Amid the worldwide economic uncertainty, many are turning to stock trading as a viable means of income. From the recently-unemployed to those teetering on the edge of joblessness, creating passive income is looking more and more of a necessity. But how do you build passive income in the stock market, especially as a newbie? Building passive income starts with choosing which stocks have the most potential to provide you with healthy and regular returns in your online trading portfolio. In this guide, we’ll look at online options trading, swing trading, and dividend stocks. Read on and learn more!
1) Online Options Trading
Online options trading is similar to stock trading in that you are still trading on the stock market. The difference? When you purchase a stock, you’re purchasing a share of the company, so you effectively own a tiny “piece” of, say, Apple or Tesla.
With options, it’s a little different. When you purchase an option you are purchasing a contract that entitles you to sell that stock at a specific price by a specific date. While there is much more you should know about trading options, for the purpose of this article, know this:
While it is possible to hold on to options for a long time, the nature of options trading lends itself to short term holds and frequent sales. Translation: options trading is one of the best ways to earn a regular income from the stock market.
Yes, online trading income is possible if you acquire the right knowledge first. Online investment courses are everywhere, but if you want a course specifically geared towards options trading, take our options trading course.
One important point you should understand about online trading income is that its short term. These aren’t long-term holds, Warren Buffet-style, so you won’t be sitting on these investments for years and years.
2) Swing Trading
Swing trading attempts to take advantage of the ups-and-downs of the market. Short-term holds are the key for swing traders, most of whom rely on complex metrics to decide when to buy and sell.
A swing trader can hold a position for weeks, but it’s not uncommon for a swing investor to hold a position for days, or even just a single day.
Swing trading is risky, though, and not for the faint of heart. Also, if you want to swing trade, you should be familiar with the factors they use to judge when to buy and sell, like:
- Fibonacci Levels
- Wolfe Waves
- Gann Levels
It’s enough to make your head spin! Though there is a significant learning curve, you still don’t have to be a wall-street fat cat or be fresh out of finance school to learn to swing trade.
Everyday folks with no finance background learn to swing trade all the time. And if you’re not afraid to get into the nitty-gritty technical details, you can make swing trading a viable source of online income.
By now you may be thinking, what’s the difference between swing trading and online options trading?
With swing trading, you can purchase stocks outright for the purpose of the quick flip. While some stocks are more appropriate for swing trading, you can swing trade many types of stocks, even currencies.
On the other hand, options are kind of an alternative form of stock, suitable for both swing trading and the occasional long-term hold.
3) Dividend Stocks
Ask any investor; dividend stocks are an essential aspect of any portfolio. Popular dividend-yielding stocks include:
- Safety Insurance Group
- 3M Co
- Extra Space Storage Inc
- Paychex Inc
- American Electric Power Co
- Altri Group Inc
Dividend stocks provide some of the best long-term investor returns. The consistent passive dividend income can create a snowball effect, vastly increasing the value of your holdings.
There’s no doubt that if you want monthly passive income, dividend stocks can make it happen. Not only is the regular income attractive, but dividend stocks tend to be good picks for the long haul; the fact that a company can pay out dividends is often seen as a sign of profit and stability.
When you’re choosing what types of companies to invest in for the sake of dividends, it will benefit you to go with tried-and-true industries like real estate, energy, and financial sectors.
Even at a 5% dividend rate, the returns can add up. Plus, one of the perks of dividend stocks is that they can be traded as options, too, helping you maximize their trading value over the short term.
Online Investment Courses
You may be wondering how one even begins to learn about a system as complicated as the stock trading system? The simple answer is, take a course!
Thanks in large part to the pandemic, people are flocking to online trading. Many online platforms, like Robinhood, have soared in popularity thanks to their free trading options.
Not only are online trading platforms an easy and inexpensive way to get started in the trading game, but many offer free online investment courses. Online investment courses help you understand the stock market landscape so that you can make your first trade with confidence.
Many platforms, like TD Ameritrade, not only offer free courses in investing, but they also serve as all-purpose research, education, and trading platforms.
Once you understand the basics, you may be ready to invest more in your stock trading education. At this point, it may be wise to learn options trading strategy from the pros at ConsistentOptionsIncome.com.
What makes the online options course different from other online investment banking courses is that you get a detailed strategy for regular options income.
The options course does not just dump information onto you and expecting you to fend for yourself. The step-by-step system walks you through everything you need to do to make consistent income through options trading online.
Learn With A Specific Plan
Online options trading can be lucrative if you know what you’re doing. Start with a plan in mind, and you won’t get lost or lose your hard-earned investment income.
Contact us today to see how easy it is to get started with options investing.