The means of earning money in the 21st century can be overwhelming to a person simply looking for more money to spend. The most popular ways to get extra income include getting a second job or starting an online business. Unfortunately, for the latter, you might experience a steep learning curve. If you are an employee and suddenly you have to work for yourself and set goals, things might be a little too complex for you to handle. On the other hand, for someone who is already good at the present job, it might be easier to start a new one. The only problem is that everyone has 24 hours to live in a day and that is the only window available for you to work two jobs. However, if you venture into stock trading, you will have the opportunity to earn a significant amount of money while keeping your day job. Here are reasons why you should consider stock trading as an alternative.
You Do Not Need to Quit Your Job
Keep your current job and then use your phone and computer for stock trading. You need a few hours daily. You can get the time from your lunch break, in some afternoons when you are having a slow day, and possibly a few hours in the morning. There is always a market open in some place in the world where you can have live trading of stocks. Alternatively, you can trade in your free time. You make decisions today about stocks to buy, sell, hold and so on but the effect of the decisions comes alive after several hours.
Not Limited by Hours
Unlike a job where you have to check in at a certain time and leave by the end of your shift, stock trading is an investment that does not specify the number of hours you are to work. It is going to be different from what you are familiar with in daily life. It will be mainly about spotting trends, applying formulas for trading, and learning more about the market. The good thing is that these things do not have to be on a desk. You can be doing them from wherever you are.
Become a Day Trader
The high risk and high reward game of day trading are enticing. It would be the best choice for you are seeking quick cash, and you want to benefit from compounded gains. Day trading allows you to buy and sell stocks in a day. You earn from the day’s gains and wait for the next day to repeat. Since you are trading every day, the losses also reduce because you are not holding the stock until it loses all its value. You can accumulate gains very fast such that you have a decent salary or income boost at the end of each week.
The other good thing with stocks is that when you settle for well-run companies, you can have a good payback every end of the financial year. You will be earning dividends that you can reinvest, or you can use as your side income. Stocks can also go up in value fast, allowing you to cash them out and earn money. You do not have to do anything other than buying a good …
Listening to someone who makes money from the stock market gives the impression of how it feels to make quick, easy money. As an aspiring investor, there are some basic things to consider before going to trade. Rather than put away money in a safe, you could be putting money into the stock market and watching it grow steadily. A common question noted by Option Animal is whether you feel the conviction to lose money. What would be your reaction if you ended up losing money?
Another rule to observe is to invest conservatively and aspire for medium-term gains. Developing a strong stock market investment takes time to develop. Do not get carried away by the notion of making huge gains in short-term periods. Time not timing is the secret.
What to Purchase?
The smartest way to start trading is by investing in a fund. This helps spread out your risk. What would you rather do, invest in a single company or a fund made up of shares of over 150 companies? A fund spreads out the risk so not all your shares remain in one basket. You also have the opportunity to buy guaranteed equity bonds or investment trusts, which resemble funds but are more complex than unit trusts. Abbreviated as GEBs, they invest in a wide number of stocks that run for a given period while promising a certain return on the money invested.
Whatever the amount you invest on your first go, ensure it is your savings. Holding investments through individual savings account entitles the investor to a given tax relief that includes capital gains tax.
Spread your Betting
If you have thousands of dollars at your disposal, you can spread them out. Invest in low, medium and or high-risk funds. There are many fund supermarkets online. They might take some charges for their administration costs, but they sure know what they are doing. Never rush to pick a fund based on past performance. When starting, go for funds that tailored for beginners. They spread out their risk evenly by investing in a given selection of funds. Another investment option is a tracker fund that offers passive investment on the indexes.
Ask your Experts
Those with large sums of investment funds at their disposal can pick financial advisers who will narrow down their choices to a given selection of funds that perfectly fit. However, if you have just started and are undecided when making decisions, there is a treasure trove of information present on the internet which displays the performance of investment funds. Individual fund managers have websites that give accurate details and help with decision making.
Point of Note
Consider how you put your funds into the investment and goes for what works with your financial situation. With many funds, you can make regular investments even if you lack a hefty down payment. This is not possible when investing in equity bonds. Regular savings help those investors who do not have a lump sum and provides flexibility in that you can halt or start based on the rise or fall in your amount saved.…