My plan is to make close to $2000 a month/$500 a week through investments. For that, I can risk up to $2000 to start with. The following come in to my mind, even if nothing is for sure.

1) If I invest $2000 in stocks whose share is around $10 (though i can go between $8-$20 if it is going help me achieve what I wanted), i.e 200 shares.

So if those shares go up at least $1 in 2 days i.e I can make $200 in 2 days and at least $400 in a week (by selling them and then again buy other stocks with lower price or the same stock when it gets down). I was watching GRPN, and the stock was going up and down b/n 10-14 in a week.

I know there is a risk associated with it, but I am willing to learn and take the risks as well. I know it won't be something easy like that, but is that a bad idea?

  • 2
    What if the shares go down instead of up? You might want to read up a little to see what typical returns from stock are. If you have a sure-fire way of making $2000 a month with an investment of $2000, people will be beating a path to your door asking for investment advice. May 25, 2012 at 21:41
  • @DilipSarwate .. You are right. It may go down instead but, that is why I said I will take the risk.
    – WowBow
    May 25, 2012 at 21:53
  • 5
    Whenever I invested with that enthusiasm I lost heavily :( May 26, 2012 at 17:04
  • does putting/pulling money from stocks have any fees? or holding period? May 28, 2012 at 3:21
  • @CarlosJaimeC.DeLeon In my case, yeah it has a fee for putting/pulling.
    – WowBow
    May 29, 2012 at 14:57

3 Answers 3


Over the long run, you can expect to do about as well as the market itself. Depending on what time period you view, the stock market has typically provided returns of approximately 10%. Some years it is up, some years it is down. You may think you can get better returns, but you are mistaken. You may be able to do better over a short time period if you take on vastly more risk, but you won't be able to do so long term.

In order to make $2000/month, then, you will need approximately $240,000 to invest. And even then, you won't make that kind of return reliably. Some months, some years, you'll make more. Other times, you'll lose money.

If anyone tells you they can double your money in a month (which is what you are hoping for), walk away. Because it is either illegal or a scam.

The only way your plan can work is if you are reliably able to predict stocks which will go up by 10% in the next two days. You cannot do this. You can't even predict which stocks will go up by 10% in the next year.

  • 1
    To be clear, if you have $2000 to start investing and want to make $2000/month, the level of risk you are going to have to take is probably that of buying lottery tickets. May 25, 2012 at 21:42
  • Thank you @Chris .. I understand what you are talking about. & I will re-think what I am doing.
    – WowBow
    May 25, 2012 at 21:56
  • I don't think 10% on stock market is realistic anytime soon, and 10% over inflation - probably never.
    – StasM
    May 29, 2012 at 0:20
  • Chris was talking history, and the 10% is a good number. No one knows what future returns will be, but that's another discussion. May 29, 2012 at 15:53

Ignoring the wildly unreasonable goal, I'll answer just the Headline question asked. It's possible to choose dividend paying stocks so that you receive a dividend check each month. Dividends are typically paid quarterly, so 3 stocks chosen by quality first, but also for their dividend date will do this. To get $2000/mo or $24,000/yr would only take an investment of $600,000 in stocks that are yielding a 4% dividend.

  • If a company has 4% dividend and you invest $1000, are you going to get $40 (1000*4/100) quarterly or annually?
    – WowBow
    May 29, 2012 at 15:05
  • See my math above. The 4% is annual. A bit lower than the 1200% you seek. Sorry. May 29, 2012 at 15:50
  • Oh, yeah. I should have calculated it myself.
    – WowBow
    May 29, 2012 at 21:39

I'll mirror what the others have said in that your expectations for returns are wildly out of line with reality. If you could achieve that with only moderate risk hopefully you can see that you could ladder those returns by re-investing them and become a billionaire in short order. You may have noticed that there are a lot of really financially savvy people who are not billionaires. So the math for your plan falls apart somewhere, obviously.

However, in the spirit of being helpful, and with the caveat that super high returns involve super high risk I'll try and point you in the direction where this is theoretically possible, even if the odds would be better buying lottery tickets. One way to get more leverage from your money than just buying stocks is to buy options. With an options strategy your return/loss will be magnified greatly compared to buying stocks. That is, you can lose or gain a much higher multiplier of your original investment.

That said, I don't advise doing that with any money that you can't afford to lose every penny of, because you likely will.

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .