{"id":1540,"date":"2021-07-19T04:13:44","date_gmt":"2021-07-19T08:13:44","guid":{"rendered":"https:\/\/smarterrabbit.com\/blog\/?p=1540"},"modified":"2021-07-19T10:22:00","modified_gmt":"2021-07-19T14:22:00","slug":"how-do-you-make-money-from-stocks-and-shares","status":"publish","type":"post","link":"https:\/\/smarterrabbit.com\/blog\/how-do-you-make-money-from-stocks-and-shares\/","title":{"rendered":"How Do You Make Money From Stocks And Shares?"},"content":{"rendered":"<p>How do you make money from stocks and shares? We will answer this and more in this post. On average, investors make around 10% from the stock market each year. This is much higher than you will earn with a savings account or even with government bonds. The problem is that only a few savvy investors make this 10%.<\/p>\n<p>A lot of people see purchasing shares as a way to get rich quick and this is certainly not the case. There are other methods that you can use to make a quick return on your investment that are much better than the stock market. You need to know what you are doing when you are investing in stocks and shares and be prepared to invest for the long-term.<\/p>\n<p><img width=\"541\" height=\"406\" data-public-id=\"2-15\/2-15.jpg\" loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-post-1540 wp-image-1544\" src=\"https:\/\/res.cloudinary.com\/dtzcb9wrz\/images\/w_541,h_406,c_scale\/f_auto,q_auto\/v1626704033\/2-15\/2-15.jpg?_i=AA\" alt=\"\" data-format=\"jpg\" data-transformations=\"f_auto,q_auto\" data-version=\"1626704033\" data-seo=\"1\" srcset=\"https:\/\/res.cloudinary.com\/dtzcb9wrz\/images\/f_auto,q_auto\/v1626704033\/2-15\/2-15.jpg?_i=AA 497w, https:\/\/res.cloudinary.com\/dtzcb9wrz\/images\/w_300,h_225,c_scale\/f_auto,q_auto\/v1626704033\/2-15\/2-15.jpg?_i=AA 300w, https:\/\/res.cloudinary.com\/dtzcb9wrz\/images\/w_50,h_38,c_scale\/f_auto,q_auto\/v1626704033\/2-15\/2-15.jpg?_i=AA 50w\" sizes=\"auto, (max-width: 541px) 100vw, 541px\" \/><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 ez-toc-wrap-right counter-hierarchy ez-toc-counter ez-toc-white ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Contents:<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d43d177d332\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d43d177d332\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/smarterrabbit.com\/blog\/how-do-you-make-money-from-stocks-and-shares\/#How_do_you_Make_Money_from_Stocks_and_Shares\" >How do you Make Money from Stocks and Shares?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/smarterrabbit.com\/blog\/how-do-you-make-money-from-stocks-and-shares\/#Stay_Invested_for_the_Long-Term\" >Stay Invested for the Long-Term<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/smarterrabbit.com\/blog\/how-do-you-make-money-from-stocks-and-shares\/#What_Stocks_do_you_Invest_in\" >What Stocks do you Invest in?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/smarterrabbit.com\/blog\/how-do-you-make-money-from-stocks-and-shares\/#Small_Amounts_leading_to_Larger_Amounts\" >Small Amounts leading to Larger Amounts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/smarterrabbit.com\/blog\/how-do-you-make-money-from-stocks-and-shares\/#The_Stock_Market_can_be_Risky\" >The Stock Market can be Risky<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/smarterrabbit.com\/blog\/how-do-you-make-money-from-stocks-and-shares\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"How_do_you_Make_Money_from_Stocks_and_Shares\"><\/span>How do you Make Money from Stocks and Shares?