In today’s post, I am going to cover the question of if you make money holding stocks. There are many ways that come into making money with stocks, but to put in plain terms yes. I will explain more about it below and for those that just wanted a yes or no answer then I have given it to you. If you find this post helpful or informative then consider sending it to a friend that could also benefit from reading. I am also working on putting out another post on how much I made on SLV call options part 2. You can read the first one here.
Holding A Stock
Yes, if you hold one stock for 10 years and it slowly climbs over that time period then you will be cashing out some gains. If you think it’s going to make you rich then that is a different story. The markets are always going up and down (but longterm always up).
To ever consider making a good amount of money in the stock market then you are going to need more than 1 or 5 shares. Plus, It also comes down to the kinds of stocks that you are holding.
Feel like Holding a stock that has a collective investment portfolio? Then consider buying ETF stocks. If you look at the past 5 years of good ETFs, you will see that they always trend up and the gains long term are beneficial.
If you want to invest in stocks that have holdings in real estate then consider buying REITs. Another benefit to these stocks is that their growths are good, but I think that the dividends really good as well.
Consider spreading your money across REITs and ETFs because a diverse portfolio is better than putting your money all on one stock.
Last but not least, dividend stocks will make you passive income for as long as the stock is tradeable.
When Do You Cash Out?
I wrote this post for those that are not thinking about day trading, options trading, and shorting stocks. You found this post because your mind is on the idea of investing for the long haul. That is why I highly suggest keeping investing and holding your money until you reach a later age (basically 50 years old). You want that money in those stocks to reach the most gains as possible. Of course, I know that you might have to cash out early, but in general, aim long term.
But don’t forget about those dividend payments that you will also be collecting over the years. What’s best is reinvesting those dividends back into your portfolio because you will just purchase more stocks and make even more long term.
Do you make money holding stocks? Yes, you do! To gain the most benefit from holding stocks you need to make sure that those investments are for the long term. You should also do more research on what to buy and how to make a diverse portfolio. Investing is not only for the rich and starting early will be the best thing you can do in your 20’s
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Don’t forget to check out other post that I have written below.
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