People nowadays look for sources of extra income. Some sell online, work as freelancers, invest, and trade. Speaking of investing and trading, did you know that they are one of the most popular money-making schemes on the internet? With the evolution of technology comes the big changes in investing and trading. Before, stocks, indices, commodities, and forex can be bought over the phone, which is quite a hassle and a slow process. You have to talk to a human broker to buy the companies you want. But with new technology, you can now invest and trade with the tip of your fingers. if you want to learn more about trading and how you can earn passive income through it, read the rest of the blog.
How to Earn Passive Income Through Trading and Investing
Passive income can be easily earned through trading and investing. Unlike online selling or working as a freelancer, there is no need for you to think of your buyers or clients when you are working. With investing and trading, you are your own boss. You can earn as much as you want. if you are not yet convinced how trading or investing can make you money, here’s what you need to know.
1) Trading or investing can make you millions.
This might be too good to be true but trading can actually make you millions of money if done correctly. There is a saying that you can’t make a lot overnight but if you let your money sit in a broker for a while, it can work for you ten times or more. All you have to do is be patient and wait for the right timing to enter and exit the market. It may be tough at first but believe it or not, your patience and discipline will pay off.
2) You can do it full time.
No one wants to be a corporate slave forever. If you are looking forward to quitting your full-time job soon and you want something more sustainable where you can earn more, then trading is the best alternative. What’s great about this money-making scheme is that you can do it full-time whenever you feel confident quitting your job. Just make sure you have enough knowledge and money to do trading continuously.
3) Your money works for you.
Unlike any employment or online jobs, trading allows your money to work for you. You don’t need physical strength to grow your money. You can save your energy to travel and do the things that you love while your money does the work. But remember that you need other things such as knowledge, money, time to study, and confidence. In trading, you can win a lot but lose more. You need a plan and lots of strategies to take home more wins than losses.
The Idea of Copy Trading
Now that you have a gist of what trading or investing can do for you, let’s jump to an easier way to earn passive income through trading. Indeed, the internet and technology have evolved in a way we can’t imagine. Instead of just using online platforms and brokers, you can now start trading even without enough knowledge of it. While you are studying the market and the fundamentals and technicals of companies, you can start investing money in stocks and other portfolios through copy trading.
Never heard of it? Here’s what you should know.
What is Copy Trading ?
Copy trading is a strategy that enables you to copy positions opened by individuals. With copy trading, it’s not necessary that you know the stocks you are investing in. There’s no hassle in this strategy because all you need is money and a good trader to copy. Today, a good number of brokers offer copy trading to millions of investors and traders. For as low as $200 as capital, you can already invest money and let it grow by copying someone’s portfolio. The secret to earning more is by looking for a good trader who knows what he’s doing.
How does Copy Trading work?
To start copy trading, you need a broker that allows this strategy. Not all online brokers have copy trading but a couple of them are keeping up with the trend. Some of the good brokers you will find online are OctaFX, FBS, eToro, and Instaforex. You can choose any of them depending on your trading preference.
Recommended Brokers That Offer Copy Trading Platforms
After finding a broker, the next thing to do is follow the minimum deposit required. For example, if you open an account in eToro, you will be required to deposit $200 as your initial capital to fund your account. The minimum deposit depends on the country where you are located. After that, copy trading can already be done by finding a trader and clicking the “Copy” button on his/her profile.
How can I earn through copy trading?
Earning through copy trading is easy. It’s a convenient process that doesn’t need a lot of effort to execute. Again, to emphasize, the secret to earning big money in copy trading is finding a good trader who is knowledgeable about the market, knows how to manage risks, and aware of the fundamentals and technicals of the stocks he/she is investing in. If you want to be successful in copy trading, you need to find a trader that suits your portfolio taste. Also, remember to diversify. If you are copying someone, check his investments, and make sure that his money is well-diversified.
How much should I invest to get started?
You don’t need a lot of money to start copy trading. You can stick to the minimum deposit as your initial capital if you are not willing to lose money. The minimum deposit will depend on your broker. If you open an account with FBS, you can start for as low as $1. It’s up to you how much you are willing to invest in copy trading. The larger the amount, the larger your profits are. Risk management, discipline, and patience will get you to a far place.