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>At the end of the day, there are only two ways that you can make money from stocks and shares:<\/p>\n<ul>\n<li>Dividends from the shares you own<\/li>\n<li>Capital appreciation of your shares<\/li>\n<\/ul>\n<p>When you purchase shares, you may receive a dividend from them every 3 months, 6 months or annually. The amount of the dividend is based on the number of shares that you hold in the stock. If the price of the shares goes up then you will benefit from capital appreciation. If you sell your shares at the right time then you will make a profit on your original investment.<\/p>\n<p><img width=\"540\" height=\"358\" data-public-id=\"3-11\/3-11.jpg\" loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-post-1540 wp-image-1545\" src=\"https:\/\/res.cloudinary.com\/dtzcb9wrz\/images\/w_540,h_358,c_scale\/f_auto,q_auto\/v1626704037\/3-11\/3-11.jpg?_i=AA\" alt=\"\" data-format=\"jpg\" data-transformations=\"f_auto,q_auto\" data-version=\"1626704037\" data-seo=\"1\" srcset=\"https:\/\/res.cloudinary.com\/dtzcb9wrz\/images\/f_auto,q_auto\/v1626704037\/3-11\/3-11.jpg?_i=AA 502w, https:\/\/res.cloudinary.com\/dtzcb9wrz\/images\/w_300,h_199,c_scale\/f_auto,q_auto\/v1626704037\/3-11\/3-11.jpg?_i=AA 300w, https:\/\/res.cloudinary.com\/dtzcb9wrz\/images\/w_310,h_205,c_scale\/f_auto,q_auto\/v1626704037\/3-11\/3-11.jpg?_i=AA 310w, https:\/\/res.cloudinary.com\/dtzcb9wrz\/images\/w_50,h_33,c_scale\/f_auto,q_auto\/v1626704037\/3-11\/3-11.jpg?_i=AA 50w\" sizes=\"auto, (max-width: 540px) 100vw, 540px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Stay_Invested_for_the_Long-Term\"><\/span>Stay Invested for the Long-Term<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>It is a mistake to see investing in shares as a short-term thing. You need to start early and consider your investment in shares as a way to build wealth for the long-term. There is no need for you to make a lot of trades. Some people are obsessed with share prices and will stare at their computer screen for hours on end to watch the market change.<\/p>\n<p>When you invest for the long-term you should make more money in dividends and make gains from capital appreciation if you have invested in the right stocks. You need to follow a \u201cbuy and hold\u201d strategy. One of the most successful investors in stocks and shares in the world is <a href=\"https:\/\/en.wikipedia.org\/wiki\/Warren_Buffett\" target=\"_blank\" rel=\"noopener\">Warren Buffet<\/a>. If buy and hold is the right thing for him it is the right thing for you.<\/p>\n<p><img width=\"541\" height=\"395\" loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-post-1540 wp-image-1546\" src=\"data:image\/svg+xml;base64,PHN2ZyB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciIHdpZHRoPSI1NDEiIGhlaWdodD0iMzk1Ij48cmVjdCB3aWR0aD0iMTAwJSIgaGVpZ2h0PSIxMDAlIj48YW5pbWF0ZSBhdHRyaWJ1dGVOYW1lPSJmaWxsIiB2YWx1ZXM9InJnYmEoMTUzLDE1MywxNTMsMC41KTtyZ2JhKDE1MywxNTMsMTUzLDAuMSk7cmdiYSgxNTMsMTUzLDE1MywwLjUpIiBkdXI9IjJzIiByZXBlYXRDb3VudD0iaW5kZWZpbml0ZSIgLz48L3JlY3Q+PC9zdmc+\" alt=\"\" data-public-id=\"4-9\/4-9.jpg\" data-format=\"jpg\" data-transformations=\"f_auto,q_auto\" data-version=\"1626704042\" data-seo=\"1\" data-size=\"541 395\" data-srcset=\"https:\/\/res.cloudinary.com\/dtzcb9wrz\/images\/w_300,h_219,c_scale\/f_auto,q_auto\/v1626704042\/4-9\/4-9.jpg?_i=AA 300w, https:\/\/res.cloudinary.com\/dtzcb9wrz\/images\/w_50,h_37,c_scale\/f_auto,q_auto\/v1626704042\/4-9\/4-9.jpg?_i=AA 50w, https:\/\/res.cloudinary.com\/dtzcb9wrz\/images\/f_auto,q_auto\/v1626704042\/4-9\/4-9.jpg?