Today, our focus on earning income through trading. So, why is trading the most rewarding way to earn income? Several reasons immediately come to mind; let’s start with a few selfish reasons.
You can trade from nearly anywhere. All you need is a computer and an internet connection! I’ve had several students in class who have decided to roam the country in a recreational vehicle, and trade from wherever they decide to park that day/week/ month. Trading from a beachside in the winter or a mountain in the summer sounds pretty appealing to me! By the way, did you know that there are many markets/exchanges around the world? Staying put in your home country is one option, but I am a fan of being able to trade from anywhere on the planet. With the spot forex market, and other 24 hour markets out there, you don’t have to change up your daily schedule based on where you are living. Waking up in Hawaii is one thing; waking up at 3am to trade the United States stock market is another thing entirely! People who decide to start a regular business with a permanent location are a bit stuck. I personally wouldn’t be a fan of opening a business in the far north of the United States where the winter is cold and snowy for months. If you like that type of weather, more power to you, but it isn’t for me.
Overhead is cheap. The only capital you need is a trading account and the proper education. How much you need in a trading account to earn a living depends on your skill as a trader; knowing how to trade is an invaluable asset that can never be taken from you! Opening your own business obviously takes tens if not hundreds of thousands of dollars, especially if you are going the franchise route. Using their knowledge definitely makes sense for a new business owner, but do you really want to work for someone else forever? The overhead of buying into a franchise, leasing a space, hiring people, etc. etc. is a series of headaches I personally don’t want to endure.
Being in control of your own schedule and decisions! There are days when I don’t feel like trading. Perhaps I have to take the dogs to the vet, go shopping, or watch the World Cup soccer tournament at a local pub at noon. I don’t need to ask for time off; I get to do what I please. Running an office/franchise definitely ties you down, at least a bit. On a side note, if you are normally a day trader and you want to take a few hours or days off, you could certainly trade from longer time frames as a swing trader which will slow down the pace. Checking your trades every few hours allows you to live the rest of your life as you see fit!
Get paid what you are worth. In nearly every class, someone complains about their previous corporate job where they haven’t received a raise in years, or don’t believe they are earning what they are worth. In trading, you get paid based on how good you are as a trader. Now, I realize not everyone is comfortable with this benefit; some would rather slog through life earning what they are paid. I personally think that being paid what someone else thinks I am worth is a bit of a drag. As a trader, if I believe I am worth earning six or seven figures, I can build up my account over time, expand my skillset, and earn that much money. If you are working for a large corporation, not too many non-executive jobs will ever pay you six figures. Even fewer will ever earn seven figures working for someone else! Are there any less selfish reasons that trading is the best? The answer is yes. Now, these other reasons might fall into the above categories, but please bear with me.
Philanthropy – As people become more and more successful, they often choose to “give back” to a cause that is near and dear to them. Volunteering your time is one noble choice; donating money is almost as valuable, but not as rewarding (again, in my opinion). Donating money to an animal shelter or volunteering your time at a hospice center are both great things; everyone has their own cause. Trading allows more flexibility in how you give back.
A legacy for your family – Successful traders often leave a bit of money to family members. However, another option is to teach your children, nieces, nephews, etc. the skill of trading and give them a small trading account to start with. I understand that college can be a great thing; however, the massive amount of student debt that can be accumulated, plus the high probability that the student might not even find a job in their chosen field might be cause to reconsider college. I can’t even imagine what my life would be like today if I learned how to trade when I was a teenager instead of at age 30!
So there you have it! A few reasons why trading the most rewarding way to earn income. Portability, cost of getting started, flexibility, and charitable reasons convinced me. There are probably many more reasons not listed here, and each of you will have your own.
Until next time,
Written by Rick Wright, Online Trading Academy Instructor. Rick Wright’s goal as an Online Trading Academy Instructor is to accelerate the student’s learning curve, whether they are interested in High Frequency Trading or Investing for Beginners. He teaches classes on Online Stock Trading, Forex Trading and Futures, among others. Rick studied economics and psychology at Iowa State University, and entered into the brokerage business in 1992. He earned the NASD Series 4,7,9,10,24,55,63, and 65 licenses. He helped grow an online brokerage business which was eventually sold off. Rick has also held positions as broker, branch manager, and several VP positions in the brokerage business. Rick began trading equities in 1997, and was introduced to the Forex market in 2002. Currently trading from home in Dallas, Rick is also a frequent contributor to various TV and business talk radio shows.