How to make money on the stock market? Tricks and strategies for making money

In recent months, we’ve seen an almost irrational rally on the Nasdaq and S&P 500, which reached new records, buoyed by expectations of Fed cuts and hype about artificial intelligence. But in the end, who really made the money? And above all: how do you make money in the stock market without falling into the usual beginner’s traps?

Why not, it’s not a matter of luck. Making money in the stock market requires a clear head, the right context, and a fair amount of attention and risk assessment.

In this guide, you can find 8 practical strategies to try it for real, hopefully without getting hurt. Strategies that work and common sense, without illusions.

1) Start with a basic principle: you’re not smarter than the market

If you think you can "beat the stock market" by looking at two charts on TikTok, you’re already in trouble. The market absorbs all available information at any given moment, including information you don’t yet know. Even Warren Buffett, who has made a lot of money in the stock market, has been saying it for years: a simple, solid strategy is better than chasing the idea of hitting the bottom or selling at the top.
And if you find yourself faced with yet another "unmissable" opportunity, ask yourself an honest question: am I buying because I truly understand what I’m doing or just because I’m afraid of being left out?

2) Choose between two paths (and don’t look for shortcuts): trading or investing?

Want to make money? Then choose your side: are you a trader or an investor?
If you trade, you’re chasing quick profits. But you need a cool head, risk management, and a strong stomach to withstand anxiety and volatility. If you invest, you build over time. One brick at a time, with patience and discipline.
Two different approaches, both valid. But mixing them is the quickest way to lose yourself and your money.

3) Study and get informed

You don’t need to know everything. Just knowing something better than others is enough. Do you follow financial statements? Read quarterly press releases? Do you know what’s happening in a company before TG5 reports it? These details make the difference between an investor and a gambler.

For example, in Europe anyone who read Banco BPM’s accounts at the end of 2024 knew that the bank was posting record profits, thanks to interest margins boosted by ECB rates at their highest in years. The same quarterly report anticipated a sharply increased dividend, a sign of capital strength and confidence in the future. In just a few months, the stock rose by more than 50%, also driven by a favorable environment for the entire banking sector.

4) Take advantage of crises, buy when everyone else is selling (but not blindly)

"Buy when there’s blood in the streets," said Rothschild. Market crises, like those of 2009, 2020, or 2022, are perfect times to make money investing in the stock market, if you know what you’re buying. The trick is to study the fundamentals, not emotions.

People are often afraid to buy when the market is crashing. That’s normal. But that’s also where the real deals are made.

5) Diversify wisely

Diversification doesn’t mean buying everything you can get your hands on. It means balancing sectors, currencies, geographic areas, and time horizons. Buying 10 US tech stocks isn’t diversification; you’re exposed to a single risk.

To diversify properly, you can use thematic ETFs on renewable energy, AI, and European defense. This reduces risk while maintaining return potential.

6) Perfect timing doesn’t exist (but time does)

One of the most common mistakes is waiting for the "right moment" to enter the market. In the meantime, you miss opportunities. No one can predict the market’s bottom or peak. But those who have invested consistently over the last 10 years, especially buying during the crashes, are now making money.

It’s better to enter gradually, perhaps with a PAC (Capital Accumulation Plan). This way, you eliminate the stress of market timing and profit from the stock market over the long term.

7) Learn to sell (it’s harder than buying)

Everyone talks about when to enter. Few know when and how to exit. Yet profit is only made by selling. Set your goals in advance: do you want to earn 20%? Do you want to hold until the company pays dividends? Set the rules and stick to your plan.

And if you choose the wrong stock? Cut your losses immediately. “Let profits run, cut losses”: easy to say, very difficult to do. But essential to winning in the stock market and making money.

8) Keep an eye on macroeconomic data

Interest rates, inflation, geopolitics, and central banks influence the stock market and decide whether your portfolio gains or loses. In 2022, growth stocks collapsed with the Fed’s tightening. In 2025, they’re recovering.

If you want to make money with stocks, you need to know where the world is going. Follow current events, not just the charts.

Original article published on Money.it Italy. Original title: Come guadagnare in Borsa? Trucchi e strategie per fare soldi