_i=AA 493w\" data-sizes=\"auto, (max-width: 541px) 100vw, 541px\" data-delivery=\"upload\" onload=\";window.CLDBind?CLDBind(this):null;\" data-cloudinary=\"lazy\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Stocks_do_you_Invest_in\"><\/span>What Stocks do you Invest in?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>You will be investing in common stocks so you need to concentrate on a \u201ctotal return\u201d over the lifetime of your investments. When you make the right decision about this you can build a very valuable portfolio that will set you up for life. Here is what you should look for when choosing the right stocks:<\/p>\n<ul>\n<li>Identify those companies that are well-run and have a strong financial position. Check out their history as far as the practices with shareholders are concerned<\/li>\n<li>Once you have decided on a stock to invest in, hold the shares that you purchase for at least 5 years<\/li>\n<\/ul>\n<p>When you choose the right stocks, you should find that the value of your shares will increase as time goes on. There are plenty of examples where this has worked for ordinary people that have started investing with small amounts of money.<\/p>\n<p><img width=\"550\" height=\"365\" loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-post-1540 wp-image-1547\" src=\"data:image\/svg+xml;base64,PHN2ZyB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciIHdpZHRoPSI1NTAiIGhlaWdodD0iMzY1Ij48cmVjdCB3aWR0aD0iMTAwJSIgaGVpZ2h0PSIxMDAlIj48YW5pbWF0ZSBhdHRyaWJ1dGVOYW1lPSJmaWxsIiB2YWx1ZXM9InJnYmEoMTUzLDE1MywxNTMsMC41KTtyZ2JhKDE1MywxNTMsMTUzLDAuMSk7cmdiYSgxNTMsMTUzLDE1MywwLjUpIiBkdXI9IjJzIiByZXBlYXRDb3VudD0iaW5kZWZpbml0ZSIgLz48L3JlY3Q+PC9zdmc+\" alt=\"\" data-public-id=\"5-2\/5-2.jpg\" data-format=\"jpg\" data-transformations=\"f_auto,q_auto\" data-version=\"1626704049\" data-seo=\"1\" data-size=\"550 365\" data-srcset=\"https:\/\/res.cloudinary.com\/dtzcb9wrz\/images\/w_300,h_199,c_scale\/f_auto,q_auto\/v1626704049\/5-2\/5-2.jpg?_i=AA 300w, https:\/\/res.cloudinary.com\/dtzcb9wrz\/images\/w_310,h_205,c_scale\/f_auto,q_auto\/v1626704049\/5-2\/5-2.jpg?_i=AA 310w, https:\/\/res.cloudinary.com\/dtzcb9wrz\/images\/w_50,h_33,c_scale\/f_auto,q_auto\/v1626704049\/5-2\/5-2.jpg?_i=AA 50w, https:\/\/res.cloudinary.com\/dtzcb9wrz\/images\/f_auto,q_auto\/v1626704049\/5-2\/5-2.jpg?_i=AA 506w\" data-sizes=\"auto, (max-width: 550px) 100vw, 550px\" data-delivery=\"upload\" onload=\";window.CLDBind?CLDBind(this):null;\" data-cloudinary=\"lazy\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Small_Amounts_leading_to_Larger_Amounts\"><\/span>Small Amounts leading to Larger Amounts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There are plenty of stories of ordinary people that started investing in shares with small amounts and built a very valuable portfolio over the years. A lady called Anne Scheiber started to invest with small amounts of money and 50 years later she had a portfolio worth around $22 million.<\/p>\n<p>Another savvy investor, Grace Groner, invested just $60 in 1935 (about $1800 in today\u2019s money) when she first started with stocks and shares. Her portfolio is worth around $7 million today. Both of these examples prove that it is possible to get started with a small amount of money and turn this into a fortune.<\/p>\n<p>A lot of people think that they can beat the stock market by always buying and selling shares. This may work occasionally if you have enough capital to invest, but it is not a sound long-term strategy. It is much better to seek out well run and financed companies and buy their shares and hold them for a long time.