Trading and Traveling
Working as a digital nomad is becoming more and more popular. The possibility of working online has affected a number of industries, some of them quite profitable. One of them is the world of trading. Nowadays, people who make money by trading are not just traditional, stressed-out, old-school brokers in suits with phones in their hands, roaming around their offices in discontent. Different types of online platforms have opened a lot of opportunities for all those with some knowledge in finances to enter the world of trading and make some money. Naturally, if you really want to get rich doing this you’ll have to put a lot of effort and dedicate a big portion of your time to keep up with all the relevant trends.
Still, it doesn’t mean you won’t have enough time to relax, do sightseeing and visit new places. Trading is a great way to earn money while on the road. Here are a few particular types of trading you should consider while you are traveling.
1. Cryptocurrency Trade
The interest for cryptocurrencies has exploded in the last year or two, and the value of Bitcoin has been one of the hottest talking points in the world of finance recently. To get into this business, first you need a cryptocurrency wallet in which you store your coins. Of course, you don’t accumulate actual money in an actual wallet but instead use a virtual wallet to store coins represented by encrypted passwords. You’ll also need to create an account at one of the digital currency exchanges such as Kraken or GDAX. These are platforms you use to exchange different cryptocurrencies with other traders.
Another way to make money by working with digital currencies is buying shares of companies and trusts that own these currencies. That way, although you’re not directly involved in the cryptocurrency business, you can still make money if you know enough about it and follow trends. You could also decide to try mining, but that goes beyond mere trading, takes a lot of resources and investments and is a lot riskier.
2. Forex Trading
Forex is a global market for trading regular currencies. With trillions of dollars flowing through it every day, it is considered to be the biggest financial market in the world. The main players in this market are banks and large financial institutions, but there are a lot of individuals that partake in it as well. In a sense, you participate in this market every time you visit the exchange office. But you can also make some decent money as an actual forex broker.
Long story short, the point of trading currencies is to predict their fluctuations and sell those that are about to fall in value in order to buy those that are on the rise. A lot of factors influence these fluctuations, and you’ll need a comprehensive knowledge of the global political situation as well as of the state of different countries’ economies. If you’re new to the forex market, it’s usually recommended that you start with a pair of currencies that include that of your own country, since it’s assumed that you know a thing or two about its economic and political climate.
3. Day Trading
What makes day traders different from any others is the fact that they buy and then subsequently sell the same financial instruments within a single trading day. Sometimes it happens even within minutes or seconds. Day traders take advantage of small and quick price moves. There are numerous different strategies they can employ, but they all need to have an excellent knowledge of the market and be prepared to think and act promptly. If you decide to go into day trading, have in mind that you normally shouldn’t risk more than 1 or 2 percent of your account per trade.
4. Margin Trading
Basically, margin trading means that you’re trading financial instruments using someone else’s (usually broker’s) money. You can go this way if you don’t have enough money to get into the business, but still feel that you have what it takes to succeed in trading. Of course, you’ll have to put some of your money on the table as well, but the broker can give you a much-needed initial boost. You just have to make sure that the difference between the value of the security and the amount of loaned money always stays above the minimum margin requirement set by the broker.
5. Social Trading
Social trading is not another type of trading, but rather a trick you can use to help yourself with any of those mentioned above. It’s basically a social network for brokers, which you can use to check what other brokers are up to, learn from them and even pay them to copy their strategies. For an absolute beginner who wants to become a broker in any area, using social trading is a great idea.
All in all, whichever of these you decide to choose, there’s one thing to keep in mind. Becoming a successful trader might sound exciting, but it’s not all fun and games. On the contrary, it requires a lot of dedication, energy, and above all, knowledge. However, it can be a great way to make a lot of money while at the same time exploring the world, visiting new places and meeting new people.