A lot of people these days like to have the option of earning income from home, either as a full-time job or through a “side gig.” And rest assured, there are a lot of ways to do it! You may have read about some in the post ‘How I Make Money Working From My Sofa’, wherein the ideas of freelance drawing, Etsy, blogging, and more were discussed. Opportunities like these tend to be what people are thinking of when they consider how to earn income from home. Others, however, look to trading markets as well.
To be clear, I’m referring more to the practice of day trading here than investing. The two are almost interchangeable in some respects, but day trading requires a more active hand, and day-to-day attention (whereas investment is more for the long term). I also want to stress that in any form of day trading, there’s risk! Money can be lost as well as earned, and it’s extremely important to know what you’re doing before you enter a market. With that little caveat out of the way though, here are some of the ways many people go about trading from home.
The stock market is what most people think of when they imagine getting into day trading, and it’s pretty straightforward. You buy shares in a company, and you hope to sell them when the company’s stock has gone up and they are worth more money. That’s about all there is to it! I also want to note, though, that it has become easier than ever lately for people to give this form of trading a shot. Not only have some traditional brokers and online platforms streamlined their services to make it easier for people to get started, but we’ve also seen a burst in mobile apps designed to facilitate easy stock market entry for beginners. These apps have been around for a few years now, and just last year CNBC reported record trading among some of the leaders — indicating that more people are still signing on. Basically though, they enable people to create trading accounts with minimal deposits and low fees, so that they can simply begin buying and selling stocks.
Commodities make for an interesting category, because they tend to be somewhat slower-moving assets than most stocks. For this reason, a lot of people actually look to popular commodities (like gold or oil) for more long-term investment. That said, a day trading approach is certainly possible, and as with stocks it’s become easier to get involved. Today, a number of online brokers — some of them specific to individual commodities — make it easy to buy and sell quantities at your leisure.
Most people might think of stock markets first when considering getting into day trading — but forex is actually the most popular market. It is known as the largest and most liquid trading environment on Earth, which according to the forex information listed on FXCM, means it sees in excess of $5 trillion changing hands each and every day. That’s a little intimidating, but if anything it should indicate just how many people there are who opt for forex trading. The actual process of that trading is a little bit different than dealing in stocks or commodities. You actually buy or sell currency pairs representing the relationships between two currencies. If the first currency listed makes gains relative to the second over the course of your trade, you stand to profit. It takes a little bit of getting used to, but it is something you can do from home via an app or online service, and with practice it becomes similar to other forms of trading.
Cryptocurrency trading is still a fairly new option, but it’s quickly becoming fairly ordinary as well. Case in point, Yahoo’s tips for crypto trading essentially boil down to similar advice one might give to a stock trader: Choose a trading method, adequately fund your account, diversify, monitor relevant news, and so on. This reflects the fact that many are starting to view cryptocurrencies like their own stock market — or commodity market, more accurately. And here too, the trading process essentially amounts to buying and selling assets through a digital service. In some cases in fact, the same apps and platforms that support simplified stock trading now have crypto options as well.
So, there you have four common, popular ways of trading from home. As mentioned, each one involves risk, and it’s important to take an educated, careful approach if you’re entering any one of these markets. But they do represent additional ways that many look to earn extra income in their everyday lives.