Buying and holding for the long term can be pretty popular. After all history has shown that over the long term the stock market does seem to go up. However it is kind of hard to have to wait so many years before you see a profit. There are some other very powerful strategies out that can help people to increase their income off of their investments.

There are two different strategies which can be extremely effective and can help you increase your profits. These two strategies are dividend investing and covered call writing.

When someone buys a great dividend paying stocks they recieve money every time the company pays out a dividend to their investors. So, simply by investing in stocks that pay a dividend an investor can get some extra passive income.

The second strategy is called a covered call. When an investor writes covered calls they are actually giving up some of their rights and taking on some additional risk by selling another investor the right to buy their stock from them at a specific strike price on or before a given date.

This can potentially be limiting because if the stock shoots up the investor will be forced to sell their stock at a much lower price and miss some of the profits.

But you do receive some money up front for taking this risk so it is up to the individual investor to decide if it is worth it or not. Personally I love this trading strategy and do not mind taking on the added risk for a while.

Selling covered calls can definately be pretty powerful for investors who utilize it correctly. Both of these methods can actually help people to increase the return that they make off of their invested money.