Sometimes a full-time income isn’t enough to fulfill every financial need. Earning some extra income on the side can help you pay your bills now while saving up for your future. If you’re thinking about generating a side income, but you aren’t sure how you’re going to do it, consider online stock trading. This guide will give you the steps to follow to make online trading your side hustle.
Think About Your Budget and Long-Term Goals
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First, it’s crucial to think about how much you’re willing to spend on stocks and how your trading will benefit your long-term financial goals. Some trading platforms require a minimum investment fee to start trading, while others don’t require one at all. No matter what, setting an investment budget can help you make trading decisions. For instance, if your budget is $250, you wouldn’t want to invest in stocks that cost $2,000 a share.
Choose Your Trading Platform
After deciding how much you’re able to invest and what your goals are, look into online trading platforms or trading apps to get started. Many trading platforms offer free account options, and you can usually find learning resources, research tools, and other useful information to educate yourself on the stock market. Once you’ve chosen your platform, create an account, and link your bank accounts. This is especially helpful for quick transfers if you plan on collecting regular dividends.
Consider Investing in a Broker-Free Plan
If you’re eager to move away from the online trading platforms and trade independently, you can earn money trading without a broker. Direct stock purchase plans are stocks you buy directly from a company’s offered shares, and dividend reinvestment plans allow you to reinvest the dividends you make when a company’s stock increases. With DSPPs, you pay an initial fee and a monthly deposit amount, and with DRIPs, you pay an initial fee, then any profits are automatically reinvested in the company.
Research the Stocks You Want to Buy
Once you’ve decided on the type of trading plan you want to invest in, start researching stocks you’re interested in purchasing. Look for factors like the company’s growth, the growth of the company’s stock, previous stock analyses, projected performance, and trends in growth. Whatever trading platform you’re using should have stock researching tools and resources, especially for doing stock analysis and determining which are the best stocks to invest in.
Now that you’ve set everything up, it’s time to start trading. If you’re uncertain whether you should take a risk, hold, or sell, you can always take a practice run on a stock trading simulator. As you actively trade and learn more about making a profit with trading, you should become more successful at it over time. This way, your trading game takes shape as a legitimate way to earn some side income.
With more Americans actively trading to earn side income, it’s safe to say that stock trading makes a great side hustle. As you actively trade over time, you’ll start to see your earnings increase. Keep learning and investing, and you’ll be on your way to financial freedom.