How Much Can You Make From Stocks In A Month?

You may want to plan out an investment journey. It can begin with the question “How much can you make from stocks in a month?” Usually the answer will depend on how much initial investment one has made into stocks.

The more you begin with, the better return. Reality though is not fully dependent on where you begin from. It is possible to get big returns with a small upfront investment, though less likely.

Odds and probability play a role here.

To be honest here, if you are from the poor or middle class, try to find another source of income. Stock market investment growth does take time.

You don’t want to go broke having to relying on flukey odds, circumstantial chance, favorable conditions and other factors.

Trading can be real tough. A private investigator or freelance writer can go weeks or months with no income earned. So can a stock market trader. Although luck and chance can help in these fields, odds can be tilted according to how much you know, the hours of study, and the preparation in advance of the work.

Have some backup plan. Stock trading can be really difficult. Not much money? Don’t rely on stock investing. The reader can do as desired, but this is good advice to avoid going broke.

Now that this reality check is finished, let’s go over how much income can be received monthly from the stock market.

How Much Money Do You Have?

Unlike the casino, there may not be tossing out someone who wins too much. The income potential is not necessarily capped in the market. Some companies have the potential to go sky high. If anything, finding sure winners is not easy. Magic and good luck can only go so far. Let’s consider a real foundation for the time being.

What is the money you have on hand to begin with? This initial self-question is the basic determination of how much can be earned monthly from the stock market.

Let’s assume you the reader have $10,000 to begin. And let’s begin with a very basic method of investing.

Dividends. Buy stocks that pay them. These are simply extra earnings or profitable cash the companies have to give shareholders. And many companies are committed to paying them out.

Usually these get paid out quarterly. If you invest the full amount in one or two stocks that pay 8% dividend yields, then that’s 8% on the money yearly. In this case the result would be $800. Not enough to earn a living. But perhaps 800 dollars divided by 12 months, or about $65, is enough to pay an electric or phone bill monthly. That’s a beginning.

The dividend approach requires a great sum to live purely off these yields alone. Even $100k equals just $8,000 yearly with 8% (which is a high dividend percentage anyway). A $500k investment parked in the market could bring back $40,000 yearly which could mean a decent standard of living. More likely, a lower 5% yield may be found more easily, which would mean $25,000 yearly here.

There are other methods. If you don’t want to move in this slow approach, there are other ways to gain monthly. But dividends are solid, lower in risk. Other ways can be considered moderate to high risk.

Here is the truth. It is nearly impossible (or even more difficult) to beat the market with consistency. It’s not what an average speculator wants to hear. But the truth remains! And it’s important to recognize.

The S&P 500 is pro level stuff. It returns maybe 8-10% annually at it’s best average. This is serious stuff to recognize here.

Learning is required. If you want to brave swing trading, day trading, option trading or other sophisticated stock avenues, it is best to learn before placing too much money at risk.

One can feel confident and ready to pounce the market with authority, to get gains and gains again, to get the feeling of being unstoppable. Then the tragic occurrence takes place and 1/2 of the entire account vanishes in under a week. It can happen even after working many hours over several weeks or even longer.

Avoid much monetary loss. The simple way to do this is with discipline. Be controlled enough to understand risk tolerance. Maybe 2% is an ideal risk zone. Bring $1,000 to swing trading for example. Lose $20 or 2% and it’s not the world. Seek to gain more than 2% with a 3-4% gain and then trade away the stock. If the account gets lower from many losses, the 2% also gets a lower number figure involved. In this manner, the initial $1,000 investment is preserved.

By the way, swing trading is just buying a stock and selling the same during the same week, or possibly within a month or two. It just means holding the stock a while until hopefully profitable. Day trading is basically the same, usually buying and selling on the same day.

Separate Your Investment Methods

This may be the most important part. Have a stable investment within an IRA (individual retirement account) or some other overall fund. Just let it grow over time. Don’t worry about making monthly returns.

Have another section of money. This one can be used for speculation, day trading, swing trading, options trading, whatever.

The percentage to decide for each section is up to the individual of course. Is a stable fund needed? How much risk is one okay with? What if the entire speculative investing fund disappears? Self questioning and discerning should be done of course.

If you want a monthly part-time or full-time income from the stock market, chances are that chance itself will probably be involved. These results are possible but understand not to quickly toss away your day job if you’re fortunate enough to have one. Let positive results grow past the point of needing to work. After that, wait it out more if possible. Wild swings in the market can and do happen.

Finally, self-control. Have a calculated approach, not an emotional one. Think Spock of the Star Trek series. Making emotional and stupid decisions with money can be very harmful. Understand that most individuals lose in the market when they attempt day trading or stock market trading. And so, it’s okay to lose.

Don’t Rely Solely On Trading

For the average individual, the correct and superb advice here is not to depend on trading within the stock market.

Instead, gamble the money away at the local roulette wheel or blackjack table. This brings the same kind of money losses, while having the advantage of doing it entirely faster. At least you can save your time.

Bring money you can afford to lose. That’s the right beginning mindset. With study, work, and maybe luck, this thing can grow into something substantial. Otherwise, pick some other occupation in life to complement trading with.

If you can’t afford to lose, debt happens. That’s why it is important to assess where you’re at and take steps to mitigate the risk of too much debt.

This writing began with the question, “How much can you make from stocks in a month?” and transitioned into a down-to-Earth process that the reader can benefit from. Number one is to have money invested in a retirement or other lasting fund. Number two is to then take what money is okay to be lost entirely, moving that into a speculative investing strategy.

It is important to be grounded before risking all kinds of money. Stock dividend investing is a modern safe way of monthly or quarterly income investing. That may be a great way to begin for a safer approach. Day or swing trading are much more risky. Maybe limit this to only 10% of your total stock money. This is up to you the individual. Thanks for reading.