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There are 4 types of domain names that are valuable:
  1. Domains with a lot of traffic,

  2. Idiomatic or popular phrases, such as movie titles,

  3. 2 and 3 letter domains, and

  4. Domains consisting of highly-searched words.

To make money from these four types of domains you must purchase a fixed-price backorder before anyone else does, from services like Snapnames and Cheap-DomainRegistration.com.  If you use auction backorder services, such as Pool.com and Namewinner, to win an expired domain name, you probably will bid an amount equal to or more than you can sell it for.

So the task is to find these domains before anyone else does.  For Type 1 domains, you may use a service such as Namesniper.  For Type 2 domains, you must use your own experience.  And for Type 3 domains, there are a limited amount, namely 17,576, so you may verify these backorders and expiration dates manually.

I, myself, prefer Type 4 domains.  For these I give you the above search tool.  Enjoy!