Three Ways to Make Money from Your Stock

There are three ways you can make money from the stocks you own or the stocks you want to invest in. Ideally, you want to make money in all three ways, each time you enter an investment.
Three ways are

1. Dividends.

Some stocks offer dividends, which means that they actually pay you to own the company's shares. This makes sense, because when you buy a stock, you buy a share of the company, so you should have the right to share the profits generated by the company. Not all companies offer dividends, but if they do it can really be a good thing.

2. Appreciation.

Obviously, all people who buy stocks do so because they believe the value of the stock will go up. So this should be the main factor in looking for stock investment. You want to get into a fundamentally strong and uptrend stock. When you want to invest in long-term stocks you want to buy, so you will find long-term companies.

3. Sale of covered telephones.

Finally, perhaps the most powerful way to make money from stocks you already own is through covered sales calls. When you sell an overlay call on a stock, what you are actually doing is selling someone the right to buy a stock at a certain price on or before a certain date. If the stock reaches that level on that day, you must sell your stock to profit. If it does not reach this level, the option will expire without value and you can sell a new one.