When you have invested on shares, you make money in various ways, for instance earn dividends, or earn profits by selling, or trading. Investing for longer time can yield better profits compared to trading or selling, but it is also a risky method because the stock market can crash or the company whose shares you bought can go bankrupt. This has happened many times and you need to be careful about choosing the shares from the right company. The key to minimize this risk is by investing in numerous companies instead of buying shares from the same company with all of your money.