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Can you make a living off stocks?
Say I would like to make $50k a year, $5k profit a month as a novice. How much would I need to invest? I see ridiculous posts on Reddit seeing people make $200k a lucky day and it doesn't make sense.
Thank you so much for the responses. You guys rock!
- Nuff SedLv 72 months agoFavorite Answer
If you have the necessary one or two million dollars to invest, you would be much better off having a professional financial advisor take care of it for you, to get the best chance of having a long-term return to cover your expenses, let alone increase your capital.
I know many people who invested 20 years ago and haven't worked another day, since their annual income from investments (stocks, bonds, etc) created more than enough income for their chosen lifestyle (a couple of homes, several cars, maybe a private jet).
- Anonymous2 months ago
If you mean by investing, then it's possible. You can expect to earn a consistent 5-10% return on average and maybe as much as 30% if you know what you're doing. But to make 50k that means you'd need around a million invested.
If you mean by trading then it's unlikely. I don't doubt that there are some who can make a lot of money in the short term trading but I've never seen anyone who could do it indefinitely
- ?Lv 52 months ago
The only people making money like this are market makers :-))
To end up with $1 Million this time next year, by day trading, start with $2 Million today :-))
Market makers are the middle agents who buy and sell, to mugs, sorry wizzards who make $200k on a lucky day, and lose $205k on two other days.
I had a friend who had made his pile in property, he started day trading, one month he made £25,000 the following month he lost £25,050?
If you want to make money with stocks and shares, read 'The Warren Buffet way, by Robert Hagstrom.
Then read 'Rich Dad, Poor Dad' Robert Kiyosaki, followed by The Millionaire next door and Richest man in Babylon.
They all sing from the same hymn sheet, making money takes a lot of homework, and requires hard work, if of the cerebral type.
- Ron AkiaLv 72 months ago
Quite a few people used to earn a living as day traders until the market started trending downward. They all pretty well bailed as they lost money. Day trading almost died. Now, with the market thriving quite a few are doing it again and have made money over the past couple of years. It works in a rising market and our current market is due for a turn around which will eliminate day trading once again.
Yes you can make a living trading stocks. But it is difficult and usually requires years of hard work, dedication and experience. The way you make a living is by finding an edge in the market. This gives you the opportunity to develop a profitable strategy.Source(s): https://iqos-heets.ae/
- StephenWeinsteinLv 72 months ago
Typical returns are about 10% in average year. So you'd need about half a million dollars.
The old saying is that it takes money to make money. Money along with smarts and luck are what will get you there. Im not sure of what strategy will get you what you want, but I wouldnt be overly confident that you can do it unless you have 5 or more years of experience with stocks, feel good about your tactics and you have at least 200k in your trading account.
- 2 months ago
As a novice you will never live off stock but you may well lose at least half your money. People bragging about making big bucks are full of **** liars. That said, there are tens of millions of people who live just fine off of their investments.
- 2 months ago
Just be aware that for every person who thinks it is a good idea to buy a stock at a certain price there is a person who thinks it is a good idea to sell that stock at the same price. Also be aware that the P/E ratio is now about 23 which is historically very high.
- megalomaniacLv 72 months ago
Some people make a killing. Some lose everything. It's really just a fancy form of gambling. Of course it's human nature to brag about the wins but not talk about the losses.