It’s the number one thing people want to know when they first become interested in trading – how much can you make from stocks in a month? To know how much YOU could make, you need to know, how much are you willing or able to invest. Do you have an appetite for risk? What is the market doing? Are you using the right trading tools and services, and are you investing in the right kinds of stocks? There is no definitive answer and it completely depends on you as an investor and the choices that you make. Let’s explore this further.
Making Money From Stocks
As there are so many variables that control how much cash you can bring home (or lose) from stock trading,, there really is no definitive answer to this question. Instead, what I can focus on in this article is sharing some of the tips that I’ve learned about trading stocks over the last ten years, and show you some of the trading tools that have enabled me to profit the most from stocks and minimise my losses.
You can then choose to put my experience together with your own appetite for risk, cash investment and the time you have available to learn which platforms you want to use. Only then can you find out how much you can really make from stocks, and at the end of the day, that is all you really need to know.
Via Trade Wise, I aim to test and review trading platforms and services in order to be able to recommend the most profitable and useful tools for investors like you to use. This means that even novice traders can start buying and selling stocks in no time – safe in the knowledge that the trading resources you’re using have been put to the test and honestly reviewed.
Read on for my tips on how you can make money from stock trading, including choosing the right trading plan and platforms for you, minimising losses and how to take control of your earning potential from the comfort of your own home – a great way to get through the rest of lockdown!
Investing In Stocks
Investing in the stock market is an increasingly popular way to generate supplementary income. This can be alongside regular employment or perhaps a retirement income for others. With interest rates likely to remain low for the foreseeable future, there are lots of new investors turning to the stock market as a way to make their cash go further and enjoy the lifestyle they want to lead.
It’s common for new investors to want to know what they can expect to make trading but as I said above this is very hard to quantify as there are so many variables involved. Some people can earn thousands, and some only lose money, but ultimately, if you’re reading this then you will want to know that there IS the potential to be able to earn a steady, monthly income from stocks.
What Do I Need To Know?
First things first, there are certain fundamental factors that will always impact how much you can make from stocks including;
- Trading capital. The amount you can make from stock trading depends on your trading capital. More trading capital means you can take a bigger position per trade. This means if things go well, you make more money than you would have if you’d invested less to start with.
- Trading Strategy. Your trading strategy is crucial in determining how much you can potentially make, so it must be a profitable one.
- Your trading skills. By this I mean, your trading psychology and ability to react to changing markets in line with your trading strategy, rather than with your emotions. This also encompasses your risk and money management skills too.
- Leverage. If you have more leverage, you can take trading positions much larger than your own capital, thus increasing the amount you stand to make if things go well.
How To Get A Monthly Income From Stocks
Although I can’t tell you how much you can make a month from stocks, I can give you an idea of how it is possible to get a monthly income from trading stocks. Hint – it’s more than just ‘buy low, sell high’.
- Learn how to control your emotions and learn how to trade,
- Become proficient in choosing the right traders to follow when copy trading
- Invest long term
- Find stocks that pay high dividends and monthly income
Once you start to generate income, you can choose to cash in and spend or re-invest into more stocks to increase the diversity of your portfolio.
Tame Your Emotions
Being able to disconnect yourself from your emotional attachment to your cold, hard cash is one of the biggest keys to successful investing. If you are likely to make knee jerk reactions in the face of loss or gain, then you really need to focus on managing your trading psychology. Any trades you make should be made using a tried and tested trading strategy but if you can’t stick to this or don’t have the time to invest in learning how to trade profitably yourself, then you may find that copy trading is a good route for you.
Is Copy Trading For You?
If learning how to trade and keeping your emotions in check when it comes to monitoring financial highs and lows sounds like an impossible dream, the copy trading could be for you.
All you have to do when copy trading is to choose an experienced investor to follow whose goals align with yours and make sure that there is enough money in your trading account. When starting out, copy trading can be a brilliant way to bring a trading strategy to life. By choosing to follow an experienced trader’s movements via a trading signal, you can reap the rewards of their knowledge of the stock market whilst reducing the steep learning curve involved in making your own trades.
As you would expect, there are plenty of copy trading platforms available, but only a few get my vote. eTora, Zulutrade, Yieldnodes and Gorilla Trades all have lots of positive points depending on how involved you want to be in making trades. Some allow you to follow more than one trader in one account, some completely automate the whole trading process, and others send out trade signals for you to action yourself.
Take a look at my top three copy trading services to see which ones are worth investing your money into.
Invest Long Term
By choosing companies to invest in long term, you can ride out any month to month volatility in the market and aim to enjoy long-term profitable gains.When choosing companies to invest in, or traders to copy, always do you research. Look at the company’s financials and make sure that the investors you follow are aligned with your investment goals.
Find Good Dividend Payments
Dividends are payments made to company shareholders from the profits of a company after Corporation Tax. Not all stocks pay dividends but for those that do, investors can expect to receive payments between the point of buying and selling their shares. The cash is usually paid on a quarterly or annual basis but if you do your homework, or build a portfolio of stocks that pay in overlapping quarters, you can find stocks that generate monthly income.
To see how your dividend payments can quickly add up, I share the example of a publicly-traded company offering 3% dividend stocks every quarter. If you invested $2,000, you would earn $60 quarterly as a dividend for that investment. Annually, that would net you around $240, which when replicated across a larger portfolio, will soon add up.
Find Out More: Stocks to buy with high dividend payment
Can You Make Monthly Income From Stocks?
Investors that put their money directly into stocks can build a monthly income by investing in dividend paying stocks. By assembling a portfolio of stocks that pay in overlapping quarters, you can build a monthly income. If you want to take the hassle out of knowing which stocks to pick, tools like Gorilla Trades can systematically present you with the best daily stock picks so you always know the best stocks to invest in.
Remember though, that no matter how good your stock is, you cannot control what the overall market does. If the market drops, then it’s likely that your portfolio will decrease in value too.
Find Out More: Pick the best stocks with gorilla trades stock picks
Although I can’t give you a specific figure on how much you can make from stocks a month, I hope this page has given you some simple, actionable tips to help you be as profitable as possible with the investments that you do choose to make.
As a reminder:
- Learn how to identify stocks with high dividend payments
- Have a profitable trading strategy
- Build a portfolio with overlapping dividend payments to enjoy monthly income
- Utilise copy trading platforms to find experienced traders that align with your investment goals
Ultimately, if you can combine realistic expectations, have enough capital to invest long term, and use great trading tools available to you, you too can enjoy a good monthly income from stocks.
Although I have used all of the trading tools and services that I recommend on this site, they do not in any way guarantee success. Investing is unpredictable and you can always stand to lose more than you make and monthly earning will fluctuate. As such, you should never invest money that you can’t afford to lose.
If you’re looking for regular updates on what major copy trading platforms are doing, what works well and what doesn’t work so well, then please do subscribe to my mailing list. I keep my subscribers up to date on everything copy trading, EAs and bots as my personal experience of using the platforms I invest in evolves.
I am Jon Platts and via Trade Wise, I hope that by sharing my experience and reviews with investors like you that you can easily find trusted platforms where high returns can be achieved without making the same costly mistakes that I did when starting out!