8
How to Make Money in Stocks in 2026: 6 Easy Steps
You’re our first priority.
Every time.
NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. They are not intended to provide investment advice. NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance.
We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.
So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners.
How to Make Money in Stocks in 2026: 6 Easy Steps
The secret to making money in stocks? Staying invested long-term, through good times and bad. Here's how to do it.
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.
Updated · 4 min readHow is this page expert verified?
NerdWallet's content is fact-checked for accuracy, timeliness and relevance. It undergoes a thorough review process involving writers and editors to ensure the information is as clear and complete as possible.
More on our editorial rigor
Head of Content, Investing & Taxes
19 years of experience Expertise Retirement planning investment management investment accountsArielle O’Shea leads the investing and taxes team at NerdWallet. She has covered personal finance and investing for nearly 20 years, and was a senior writer and spokesperson at NerdWallet before becoming an editor. Previously, she was a researcher and reporter for leading personal finance journalist and author Jean Chatzky, a role that included developing financial education programs, interviewing subject matter experts and helping to produce television and radio segments. Arielle has appeared on the "Today" show, NBC News and ABC's "World News Tonight," and has been quoted in national publications including The New York Times, MarketWatch and Bloomberg News. She is based in Charlottesville, Virginia.
Arielle O’Shea leads the investing and taxes team at NerdWallet. She has covered personal finance and investing for nearly 20 years, and was a senior writer and spokesperson at NerdWallet before becoming an editor. Previously, she was a researcher and reporter for leading personal finance journalist and author Jean Chatzky, a role that included developing financial education programs, interviewing subject matter experts and helping to produce television and radio segments. Arielle has appeared on the "Today" show, NBC News and ABC's "World News Tonight," and has been quoted in national publications including The New York Times, MarketWatch and Bloomberg News. She is based in Charlottesville, Virginia. Published in Head of Content, Investing & Taxes + more + more
Certified Financial Planner®
Expertise financial planning wealth management high net worth underserved communities retirement planning Raquel Tennant, CFP®, is a financial guide at Fruitful, a financial wellness platform providing members with unlimited financial advice and access to financial planning to the masses at a low cost. Tennant began her career in the fee-only RIA firm space, serving ultra high-net worth clients and is now proud to align her passion for helping younger, diverse and underserved clients, who often feel neglected by traditional firms. A graduate of Towson University, Tennant is one of the first 12 inaugural graduates of Towson's CFP Board Registered Financial Planning major and the first of her class to pass the CFP exam. She proudly collaborates with her alma mater as a writer and guest speaker to students, faculty and staff, bringing awareness to both the financial planning major and the RIA financial planning industry. She has been featured on 2050 TrailBlazer’s podcast episode “The Power of Partnership”, CFP Board’s "Stay on Your Path" video, and Towson’s College of Business & Economics “Finding the Right Fit” news feature. Tennant is also a CFP Board professional mentor. At NerdWallet, our content goes through a rigorous editorial review process. We have such confidence in our accurate and useful content that we let outside experts inspect our work. Certified Financial Planner® + more + more
Head of Content, New Verticals
11 years of experienceChris Hutchison helped build NerdWallet's editorial operation and has directed coverage across banking, investing, taxes and insurance. He now leads a team exploring new verticals. Before joining NerdWallet, he was an editor and programmer at ESPN and an editor at the San Jose Mercury News.
Chris Hutchison helped build NerdWallet's editorial operation and has directed coverage across banking, investing, taxes and insurance. He now leads a team exploring new verticals. Before joining NerdWallet, he was an editor and programmer at ESPN and an editor at the San Jose Mercury News. Head of Content, New Verticals + more + moreMaking money in stocks is usually a long-term game: Very few people clean up overnight. People who make money by investing do so by consistently putting money away over a long period of time.
Making money in stocks is usually a long-term game: Very few people clean up overnight. People who make money by investing do so by consistently putting money away over a long period of time.While consistency and time are important in investing, some strategy can help too. Tactics like "buying and holding" and reinvesting dividends can likely increase your returns. Here's how to sustainably grow your wealth with stocks.
While consistency and time are important in investing, some strategy can help too. Tactics like "buying and holding" and reinvesting dividends can likely increase your returns. Here's how to sustainably grow your wealth with stocks.1. Open an investment account
1. Open an investment accountFirst thing's first: You need to have an investment account to buy stocks. Opening an investment account is similar to opening a bank account. You can add money to your account through a bank transfer, then you can use that money to buy stocks. An investment account is not an investment itself: It's where your investments live.
