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    Investing for Beginners Basics

    The New Investor's Guide to Making Money

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    By Joshua Kennon
    Updated September 29, 2016

    In all my years of writing here, it should come as no surprise to you that the most frequently asked question is about making money from investments.  After a few dozen times of being asked essentially the question by one person after the next, I figured it was a good time to write a guide explaining the basics of making money in each major type of investment, i.e. stocks, bonds, mutual funds, and real estate.  No mater which type of investment you choose, making money really comes down to one simple formula: revenue minus cost equals profit.  To learn more, let's get started!

  • 01
    Four Secrets to Making Money

    Secrets to Making Money

    Have you ever wondered how to get rich?  To begin, there are four important keys that underpin my philosophy to making money and becoming financially independent.  I wrote them out for you here in the hopes that you find them useful in your own quest for success.  Take a moment to read over them, print them out, and think about them.

  • 02
    Making Money from Stocks

    Making Money Investing in Stocks

    When it comes to investing in stocks, many new investors don't know how they can actually make money.  They don't understand the difference between capital gains, dividends, and other sources of profit.  If you're a beginning investor, don't worry!  This short guide was written with the novice investor in mind to help you make sense of the potential ways you can start making money by owning stocks.  

  • 03
    Making Money from Dividends

    Making Money with Dividends

    When it comes to making money, one of the oldest and most traditional strategies involves buying shares of stock in companies that return most of their profits to the owners in the form of cash dividends. Simply stated, the more stock you own, the more dividends you receive.  In this brief introduction, I'll teach you how to begin making money from dividends and dividend investing.

  • 04
    Making Money from Bonds

    Making Money from Bond Investing
    John Labbe, The Image Bank, Getty Images

    When it comes to making money, bonds are one of the oldest ways known to man.  In the most basic sense, you, the investor, lend some cash to a company or government in exchange for the promise of repayment and interest income. Unfortunately, in many cases it isn't that simple.  There are actually two ways you can make money from investing in bonds, which most new investors don't realize.

  • 05
    Making Money from Real Estate Investing

    Making Money from Real Estate Investing

    As with stocks and bonds, in the world of real estate investing, there are only a handful of ways an investor can begin making money.  In this overview, I'll help you understand the basics of real estate and show you how successful real estate investors work to maximize their profits.

  • 06
    Making Money from Mutual Funds

    Making Money Investing in Mutual Funds

    A vast majority of Americans have invested in mutual funds, mostly through a 401(k) plan at work, a Roth IRA, a Traditional IRA, a 403(b), a SEP-IRA, a Simple IRA, or another retirement account.  If you're about to invest in your first mutual fund, it is important to understand what exactly mutual funds are.  Unfortunately, many new investors can't actually tell you what a mutual fund is, let alone, tell you how a mutual fund works or how you make money from a mutual fund.  Grab a notebook and pen, and take a few moments to read this brief introduction.  In it, I'll walk you through the basics of mutual funds and help you understand how investors make money investing in mutual funds.

  • 07
    Making Money from ETFs

    Making Money By Investing in ETFs

    Don't be frightened by exchange traded funds, or ETFs.  Making money from ETFs is almost the same process as making money from mutual funds, which you learned about above. There are large numbers of ETFs available in which you can invest, but the source of your profit will ultimately depend on the type of investments owned by the ETF.  In this article, I'll provide some insight and guidelines on typical ways most ETFs might make money.

  • 08
    The Most Important Rule of Investing

    Never Invest in Something You Don't Understand
    Roy Scott / Ikon Images / Getty Images

    If you've read through and studied the resources I provided in this article and you're ready to put your capital to work, before you take that step, there is one golden rule you must remember for the rest of your life: never invest money that you cannot afford to lose. You would be surprised to find out that many investors do not follow this simple tenant of investing.  Even the greatest of fortunes can be lost overnight, so it is wise to keep a nice cushion of cash and resources on hand that can pay for food, shelter, clothing, medical care, and any other living expenses for an indefinite period of time should such calamity arise.  Learn more about this investing rule as well as the importance of saving your money in this article.

  • Making money investing in mutual funds isn't like making money from other investments because how you earn a profit depends upon the underlying investments held by your fund.

    How to Make Money by Investing in Mutual Funds

  • World Markets at a Glance

    A Beginner Guide to Investing in Stocks

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    How Investors Earn Income From Exchange-Traded Funds (ETFs) Investing

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    Making Money From Buying Stocks

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    What Limited Partnerships Are and Why They Matter to Your Investments

  • Investment terms to know

    Understand How to Invest Your Money to Make it Grow

  • Before you decide to invest in the stock market, it is important to understand the primary relationships you'll have with your broker and brokerage firm, the fees you may incur, the types of brokerage accounts, your brokerage statements, and more.

    New to Investing? Check Out This Complete Guide to Brokers

  • Building Wealth and Growing Your Investments

    Tips for Making Money and Building Your Net Worth

  • How to Start Investing

    You have money. You want to invest. Here's how to get going.

  • Proxy Statement

    How a Company's Proxy Statement Can Reveal Things About a Business

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    How to Make Money by Creating Passive Income

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    Here Is the Basics of Investing and the Different Types of Investments

  • Investment Losses Losing Money

    Understanding one of the reasons new investors don't succeed.

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    Understanding Trade Confirmations as a New Investor

  • Master Limited Partnership (MLP)

    How Master Limited Partnership Investing Differs From Common Stock

  • Market makers are banks and brokerage firms that operate throughout the entire trading day with firm bid and ask prices, and will literally make a market for a stock when there are no interested buyers or sellers.

    An essential cog to keep markets operating smoothly.

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