Working online gives you the freedom to make money and live and work from anywhere in the world. Lots of travel bloggers make money doing trading, but is it really possible and how easy is it to make money?
What is Trading
Trading is a form of speculation in securities in which you buy and sell a financial instrument within the same trading day. You can buy shares in small and large companies around the world in industries like travel, tourism, technology, banking and more.
Starting as a Total Beginner
Trading might sound like a dream but it really can be done. All you need to do is research, learn, practise and then start on your journey. There are lots of different platforms you can use to trade, there is the option to invest with a company or broker who will invest your money for you. Or if you fancy doing everything yourself, you can download an app or register with a website to get started. There are lots of apps to consider including Trading212, etorro, Robinhood, Webull and more. All have instructions how to get started and all are easy to setup. You will need proof of ID and a bank account to transfer funds.
How to Learn to Trade
Trading isn't easy especially when starting out but there are lots of ways to learn including read books, watching YouTube videos, joining forums and social media pages and practising.
Benefits of Trading
Get the freedom to be anywhere and work from anywhere you want. Get financial freedom and not rely on others to make a living. If you do manage to learn to trade and do get to explore the world at the same time you could consider yourself to be one of the luckiest people in the world. You can literally go anywhere as long as you have connection to the internet, you can even trade full time using your phone!
Companies to Invest In
There are so many companies to invest in, some are household names which and globally recognised like Amazon, Google and Facebook whilst others are small lesser known companies. We recommend avoiding travel stocks at the money due to instability in the market due to Covid-19 but there are lots of others industries to consider.
Amazon have grown by almost sixty-five percent since the end of March. On Monday, their shares showed a new record value - $ 3344, yesterday's mark is lower, but also very significant. The third most important company on the US stock exchange is worth over one and a half trillion. The rise in e-commerce during the quarantine period helped the Seattle-based company benefit from the current disaster. On Thursday, July 23rd, we anticipate more than eighty billion in revenues.
If this value is reached (27.4% YoY), the effectiveness of both e-commerce and cloud computing is proven. However, if we take for comparison the same period last year, the profit will decrease by more than seventy percent. Keeping employees safe in a pandemic and improving logistics at neck-breaking speed comes at a cost. The booming cloud computing will be under the investors’ scrutiny. Can the industry sustain its dizzying growth? Ten billion dollars is the sum Amazon Web Services earned for the corporation. When sales top the ten billion $ mark it is pretty impressive, but what happens next?
The largest social network, Facebook, has thrived during the corona crisis. In the last quarter, their stocks gaining sixty percent. Their share price also broke a new record, jumping up to two hundred fifty $on Monday and holding at just under $ 240 yesterday. The $ 681 billion value sounds impressive, but FB is still in the last place among the five tech giants. Their market capitalization falls short of a trillion dollars. However, Menlo Park clearly won during the self-isolation. The government's efforts to maintain social distance and limit the time away from home have made Facebook the primary communication channel for people separated by distance.
Affiliated platforms, Instagram and WhatsApp, gained even more users, and the social network itself has more than two and a half billion accounts. Even a hate speech and disinformation boycott by more than a thousand advertisers does not stop the corporation from growing revenue. These are the data as of July 29 as the markets closed. Analytics predict that the stocks will gain more than half of its value compared to the same period last year. Revenue growth, as per the forecast, will reach 17 billion, which also exceeds the previous figures. Nevertheless, the investors are not in a hurry to draw conclusions based on the peak values. It is worth considering what impact the global boycott will have on earnings in the second half of this year and further.
Risks
It is important to understand the risks involved in trading, this isn't like a normal 9-5 job with an established company, stocks and shares can go up and also down.
It is like gambling in a way, you are hoping a company you invest in share price rises, therefore making you money. But it can easily go the other way and result in a loss. It is important to do a lot of research and start small when starting out.
You also need to be aware of world news and events that can affect the market. The way the coronavirus crisis has affected economies around the world is also something to be aware of which can hit the market prices on a daily basis.
At the moment the markets are much more positive than from March and April 2020, supply chains in China have been restored and production is back to full operation, whilst consumer spending and service activity remains strong around the world. But the situation with the spreading of the new virus remains highly unpredictable. The reaction of consumers and, respectively, corporations directly depends on this. It is likely that volatility will reign in financial markets until the risks associated with the coronavirus diminish.
The biggest exchange stocks, including Forex, have prepared for unexpected financial drops and ups. Shareholders also braced themselves as well as titans of industry and economy. The new coronavirus has created a really strange situation even for Forex brokers in the US. As investors brace for the worst reporting period in a decade, Wall Street's earnings season is getting up steam in the second quarter. Consumer Discretionary and Energy will collapse by more than one hundred percent, while tech companies are going to lose only eight.
Tech-giants Microsoft, Amazon, and Facebook make up a significant part of the total market capitalization of the S&P 500. Of course, this cannot but affect small companies in this domain. Overall, the profits of this year's winners could lead to a significant breakout of the current market.
How to Get Started
If you are keen to give this career a try, you can start today by downloading a trading App, registering with a website or going direct with a broker.
Do you trade? Got any recommendations to share? Leave feedback in the comments section below.
