Why Stock Trading Is a Good Side Hustle
Stock trading can offer high-yielding returns in a matter of a short time. It allows you to make deals at a lesser amount of time while reaping big rewards—making it a perfect side hustle for all the busy bees who want to create other income streams.
Stock trading refers to purchasing a significant amount of shares from the stock market, waiting for them to increase their respective values, and selling them off to get profits. It sounds quite simple, right? However, many are still intimidated by the subject of the stock market—especially when you’re fairly new. Luckily, when you have learned your way around, you can make the most out of it.
Thinking of reasons why you should jumpstart a career in stock trading? Here’s a list of things you can benefit from when you start buying and selling stocks as a side hustle:
Low starting capital
One of the critical points to consider when doing a side hustle is how much you can shell out to be able to start. With a limited budget, you cut down all your options to the ones that will give you entry with a minimum cost—and stock trading gives you just that.
You can buy your first few stocks with $100 or less! Although a less invested amount cannot guarantee you huge earnings in an instant, you can decrease the loss potential as you only have shelled out a small amount. You can be patient with waiting for this small amount to grow when several good trades are accumulated.
Massive earning income potential
The main reason why a lot of people are getting into the stock market is the possible high-yielding returns. Trading offers you a high chance of earning exponential profits with the lesser invested amount. However, this is a high-risk business that still has its cons of possible high losses in a short period of time so you really need to familiarize yourself with how the stock market works.
When you have made good trades at the right stocks at the right time, you can enjoy maximum return of investment. In fact, there are part-time traders who make millions a year—earning as much as 200% profits!
Flexible hours to work with
Since you will be doing this in your free hours, stock trading gives you the flexibility to work on it according to your availability. It usually just takes a few minutes to call your broker and advise about your stocks or to buy and sell them yourselves when you do online trading. You have total control over your time as to when you are going to work.
However, the stock market has specific operating hours on which you should be guided. The New York Stock Exchange (NYSE) and Nasdaq both have a trading schedule of Monday to Friday from 9:30 a.m. to 4 p.m. EST. And it is recommended to make trades on the first and last hours of the day as these times offer the biggest moves. All in all, you can devote as much as three hours a day to do trading.
Option to go mobile
With the technological advancements paving the way for a more convenient stock trading, you have the option to go mobile. You can skip the old-school way of calling your brokerage firm for a piece of advice before you can buy and sell your shares because online trading lets you take care of that on your own.
You can totally do your trading without the use of a personal computer as there are mobile apps that let you do this on your phone. Imagine how convenient it is to do your stock trading whenever and wherever you are as long as you have an internet connection!
Quick generation of profits
Unlike investing in stocks which requires a long period of time before it incurs you returns, trading stocks gives you the opposite—you incur returns at a short timeframe. You can earn your profits in as short as a day, or most commonly known as day trading.
Traders know that when they hold on for a particular stock for too long, it can decrease its value over time. So it’s better to sell it off once there is an indication that it will fail in the market. Good traders know when to buy and sell the right stock at the right time. In a matter of a week, you can gain 5%-20% gains on your stocks.
More earning guarantee than stock investment
Investing in stocks has no guarantee of earning big after a few years. It is a long-term investment that poses the risk of a drastic decrease in its value over time. There are a lot of unforeseen factors that can impact their market value—one stock may seem promising at the moment but one single scandal can affect its value in a snap.
Stock trading, on the other hand, lets you extract your money before a stock fails in the market. You can get rid of it once you see an indicator of a dramatic failure—making you less prone to losses.
When you want to cut down on your trading costs, you have the option to go broker-free. Brokers advise you when to buy and sell stocks, assist you to make transactions, and teach you about trading stocks in exchange for a commission. This fee typically costs around $9 per trade. You can totally cut this down through trading on your own by using free stock trading services which are perfect for both beginners and experts.
No middleman means full authority
As you have chosen to go broker-free, you have the total control of your fate in stock trading. You don’t have any dependency on someone’s advice before you can jump in the market—you have the absolute freedom to do whatever you want. Buy stocks whenever you want, sell stocks as fast as you can, or even opt-out of the market when you don’t feel like doing it anymore.
Various streams to learn on your own
You don’t need to have a professional broker teaching you the ways around the industry, although it is most definitely helpful in your career. There is a variety of resources you can rely on to learn how to deal with stock trading. You can research online, read stock market references, or take up an online class—making it pretty convenient to lean on your own.