Some basic ways a stock trader makes money:
1
Buy Low, Sell High. This is a method through which stock traders aim to buy a stock when it's cheap and sell it off at a higher price in the future. ...
2
Short Selling. ...
3
Dividends. ...
4
Spot Trading. ...
5
Futures Derivatives Trading. ...
6
Arbitrage Trading. ...
7
Fundamental Analysis. ...
8
Technical Analysis.
A profitable trader knows the reward-to-risk ratio of any trade they enter before they enter. A profitable trader knows if they have adequate capital to risk in order to realize their objectives. A profitable trader exhibits self-control and patience, understanding that they don't need to be in a trade at all times.
