If you are like the rest of us, living through the quarantine can be rough. Not only can you not go to the movies or to the store, but many people have been put out of work due to the crisis.
However, just because work might be slow does not mean you have to live off your savings while not making any money. In fact, there are quite a few ways that you can make some money working from home to ease your financial burdens.
Day trading is one way to get some extra income. Despite what Hollywood may tell you, you do not need to be a genius to make money day trading. All it takes is some basic stock knowledge and some patience.
So we are going to cover some ways that you can make extra cash during this quarantine by day trading stocks and other securities.
Trading Individual Shares
The most basic way to play the market is to buy and sell individual shares. Individual shares are at once the most low-cost but also the riskiest ways to invest. However, with small amounts, it can be relatively easy to make some money flipping individual shares.
One way to go about it is to pick some stocks that have good specs and hold onto them for at least a month or so. If you see the average share price rising, then selling those shares to make money might be a good idea.
One important thing to look for is the moving average. Most stock tracking platforms have technical indicators including moving averages that you can superimpose over stock trend data. If a stock rises above its 200-day moving average it might be a good idea to sell.
Commodities are one of the more interesting types of securities to sell because they tend to be more stable than stock in the long run. Things like gold and silver are always valuable and can serve as a store of value when a country’s fiat currency has fallen. That is why so many people invest in precious metals and other physical commodities when the market is depreciating.
Other types of commodities include agriculture, energy, and more. Commodities can be a huge win but they can also be very volatile. A given commodity can be doing very well one day and then be performing poorly the next. So invest in commodities carefully.
Cryptocurrency is one the rise and is a fertile investment vehicle for many people. Cryptocurrencies like bitcoin, litecoin, and Ethereum are popular cryptocurrencies that have massively risen in price in the past few years. Cryptocurrencies are a risky investment as they can change value very quickly. However, you can time your crypto trades right and you can limit the number of losses you might sustain.
There are over 3,000 cryptocurrencies out there, but only a few are actually a good idea for day trading. Fortunately, there are a ton of databases online where you can keep track of all the different cryptocurrencies and their current trading values.
Money making courses are a relatively new fad that has popped up in recent years. Money making courses are not direct investments, but give you the tools to help you make smart investments. Money-making courses are about education. Money-making courses can not only help you figure out stock trading fundamentals but many of them also will give you recommended stock picks to flip for a profit.
Make sure you thoroughly research any money-making courses you buy. There are a lot of money making scams out there who will take your money and never compensate you with information or help.
Penny stocks are defined as shares that have a value of less than $1. Penny stocks are often the very first thing that people invest in, mostly because they are so inexpensive and the risk of loss is relatively small and non-serious. Penny stocks may not be able to make you much money, but they can be an invaluable resource for learning the ebb and flows of the market. The good thing about penny stocks is that you can buy a bunch to experiment with. If your investment goes poorly, then you will not be out of a significant amount of money.
Options are a good yet underutilized investment vehicle. Day-trading options are a lot faster than day trading stocks and there are a lot of vehicles you can buy options on. The best time to buy is a week before a big company releases its earnings, and then sell the day before it releases the earnings. This will give you a nice wave to ride as people clamor to buy your options for a successfully performing company.
Skylar Hammond is a writer for the True Trader group who specializes in topics such as stock trading, personal finance, and forex. He focuses on helping beginners and experts alike learn more about the market and improve their trading skills.