How Much can you Make from Stocks in a Month (2022 Guide)

Investing in the stock market can be a great way to make money and build wealth over time.

But maybe you’re looking to retire early or need the money for something else and don’t want to wait years to see the returns.

So, how much can you make from stocks in a month?

In this post, I’ll answer this question and much more. Let’s get started!

How Much Can You Make From Stocks in a Month?

The amount of money you can make from stocks in a month will depend on the size of your portfolio, how much risk you’re willing to take, the type of trading you do, and the overall performance of the markets.

For example, if your portfolio is worth $100,000 and you take an average amount of risk, you can assume a 7% annual return on your money.

In this scenario, you would earn around $583 per month from your stocks.

Ultimately, you can make a fortune each month from stocks if you have a large enough portfolio, make the right trades, or get lucky with market conditions.

But, if you’re just starting out, it’s important to temper your expectations and focus on building a solid foundation first.

Can You Make Money Day Trading?

If you’re an experienced investor, you may be able to make a significant income from day trading stocks.

This is because you can take advantage of short-term price movements to buy and sell shares quickly.

While it’s certainly not easy, and it can take decades to master, it is possible to make a good living as a day trader.

Here are a few tips to get you start trading.

Set stop-losses

Stop losses are essential when day trading.

They help you limit your losses on a losing trade and protect your profits on a winning trade.

When setting stop-losses, make sure you place them at a level that makes sense for the stock and your trading strategy.

You don’t want to set them too close or too far away from the current price.

Use limit orders

Another common tactic some traders use when investing in the stock market is limit orders.

These orders allow you to buy or sell shares at a specific price.

For example, let’s say you want to buy shares of Apple for $10 per share.

This means you will only buy the shares if they are available at $10 or less. You can set time frames for your limit orders, too.

This can be helpful if you want to buy or sell shares quickly (like within the day).

Find patterns

When it comes to your trading strategy, it’s all about finding patterns in your winning trades.

It can take some time to find a analyze your trades and find patterns, which is why many traders will look to software to help them.

By doing your own research and backtesting your strategies, you can find which ones work best for your trading style.

How to Make Money with Stocks

If you want to make money in the stock market, here are a few steps to help you get started.

Start with a Small Portfolio

Everyone has to start somewhere.

To invest in the stock market, you don’t need a vast fortune to start growing your money and earning a monthly income.

With platforms like Acorns, you can start with as little as $5, which makes investing viable for just about anyone.

For new investors, it’s a good idea to start with a small portfolio while you get comfortable with the process and learn the ropes.

You can always add more money to your portfolio as you go along.

Take Advantage of Free Money

Many brokerages will offer free money when you open a new account. This can be an easy way to build your monthly income without having to put up any of your own money.

Some great offers you can utilize are through Acorns and M1 Finance.

Acorns offers new investors $10 completely free while M1 Finance offers up to $2,000 in bonus cash when you transfer your investments into an M1 Finance account.

No matter which platform you use, this money can be a great foundation to get your portfolio off the ground so you can start making money.

Start Investing Early

Investing in the stock market works thanks to the power of compound interest.

This means that your money will grow exponentially over time as you reinvest your earnings and let your money grow.

To make the most of compounding, it’s important to start investing early.

The sooner you start, the more time your money will have to grow so you can turn your money into more money.

Make Investing a Routine

If you want to earn a monthly income from stocks, you should make investing a routine to reach your financial goals.

This means setting aside money each month to invest and sticking to your plan.

The best way to do this is to set up a monthly direct deposit from your paycheck into your brokerage account.

This way, you won’t have to think about it each month and you can grow your portfolio over time without having to worry about it.

Avoid Trying to Time the Market

Timing the market can be a difficult task, even for professional investors.

For the average person, it’s best to avoid trying to time the market and instead focus on building a solid portfolio that will last for the long term.

This means investing for years instead of trading stocks frequently.

Invest for the Long-Term

Some investors will make the mistake of making decisions based on short-term changes in the market.

Sometimes they may even make trades within the same day in order to earn a small profit.

The reality is that it is extremely difficult to make money efficiently with this method.

In fact, around 95% of day traders lose money.

If you want to make money investing you should focus on investing for the long-term.

What does long-term mean when it comes to your investments?

In most cases, you’ll want to hold your stocks for at least a few years so you can ride out the ups and downs of the market.

This way, you can weather any storms that come your way and come out ahead in the end.

Know Your Goals

Are you trying to make a full time income by trading stocks? Or are you just looking to make an extra $100 a week?

Knowing your goals is important so you can invest accordingly.

If you’re just trying to make some extra pocket money, you might not need to invest as much as someone who wants to make a full time income.

This doesn’t mean that you can’t make a lot of money with a small investment, it just means that you might not need to put as much money at risk.

On the other hand, if your goal is to make a make a living from stocks, you’ll need to be more aggressive with your investments.

Diversify

Diversity to key to earning long-term gains in the stock market.

This means investing in a variety of different stocks from different industries.

The goal is to have your eggs in different baskets so if one stock goes down, the others might make up for it.

If you invest in individual stocks, it is much easier to make losing trades.

By spreading your money around, you can minimize your risk and maximize your chances for success.

If you’re looking to easily diversify your investments, you can invest in a mutual fund or ETF. These are funds that are made up of a variety of different stocks so you can get exposure to many different companies at once.

Utilize Dividend Stocks

If you want to invest and make money monthly, dividend stocks can be great assets to own.

These stocks are stocks that pay out a portion of their earnings to shareholders at certain times each year.

This can provide you with a consistent income stream that can help you reach your goals.

Not every stock pays a dividend, so you’ll need to do your research to find the right stocks for your portfolio.

Most dividend stocks pay dividends quarterly, so you’ll need to wait a few months in between payments although there are some that pay a monthly income.

However, the stability that dividend stocks provide can be well worth the wait.

Use Other Asset Classes

While the stock market is a great place to grow your money, there are other options many investors utilize.

One of my favorites is real estate.

Real estate is a great place to earn monthly income from your investment and you don’t need a ton of starting capital to get started.

By using a platform like Fundrise you can start investing in real estate with as little as $10. Plus, they’re giving new investors $10 free!

If you want to make extra money outside of the stock market, real estate is a tremendous option.

You can also invest in real estate through the stock market via REITs. These are funds that invest in a variety of different real estate properties.

While you won’t be an owner of the property, you can still earn monthly income from your investment.

Final Thoughts on How Much Can You Make From Stocks in a Month

The amount of money you can make from stocks in a month largely depends on the size of your portfolio and how much risk you’re willing to take.

In some cases, you can make thousands per month from your stocks and investments.

However, if you have a smaller portfolio, you could make $100 a month in dividends.

If you want to make a significant amount of money each month from stocks, you’ll need to have a sizable portfolio and be willing to take on more risk.