Maximizing Profit in the Stock Market: 9 Strategies That Actually Work
- Silivere Bakomeza
- Jul 20, 2023
- 4 min read
Updated: May 6
The stock market offers life-changing opportunities to build wealth—but only if you know how to play the game. Too many investors dive in blindly, only to lose money through avoidable mistakes.
In this article, I’ll break down 9 proven strategies for taking profits in the stock market. Whether you’re a beginner or an experienced trader, these tips will help you become more consistent, less emotional, and ultimately more profitable.
1. Educate Yourself Before You Risk a Dime
You don’t need a finance degree to profit in the market—but you do need education.
Study the basics:
Fundamental analysis (company value, financial health)
Technical analysis (chart patterns, price movement)
Risk management (stop-losses, position sizing)
I’ve personally learned everything from trading stocks and options to using margin responsibly. The more you learn, the more you protect your money.
2. Know Your Goals and Risk Tolerance
Every investment decision should match your financial goals and your tolerance for risk. Are you trading for short-term profits, long-term growth, or a mix of both?
Here’s how I structure my brokerage accounts today:
Robinhood is where I run my $50-a-day MicroStrategy (MSTR) DCA challenge—a 20-year journey I’m documenting publicly. I buy one small piece of MSTR every market day, rain or shine. It’s the core of my retirement plan and a case study in focus and conviction.
Webull is my private portfolio, where I buy and hold stocks for the long term. These positions aren’t public, and they provide quiet, diversified growth for my family’s financial foundation.
Acorns is my automated, passive investing app. I use it to experiment with micro-investing and let spare change build up into something meaningful. It’s perfect for long-term investors or parents looking to invest for their kids’ future with custodial accounts.
Each platform has a specific purpose in my overall wealth-building plan. Separating accounts like this helps me stay organized, emotionally disciplined, and focused.
Related: This Is the Most Important Share of My MSTR Journey — You Can’t Get to 1,000 Without the First One
3. Diversify—But Don’t Overdo It
Diversification protects you from losing everything in a single bad trade. Spread your capital across multiple sectors—tech, energy, finance, healthcare, etc.
If you put all your money in one stock or industry, you’re gambling. When you diversify, one stock going down won’t sink your entire portfolio.
But remember I also believe in strategic concentration. That’s why I’ve committed to documenting my MSTR journey for 20 years. Here’s why I’m putting $50/day into just one stock: MSTR
4. Do Your Research (Or Be Ready to Pay for Not Doing It)
Before buying any stock, ask:
Is the company profitable?
What’s the P/E ratio?
What are the latest earnings and market trends?
If you’re not staying current, you’re trading blind. I’ve made money on both uptrends and downturns by staying informed and acting quickly.
Swing traders and day traders make money by reading headlines fast and moving faster. The ones who stay lazy about news lose fast.
5. Be Patient—Especially with Long-Term Investments
Short-term profits are great, but the big wins often come from holding quality companies through the ups and downs.
That’s why I use Acorns for long-term investing—it’s set-it-and-forget-it investing with automatic deposits. Learn more about Acorns and why I recommend it here.
I check it monthly, but I focus more on Robinhood and Webull, where I manage my active trades and strategies hands-on.
6. Set a Profit Target and Stick to It
Greed is your worst enemy.
In my Robinhood account, I set a 5% profit target for most swing trades. If I hit that, I sell—even if the stock keeps rising. Why? Because sticking to my plan makes me more money over time than chasing an extra 2% and losing 10%.
7. Use Stop-Losses (Always)
A stop-loss order limits how much you can lose. I always use a 2% stop-loss on my trades. It gives me peace of mind and removes emotion from the process.
Yes, sometimes it triggers early and the stock bounces back—but I’d rather take a small loss than gamble on a big one.
You don’t need to time the market. You need to protect your capital.
8. Don’t Trade with Emotions
In my early days, I held losing trades for too long, hoping they’d bounce back. Most didn’t. That’s how I learned the power of strategy over emotion.
Now, I have systems in place. My 2% stop-loss keeps me in check. My 5% target locks in wins. I no longer hope—I execute.
If you’re still making emotional trades, create a system today and stick to it.
9. Monitor and Review Your Portfolio
Don’t set it and forget it. That strategy can cost you if a company crashes or fundamentals shift.
At the very least, check your holdings once a month. That’s what I do with my Acorns account since their robo-advisors adjust my portfolio automatically. Meanwhile, I actively manage my Robinhood and Webull accounts daily.
Keep tabs. Adjust when necessary. Stay sharp.
Final Thoughts
Success in the stock market doesn’t come from luck—it comes from education, discipline, and execution.
You don’t need to be a genius. You need a plan.
You don’t need to be perfect. You need to be consistent.
If you want to follow someone doing this in real-time, I’m publicly documenting my 20-year, $50-a-day MicroStrategy DCA journey. I post weekly updates, share screenshots, and track everything transparently.
Start here:
Free Resources to Get Started
You don’t need millions to start investing. But you’ll never reach millions unless you start.
Let’s build wealth together—one trade, one share, one decision at a time.
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