So you want to figure out how to make money in stocks? Honestly, it's not as complicated as people make it sound, but it does require you to do something most traders struggle with: patience.

I've noticed a lot of folks get caught up trying to time the market, jumping in and out constantly. But here's what the data actually shows—and this is wild when you think about it. Back through 2017, people who just stayed fully invested in the stock market averaged 9.9% annual returns. But if you were the type jumping around? Missing just the 10 best days tanked returns to 5%. Miss 20 best days and you're down to 2%. Miss 30 and you're actually losing money. The problem is nobody knows when those best days are coming, so you have to just... stay in. That's why buy-and-hold isn't boring—it's actually the move.

Now, here's where a lot of people mess up their approach to how to make money in stocks. They think they need to pick individual winners. But real talk? Most professionals can't even do that consistently. This is why diversification matters so much. Instead of betting everything on the next Apple or Tesla, you're better off throwing your money into funds that track major indexes like the S&P 500 or Nasdaq. You get exposure to hundreds or thousands of companies with one purchase, and you're automatically capturing that approximate 10% average market return without needing to be a stock picker.

One thing people overlook is dividends. Those small payments companies send shareholders? They're actually responsible for huge portions of historical stock market growth. From 1921 through 2021, the S&P 500 averaged 6.7% annual returns. But when you reinvested those dividends? It jumped to almost 11%. That compounding effect is real. Most brokerages let you set up automatic dividend reinvestment, which is honestly the easiest money move you can make.

Then there's the account question. Where you hold your investments matters almost as much as what you buy. Tax-advantaged accounts like 401(k)s and IRAs let your money grow without getting hammered by taxes every year, but you can't touch it until you're 59½ without penalties. Regular taxable accounts are more flexible—you can pull money out whenever you want and use strategies like tax-loss harvesting. The key is matching your account type to your timeline and goals.

The real secret to how to make money in stocks? It's not sexy. It's not exciting. You pick diversified funds, you reinvest dividends, you pick the right account type, and then you basically do nothing for decades. Even Warren Buffett tells people to just buy low-cost index funds and hold. That patience thing I mentioned? That's actually the whole game. Most people fail at investing not because they lack knowledge, but because they can't resist the urge to constantly tinker. Don't be that person.