<\/p>\n<p><img width=\"550\" height=\"365\" loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-post-1540 wp-image-1548\" src=\"data:image\/svg+xml;base64,PHN2ZyB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciIHdpZHRoPSI1NTAiIGhlaWdodD0iMzY1Ij48cmVjdCB3aWR0aD0iMTAwJSIgaGVpZ2h0PSIxMDAlIj48YW5pbWF0ZSBhdHRyaWJ1dGVOYW1lPSJmaWxsIiB2YWx1ZXM9InJnYmEoMTUzLDE1MywxNTMsMC41KTtyZ2JhKDE1MywxNTMsMTUzLDAuMSk7cmdiYSgxNTMsMTUzLDE1MywwLjUpIiBkdXI9IjJzIiByZXBlYXRDb3VudD0iaW5kZWZpbml0ZSIgLz48L3JlY3Q+PC9zdmc+\" alt=\"\" data-public-id=\"6-1\/6-1.jpg\" data-crop=\"1.51\" data-format=\"jpg\" data-transformations=\"f_auto,q_auto\" data-version=\"1626704053\" data-seo=\"1\" data-size=\"550 365\" data-srcset=\"https:\/\/res.cloudinary.com\/dtzcb9wrz\/images\/w_300,h_199,c_scale\/f_auto,q_auto\/v1626704053\/6-1\/6-1.jpg?_i=AA 300w, https:\/\/res.cloudinary.com\/dtzcb9wrz\/images\/w_310,h_205,c_scale\/f_auto,q_auto\/v1626704053\/6-1\/6-1.jpg?_i=AA 310w, https:\/\/res.cloudinary.com\/dtzcb9wrz\/images\/w_50,h_33,c_scale\/f_auto,q_auto\/v1626704053\/6-1\/6-1.jpg?_i=AA 50w, https:\/\/res.cloudinary.com\/dtzcb9wrz\/images\/f_auto,q_auto\/v1626704053\/6-1\/6-1.jpg?_i=AA 504w\" data-sizes=\"auto, (max-width: 550px) 100vw, 550px\" data-delivery=\"upload\" onload=\";window.CLDBind?CLDBind(this):null;\" data-cloudinary=\"lazy\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Stock_Market_can_be_Risky\"><\/span>The Stock Market can be Risky<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If you are serious about making money from stocks and shares then you need to accept that the value of your shares can go down as well as up. When you choose the right companies to invest in, any share price drops should just be a temporary issue. In the long run you will see the value of your shares increase.<\/p>\n<p>Sometimes there are market bubbles and you may have the chance to make a large profit on your shares because the price has risen significantly. There have been many cases where share prices do not accurately reflect what a company is really worth.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>We have answered the question \u201chow do you make money from stocks and shares?\u201d It is now time for you to decide how much you are willing to invest, and then do your homework to find the best possible stocks that will provide a good return on your investment over the long-term.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How do you make money from stocks and shares? We will answer this and more in this post. On average, investors make around 10% from the stock market each year. This is much higher than you will earn with a savings account or even with government bonds. The problem is that only a few savvy &hellip;<\/p>\n","protected":false},"author":4,"featured_media":1543,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_cloudinary_featured_overwrite":false,"footnotes":""},"categories":[13],"tags":[],"class_list":["post-1540","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-make-money"],"wppr_data":{"cwp_meta_box_check":"No","cwp_rev_product_name":"Product Name","cwp_rev_product_image":"","cwp_image_link":"link","wppr_links":{"Official Website Here":"https:\/\/smarterrabbit.com"},"wppr_rating":"93.25","wppr_options":[{"name":"Easy To Use","value":94},{"name":"Support Level","value":86},{"name":"Features","value":96},{"name":"Quality Content","value":97}],"wppr_review_type":"Product"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How Do You Make Money From Stocks And Shares? - Smarter Rabbit Blog!<\/title>\n<meta name=\"description\" content=\"How do you make money from stocks and shares? 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