How to Make $500 a Month in Stocks: 8 Realistic Methods

How to Make $500 a Month in Stocks

Whether you’re an expert stock trader or you’re a beginner, there’s a singular goal; to make money. So, if you’re looking for how to make $500 a month in stocks, this article was cooked up for you. There’s a way to make this happen. 

And of course, even more ways to not make it happen. But the focus of this article is how to make $500 in stocks happen. However, these aren’t “secret” tips. They’re natural, generic, everyday strategies that people don’t really put to heart. 

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Or, don’t know at all. With that said, here are 8 realistic ways to make $500 dollars in a month trading the stock market. 

How to Make $500 a Month in Stocks: 8 Realistic Methods

Learn About Stock Trading 

Believe me, it’s impossible to make even $1 dollar if you know nothing about the stock market. Hence, the first thing you want to do if you’re looking to make $500 a month in stocks is to learn about stock trading. 

Understand how it works and what it is. Perhaps this could be one of the most useful skill sets you’ll acquire in your lifetime. Trading stocks isn’t a lot of work. And there’s no need to rush the process. 

If you’re a complete newbie, which I’m sure you’re not, you’d need to put aside 2 to 3 months just to learn the ropes and get conversant with stock trading environments. To speed things up, you may want to pay for a professional stock trading course just for fundamentals. Nothing deep. 

Learn about the surface things in the stock market. Things like terminologies, trading ethics and possible risk factors. Basically terminologies before practically understanding the actual concepts. 

Find a High Winning Strategy 

Once you’ve had some idea as to how stock trading works, then you can stick to trading with a strategy that has a high win rate. Every trading strategy is different and unique. They’re never the same and there’s no 100% perfect trading strategy on the internet. 

With the help of a demo account, you’d be able to figure out which trading strategy is best for you and which one has a higher win rate. The best practice is to keep learning about top trading strategies from experts as there’ll always be a better trading strategy for every market. 

Your shot should be to learn about these strategies and to which to execute in different markets. Or when trading different stocks. Fascinatingly, every trading strategy has a flaw. Get to learn about the flaws, the nuances, and excel. 

Know Your Markets 

If you want to make $500 a month in stocks, you’ve gotta know the markets you’re good at trading. You don’t just jump onto every market, pull up indicators and strategies, and start trading. Not really. 

You could do that if you’re a pro already. But then, different markets flow with different levels of volatility. Every market isn’t the same. Know the markets you’re good at trading or stick to trading a particular market that you understand really well. 

Another thing to take off from here is to understand the best trading hours for the different markets you’ll be trading. Yes. For some markets, the best movement happens during the evening period. 

From 4pm. 

The morning season for some other markets has the best price movements. As you keep trading and learning, you’ll understand this and what markets to trade, and when best to open up your trading interface. 

Observe Fundamental Analysis 

Fundamental analysis is basically company news. If you understand what a company is up to and where they’re headed, then you’ll most likely be able to tell where the price of their stock is headed. 

These changes may not reflect instantly on the stock market, but they eventually will. If a company goes bankrupt, expect the stock to crash even if it’s really bullish at the minute of the news. It’ll plummet eventually. 

Maybe a little later, but it’ll happen. If a company partners with some other company and they’re seeing spikes in performance and revenue, expect their stock to boom in price. Fundamental analysis is one factor you should fabricate into your entire trading strategy. 

It’s effective. Maybe more effective than technical analysis. And you can win really big with decisions coming from a detailed fundamental analysis. 

Master Technical Analysis

With technical analysis in your corner, you’d be a trading master in stock matters and making an extra $500 a month wouldn’t be a biggie. Technical analysis is technical. It means you’d get conversant with trend lines, indicators, support and resistance mapping, and a lot of more on-the-chart analysis and technicalities. 

You’re able to trade quickly and maybe in the long-term with technical analysis. And sometimes, you’re able to map or trace projected market trajectory with updates from fundamental analysis. Technical analysis is both critical and useful. 

And with expertise in technical analysis alone, you can hardly lose a trade or get into a wrong trade. Hardcore traders are expert technical analysts. And if you must emerge a successful stock trader, this is one skill to acquire. 

Take Risk Management Seriously

If you want to make $500 a month in stocks, come to terms with the reality of market risks. And learn how to minimize or manage them. There’s a lot of risks. 

If there weren’t, then you’d be making money from every single trade you initiate. Generally, everything has some level of risk. Everything that can be classified as a business or a venture. There’s risks involved. 

And in the stock trading sphere, there are some really effective measures to tackle risks. If you trade without the need to minimize risks, then you’re up to lose an extra $500 dollars instead of making it. 

The point is, to not lose money and to make $500 a month in stocks, you’d need to really prioritize risk management. It’s necessary, and you only get to become a better stock trader with this taken care of. 

Avoid the Fear of Missing Out

Denoted as FOMO for shorts. The fear of missing out is a syndrome traders play victim to whenever they rush into a trade or a couple of trades. The end result is followed by panic and usually brutal. Trades with the potential to make you an overnight billionaire will come and go. They’ll come again, and again. 

And again. 

So, there’s really no need to rush into any trade. You’ll make it happen with several other trades. With your cup of coffee, carefully analyze every trade before getting into it. 

Even if you’re trading with signals, spare 1 to 5 minutes to analyze a trade before executing it; even if you’re getting the trading signals from the best trading group on the planet. 

And this is because no single group of people control the stock market. They speculate and draw up signals. It’s your call to scrutinize before executing the signals. However, the point it; don’t rush. Don’t panic. 

The great master oogway will stress about inner peace here. 

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Trade with a Larger Liquidity 

If you want to learn how to make $500 a month in the stock market, then you must learn this; trading with a large liquidity can quickly get you to $500/month. 

And much more than that. The more money you trade with, the more profit you’re more likely to make. So, you want to trade with at least $200 dollars or have $200 dollars in your trading account so that you can make a profit of $20 dollars or 10% off your trades. 

You’ll only need to get 25 trades right to make $500/month. Alternatively, you can trade with a fatter liquidity like $1,000 dollars so that it’s really easy to make $500 dollars from a few trades. Like 10 winning trades. 

The variables are enormous, and the profit you make in the stock market will vary largely. Some trades can give you 3%, 9%, 25% and others will plunge your portfolio. But at the end of the day, you’re making more money with even more money in your trading account. 

Ultimately, with $10,000 dollars up in your stock trading account, making $500/month wouldn’t be an issue. You could be making this in a single day. Surprisingly with one trade. 

How to Make $500 a Month in Stocks: 8 Realistic Methods – Summary 

$500 dollars a month from stock trading is realistic if you’re trading with at least $1,000 dollars. Or even $200 dollars. You can also make $500 dollars a month with stock trading if you have a stock trading account of $100 dollars, but it’ll be challenging. 

Some real ways to generate $500 in profit, pure profit, in a month while trading the stock market include learning about stock trading, finding a strategy with a high win rate, mastering technical analysis, avoiding the fear of missing out on profitable trading opportunities, observing market news/fundamental analysis, capitalizing on risk management, and knowing your markets. 

And the more money you trade with, the more profit you’re likely to make. Mostly. 

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