First thing's first: You need to have an investment account to buy stocks. Opening an investment account is similar to opening a bank account. You can add money to your account through a bank transfer, then you can use that money to buy stocks. An investment account is not an investment itself: It's where your investments live.Brokerage firms
Brokerage firms
Brokerage firmson Charles Schwab's website
on E*TRADE's website
on Vanguard's website
on Fidelity's website
There are several types of investment accounts. Choosing the right account for you may save a lot of money on taxes. It may even benefit you to have a few different investment accounts. For example, financial advisors often say to start investing through a 401(k) (a workplace investment account) if it's available to you. That's especially true if the employer offers a match. Then, they say to start investing in either a Roth or traditional IRA for tax benefits. Then you can move to a traditional brokerage account if you have money left over.
There are several types of investment accounts . Choosing the right account for you may save a lot of money on taxes. It may even benefit you to have a few different investment accounts. For example, financial advisors often say to start investing through a 401(k) (a workplace investment account) if it's available to you. That's especially true if the employer offers a match. Then, they say to start investing in either a Roth or traditional IRA for tax benefits. Then you can move to a traditional brokerage account if you have money left over.Get Started
Figure out which type of brokerage account is best for you, where to open it and the step-by-step process of doing so.
Figure out which type of brokerage account is best for you, where to open it and the step-by-step process of doing so.2. Consider stock funds instead of individual stocks
2. Consider stock funds instead of individual stocksIf you want to make money in stocks, there is a much easier, and often more lucrative, way to do it: index funds. These investments are made up of dozens or even hundreds of stocks that mirror a market index, such as the S&P 500. With index funds, or exchange-traded funds, you don't need to know much about the individual companies to succeed.
If you want to make money in stocks, there is a much easier, and often more lucrative, way to do it: index funds . These investments are made up of dozens or even hundreds of stocks that mirror a market index, such as the S&P 500. With index funds, or exchange-traded funds, you don't need to know much about the individual companies to succeed.Instead, you're investing in lots of stocks all at once, and you don't have to manage them individually. Investing through funds can help decrease your risk. For example, if you are invested in three companies and one goes out of business, your overall portfolio will likely drop. If you're invested in 500 companies and one goes out of business, it probably won't affect you as much.
Instead, you're investing in lots of stocks all at once, and you don't have to manage them individually. Investing through funds can help decrease your risk. For example, if you are invested in three companies and one goes out of business, your overall portfolio will likely drop. If you're invested in 500 companies and one goes out of business, it probably won't affect you as much.Sure, it's possible to earn more money with individual stocks than index funds, but you’ll need to do a lot of work first. You'll have to do a lot of research on individual companies. And even with all that work, you're still less likely to make more money than just by investing in funds.
Sure, it's possible to earn more money with individual stocks than index funds, but you’ll need to do a lot of work first. You'll have to do a lot of research on individual companies. And even with all that work, you're still less likely to make more money than just by investing in funds.» Learn more: Stocks vs. funds
» Learn more: » Learn more: Stocks vs. funds3. Stay invested with the "buy and hold" strategy
3. Stay invested with the "buy and hold" strategyThe key to making money in stocks (if you're investing in funds remember that you're still investing in stocks) is staying invested. Your length of time in the market is the best predictor of your total performance. The "buy and hold strategy" is exactly what it sounds like. You buy stock investments that you think will perform well over time, then hold onto them for years to come.
The key to making money in stocks (if you're investing in funds remember that you're still investing in stocks) is staying invested. Your length of time in the market is the best predictor of your total performance. The "buy and hold strategy" is exactly what it sounds like. You buy stock investments that you think will perform well over time, then hold onto them for years to come.The stock market’s average return is a cool 10% annually before inflation. But many investors fail to earn that 10% simply because they don't stay invested long enough. They often move in and out of the stock market at the worst possible times, missing out on annual returns.
The stock market’s average return is a cool 10% annually before inflation. But many investors fail to earn that 10% simply because they don't stay invested long enough. They often move in and out of the stock market at the worst possible times, missing out on annual returns.The more time you're invested in the market, the more opportunity there is for your investments to go up. The best-performing stocks increase their profits over time and investors continue to buy the stock. That in turn increases the stock price. That higher price translates into a return for investors who own the stock.
The more time you're invested in the market, the more opportunity there is for your investments to go up. The best-performing stocks increase their profits over time and investors continue to buy the stock. That in turn increases the stock price. That higher price translates into a return for investors who own the stock.4. Check out dividend-paying stocks
4. Check out dividend-paying stocksMore time in the market also allows you to collect dividends, if the company pays them. Dividends are regular distributions of profits that some companies pay out to shareholders.
