The latter is the type that defines a successful trader. However it is also the type that is hardest to pull off because many people do not have the business skills or ability to control their emotions when their money is at stake.
Want to make a small fortune in the stock market?
Start with a large fortune.
Go to Yahoo Finance and spend some time reading the articles. Following the links. Check out Motley Fool. Read a Wall Street Journal. Read a Fortune magazine. After a little self study you will know more than 50% of all college graduates and 99% of all high school dropouts.
It's not that hard.
Look companies exist to make a profit!
Investors buy those companies (shares) to share some of that profit.
In the case of bonds investors lend money to those companies to earn interest.
You should read some investing books. They will help you. Your local ibrary has shelves of them.
I know you can invest in stocks and bonds. What does the exact process look like in order to be profitable?
I know for stocks, you buy a share of a company for a certain price, and sell it when the price goes up. How does one exactly make a substantial amount of money eg stock brokers like this?
