While businesses are closing down, the economy suffers, and every one is cooked up inside their homes, either self-quarantining themselves or rolled up in bed with a bunch of hand sanitizers and toilet paper, the entrepreneurial mind may find unrest. Perhaps it's not just the enterprising that's yearning for some money-making activity, but all those who sit incomeless while the world is in war with the dreaded coronavirus.
I've heard so many stories recently of businesses, especially in the food and hospitality sector, that couldn't pay most of their staff for an entire month now. And it's not just the small-time mom and pop restos that are affected -- huge airline companies and casino operators have been the primary culprits for laying off workers. Legacy car manufacturers are also scaling back, particularly in Europe.
With all these bans and restrictions, one could wonder if there's light at the end of the tunnel. We all want refuge from the endless worries brought about by the virus, but this is just a time of great uncertainty without a set timeline for when things may turn better.
One of my "few" good friends told me (as we often talk about the markets) that the best activity to do right now while everyone's forced to literally "Netflix and chill" is to trade the financial markets.
I couldn't agree more.
Heck, there's just nothing to do to make money unless we talk about an already popular video influencer who just regularly collects checks from YouTube, but even if that's the case, what content are they going to produce inside their house these days? Oh yeah, there's "mukbangs," "let's play" and "asmrs," but that's beside the point.
Not everyone can be a YouTube star, but everyone has a chance to make money in trading.
Now, it may sound a little "salesy," or it may seem like a tactic that brokers pull out of their bag of tricks to lure someone to trade. And one could argue that trading is not for everyone (true, but like I said, making videos isn't either).
But why I think there's a case for trading is because of the reasons I have stated below:
So, perhaps the top reason why trading is the best money-making activity anyone can do at home is that it's very convenient to set up.
Compared to restaurants, food stalls, or any shop that requires a physical premise, staff, permits, and other costs, trading doesn't need more than a laptop or a mobile phone to partake in the global financial markets.
Getting started is also a breeze since the account opening process takes place online and completes within a few minutes to a few days.
2. Anyone can do it
Most people look at trading as something that is too technical and complicated (which it is), but that doesn't mean that it's reserved for only a select few individuals.
Anyone can be a trader.
Hold on, let me clarify that so it leaves no confusion: Anyone who can learn the skills that are necessary to trade properly can be a trader. This means that the activity of trading is not limited to one's gender, educational achievements, IQ level, or even age.
Furthermore, the market couldn't care less about who the person is because it will move the way it wants to move regardless. The drop in stocks this month proves that.
The market didn't care if it was Jeff Bezos or some random investor down the street, it just shed off all its gains since the beginning of President Trump's term.
3. Low Capital
Another attractive feature of trading is its low-cost entry. The capital required for any brick and mortar business will almost always exceed the amount of money needed for opening a trading account.
In trading, a few thousand dollars can go along way for an investor like being a part-owner of a company with a proven track record like Apple, Google, or Facebook.
That amount of money can also be used for taking advantage of currency fluctuations in Forex trading to make a profit.
4. No need to hire anyone
The low-cost entry also encompasses the non-necessity for hiring staff -- unless its an entire business dedicated to that purpose like fund management or if a trader requires researchers.
But for the most part, retail trading doesn't require any other person other than the trader himself.
5. Flexibility in entering and exiting
Stock Traders who don't like a particular company's quarterly performance can jettison their holdings in the stock market as soon as they see fit. While currency traders, on the other hand, can move from one high yielding currency to another in virtually a blink of an eye.
This kind of flexibility, though, is absent for most business owners. An entrepreneur can't just switch to another business unless he has ample capital to do so.
With real estate, it's also not easy for property investors to relinquish their exposure in the market, especially when buyers dry up.
6. Money-Making Potential is High
As with businesses, the upside potential in trading is also high relative to the initial capital. An early position in a good company or a currency that is about to enter a multi-month trend can yield bountiful profits for the trader.
In addition to that, brokers who offer leverage and margin accounts enhance a trader's capacity to earn big since it would necessitate a trader to put up just a fraction of the actual position size.
However, it is also worth noting that businesses aren't devoid of this advantage, but against trading, the possible rewards in proportion to the startup costs are lower.
Note: Trading with leverage is risky.
7. Not bounded by any location
Finally, the best of all is that trading can be done in the comfort of one's home. It's not bounded by a defined location thanks to its already virtual setup. While we see businesses, TV shows, and other operations that rely on a physical location switch to a work-at-home arrangment, trading wouldn't be a stranger to the entire thing.
This means that people engaging in this kind of activity need not worry about getting infected with COVID-19 as it's pretty much an isolated activity already.
So these are the reasons why trading is the best money-making activity that anyone can do at home while we try to shield ourselves from the coronavirus. Still, it is crucial to keep in mind that trading requires mastery and constant improvement. Sure, it's for everyone, but it demands long hours of learning and application before a newbie trader truly gets the hang of it. Trading also needs an investor to be proficient in managing risk because that's component of successful trading.
The coronavirus is not showing any signs of stopping. The only thing we can do now is to hope that the current measures are enough to contain the infections. So, if it's still not clear to you dear reader, please stay at home -- and trade!