More time in the market also allows you to collect dividends , if the company pays them. Dividends are regular distributions of profits that some companies pay out to shareholders.Get the list
Dividend stocks provide a steady stream of income, typically paid out quarterly. They also tend to be more stable, established companies. View our list of the best options.
Dividend stocks provide a steady stream of income, typically paid out quarterly. They also tend to be more stable, established companies. View our list of the best options.If you’re trading stocks often, you won’t own the stock long enough to capture the dividend payouts. There are also dividend ETFs you might consider for more diversification.
If you’re trading stocks often, you won’t own the stock long enough to capture the dividend payouts. There are also dividend ETFs you might consider for more diversification.And when you reinvest those dividends? You can boost your total return. That means electing to put dividend payouts back into buying more shares of the stock or ETF. You can likely automate this process through your brokerage account — we have a list of the best brokers for dividend stocks that do this well.
And when you reinvest those dividends? You can boost your total return. That means electing to put dividend payouts back into buying more shares of the stock or ETF. You can likely automate this process through your brokerage account — we have a list of the best brokers for dividend stocks that do this well.5. Explore new industries
5. Explore new industriesIf you're interested in investing in stocks for the rush, index funds or ETFs may not do it for you. So it's fine to set aside a small portion of your portfolio to check out individual companies or industries that feel more exciting.
If you're interested in investing in stocks for the rush, index funds or ETFs may not do it for you. So it's fine to set aside a small portion of your portfolio to check out individual companies or industries that feel more exciting.Some industry stocks, like commodity stocks, are tried and true. Others, like AI stocks, are booming now — but that may change. You'll want to research the industry and any potential investments first. One way to take less risk is to invest in industry ETFs, such as AI ETFs rather than AI stocks.
Some industry stocks, like commodity stocks , are tried and true. Others, like AI stocks , are booming now — but that may change. You'll want to research the industry and any potential investments first. One way to take less risk is to invest in industry ETFs, such as AI ETFs rather than AI stocks.6. Dollar-cost average
6. Dollar-cost averageThe stock market is the only market where the goods go on sale and everyone gets a little nervous about buying. That may sound silly, but it’s exactly what happens when the market dips. Investors understandably become scared and often sell in a panic. But when prices rise, investors plunge in headlong. It’s a perfect recipe for “buying high and selling low" instead of "buying low and selling high."
The stock market is the only market where the goods go on sale and everyone gets a little nervous about buying. That may sound silly, but it’s exactly what happens when the market dips. Investors understandably become scared and often sell in a panic. But when prices rise, investors plunge in headlong. It’s a perfect recipe for “buying high and selling low" instead of "buying low and selling high."To avoid that, you can employ a strategy called dollar-cost averaging. With this approach, you invest at regular intervals over time. This makes it so, on average, you're not putting a whole bunch of money into the market when the price is either very high or very low.
To avoid that, you can employ a strategy called dollar-cost averaging . With this approach, you invest at regular intervals over time. This makes it so, on average, you're not putting a whole bunch of money into the market when the price is either very high or very low.Nerdy Perspective
Dollar-cost averaging sounds fancy, but there's a good chance you're already doing it. If you have a 401(k) or other retirement account through work, and you have selected investments in that account, your employer pulls contributions out of your paycheck on a regular schedule and deposits them into your 401(k) for you. Once they're in there, the 401(k) administrator invests the money in the investments you've selected, allocated in the amounts you have directed. This is dollar-cost averaging — investing on a regular basis whether the market is up or down. If you don't have an employer-sponsored retirement account, a similar system is possible in an IRA or other brokerage account.
