The process is rather complex, but I’d be happy the explain more if you wish. You may want to see this series… here’s the intro link.

      Because everyone’s trading costs are different, I have not included them, nor have I included dividend payments, etc. My cost are a mere $5 per trade… so very low depending no the position size.

      As for your last question, I’d invite you to look at the series I’ve highlighted or even search “fundamentals” on my site and you’ll get some great articles. Unfortunately, it’s too big of a question to reply to in a comment. However, if you don’t find the answers in these spots, just drop me a line… I’ll make sure to give you what you’re looking for.

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