Online part time job idea 07: Stock trading

For anyone looking to work from home doing an online part time job, stock trading is arguably the most profitable thing you can do. After all, it’s one of my main sources of income! There is no limit on the gains you can make, and it’s totally up to you to determine how much you earn. You won’t have a boss telling you what to do, there are no customers to deal with, and you can choose when and where you want to work. You will, however, have to manage inventory (the stock that you hold). How well you manage this inventory is the key to profits and loss. It should also be said that this is one of the riskiest online part time jobs you could do, but that should be expected when you consider that there is no such thing as easy money.

For the sake of simplicity, there are basically two ways to trade stock:

  1. Swing trading: This is exactly what it sounds like. You buy a stock and hold it until it swings in your favor. In other words, buy company ABC at 12.50 and wait until it moves up to 13 (or whatever your target is). The typical length of a swing trade position is several weeks, but it could last from 1 day to 1 year.
  2. Day trading: The same rules of swing trading apply here, but the time frame is much shorter. Most day traders do not hold any positions overnight (they start fresh every day).

For most people who want to trade as an online part time job, swing trading is the recommended route. This method does not require to be tied to the computer all day (or night) long, because all you need to do is make a few picks and wait until they turn in your favor. Chances are you’ll have to make adjustments all the way, but compared to day trading, this is a largely hands off method.

Prerequisites:
Trading capital (see below), and a general understanding of the stock market. You don’t have to be an expert, but you can learn a lot by reading about what other traders are doing (careertrader and hotstockmarket)

Start up costs:
To make this a legitimate online part time job, you need at least $5000 in trading capital. Anything less will be very difficult to make any money with because of commissions (which can cost as much as $20 per trade).

Potential earnings:
Completely unlimited.

Although trading can seem to be very complex thing, it really isn’t. It’s easy to learn how to read a chart, but key to success is in the mind of the trader. You aren’t competing against anyone else, and there’s nobody telling you what to do. This makes it an excellent choice as an online part time job.

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