Dollar-cost averaging sounds fancy, but there's a good chance you're already doing it. If you have a 401(k) or other retirement account through work, and you have selected investments in that account, your employer pulls contributions out of your paycheck on a regular schedule and deposits them into your 401(k) for you. Once they're in there, the 401(k) administrator invests the money in the investments you've selected, allocated in the amounts you have directed. This is dollar-cost averaging — investing on a regular basis whether the market is up or down. If you don't have an employer-sponsored retirement account, a similar system is possible in an IRA or other brokerage account. About the author Arielle O'Shea Arielle O'Shea Arielle is a NerdWallet authority on retirement and investing, with appearances on the "Today" Show, "NBC Nightly News" and other national media. See full bio.Guide to making money in stocks
1. Open an investment account 1. Open an investment account 2. Consider stock funds instead of individual stocks 2. Consider stock funds instead of individual stocks 3. Stay invested with the "buy and hold" strategy 3. Stay invested with the "buy and hold" strategy 4. Check out dividend-paying stocks 4. Check out dividend-paying stocks 5. Explore new industries 5. Explore new industries 6. Dollar-cost average 6. Dollar-cost averageGuide to making money in stocks
1. Open an investment account 1. Open an investment account 2. Consider stock funds instead of individual stocks 2. Consider stock funds instead of individual stocks 3. Stay invested with the "buy and hold" strategy 3. Stay invested with the "buy and hold" strategy 4. Check out dividend-paying stocks 4. Check out dividend-paying stocks 5. Explore new industries 5. Explore new industries 6. Dollar-cost average 6. Dollar-cost average More like this Investment Basics Investing Stocks Best Robo-Advisors: Top Picks for 2026 We spent hours testing robo-advisors to find ones that charge low fees but still offer high-quality features, including automated portfolio rebalancing, exposure to a range of asset classes and financial planning tools. 2 By Alana Benson, Sabrina Parys Investing in Dividend Stocks: Guide, Calculator and Top 7 Yields for April 2026 Dividend stocks can be a great choice for investors looking for passive income and portfolio stability. Here's what to look for when evaluating dividend stocks and how to invest in them. 2 By Chris Davis, Sam Taube Best Brokers for Beginner Investors: Top Picks for 2026 We spent hours analyzing the best brokers for beginners to find ones that offer low costs, helpful educational content and a broad investment selection. Our testers also looked for trading platforms that are easy to navigate. 2 By Alana Benson, Bella Avila Best Investments: Where to Invest in 2026 Wondering where to invest your money this year? High-yield savings accounts, CDs, bonds, funds and stocks are all considered among the best investments available. Learn more about the risks, potential returns and how to get started. 2 By Chris Davis, Alieza Durana Best Brokerage Accounts for Online Investing and Stock Trading in 2026 Based on hours of analysis and hands-on testing, here are our picks for the best brokerage accounts based on their low fees, strong platforms, quality customer support and other factors. Chris Davis Best Robo-Advisors: Top Picks for 2026 We spent hours testing robo-advisors to find ones that charge low fees but still offer high-quality features, including automated portfolio rebalancing, exposure to a range of asset classes and financial planning tools. 2 By Alana Benson, Sabrina Parys Investing in Dividend Stocks: Guide, Calculator and Top 7 Yields for April 2026 Dividend stocks can be a great choice for investors looking for passive income and portfolio stability. Here's what to look for when evaluating dividend stocks and how to invest in them. 2 By Chris Davis, Sam Taube Best Brokers for Beginner Investors: Top Picks for 2026 We spent hours analyzing the best brokers for beginners to find ones that offer low costs, helpful educational content and a broad investment selection. Our testers also looked for trading platforms that are easy to navigate. 2 By Alana Benson, Bella Avila Best Investments: Where to Invest in 2026 Wondering where to invest your money this year? High-yield savings accounts, CDs, bonds, funds and stocks are all considered among the best investments available. Learn more about the risks, potential returns and how to get started. 2 By Chris Davis, Alieza Durana Best Brokerage Accounts for Online Investing and Stock Trading in 2026 Based on hours of analysis and hands-on testing, here are our picks for the best brokerage accounts based on their low fees, strong platforms, quality customer support and other factors. Chris Davis Best Robo-Advisors: Top Picks for 2026 We spent hours testing robo-advisors to find ones that charge low fees but still offer high-quality features, including automated portfolio rebalancing, exposure to a range of asset classes and financial planning tools. 2 By Alana Benson, Sabrina Parys Investing in Dividend Stocks: Guide, Calculator and Top 7 Yields for April 2026 Dividend stocks can be a great choice for investors looking for passive income and portfolio stability. Here's what to look for when evaluating dividend stocks and how to invest in them. 2 By Chris Davis, Sam Taube Best Brokers for Beginner Investors: Top Picks for 2026 We spent hours analyzing the best brokers for beginners to find ones that offer low costs, helpful educational content and a broad investment selection. Our testers also looked for trading platforms that are easy to navigate. 2 By Alana Benson, Bella Avila Best Investments: Where to Invest in 2026 Wondering where to invest your money this year? High-yield savings accounts, CDs, bonds, funds and stocks are all considered among the best investments available. Learn more about the risks, potential returns and how to get started. 2 By Chris Davis, Alieza Durana