It’s important to work hard in life. The saying that you get out what you put in is definitely true. At the same time, it’s nice to generate passive income as well. This doesn’t mean set it and forget it. There are three opportunities listed below for generating an automated income source. All three require some research before getting involved. It’s also important to monitor anything related to your own money. While some work will be required on your part, the information below should give you a good head start.
Forex
In simplest terms, forex is the market for trading currencies. What makes this market so appealing to so many traders is that it’s open 24 hours per day. This gives you an opportunity to make money while you’re sleeping, so to speak. If you implement an automated forex trading strategy, you can do just that. A computer program will determine when to buy or sell a currency pair based on set parameters. There are many different types of parameters you can set, including price points, volume increases, and moving averages. Everything about automated trading on the forex market is technical. This means there is no emotion involved. Therefore, you don’t need to worry about emotional trading while you’re sleeping. Only a human is going to make an emotional trade, and this takes the human aspect out of the equation.
It’s recommended that you test your strategies before using real money. You can do this by back testing via paper trading. When you back test trading strategies, it doesn’t guarantee future success, but it does give you an edge. History tends to repeat itself in the markets. If you can find historical patterns in the forex market and then set buy and sell signals based on that information, you might not have to work hard at all in your future. This isn’t easy to accomplish, but it does happen. You can literally go from not owning a car to cut expenses to owning a yacht within one year.
Trading Software for Stocks
Most people don’t know this, but the majority of trades made in U.S. equity markets are automated. That’s because people have figured out that removing emotion is a benefit. In a volatile market, or with one volatile position, we tend to get emotional, which always relates to greed or panic. When traders get greedy, they often lose money. When traders panic, they often wipe out would-be gains. When you take emotion out of the equation, everything is based on technical indicators.
You can customize your strategy based on a list of technical indicators by using strategy building wizards. It’s recommended that you use stop losses, trailing stops, and profit targets. By setting these up, greed and panic will never come into play. You will be minimizing your losses. It’s also recommended that you hedge your account by using more than one strategy. Prior to launching your own strategy, be sure to use a platform that offers a trial period. If you find a trading platform that doesn’t offer a trial period, it’s a red flag and you need to go somewhere else. Do your own in-depth research on the platform and look for testimonials and positive reviews.
Cryptocurrency Mining
This strategy is a little more complicated and difficult to understand. It will be simplified as best as possible. The simplest version possible is that you’re mining for gold, hence the word mining. However, it’s not actual gold like during The Gold Rush. Let’s use Bitcoin as an example. Bitcoin mining is the process of creating new Bitcoin by solving a puzzle via a computer. You’re basically searching for these new Bitcoins to help maintain supply and demand and to keep the payment network trustworthy.
If that’s till confusing and you just want to know how to make money with Bitcoin mining, your job is to make sure that the network is a viable system and you get rewarded for doing the work to prove that. The only catch–and it’s a good catch–is that you’re not doing the work. You’re using cryptocurrency mining software instead. Two important notes here. One, cryptocurrency mining can be confusing at first. If you get involved, it won’t take long to grasp the concept and the finer points of the process. You just need to do your own research prior to moving forward. You want to be comfortable with your investment. Two, if you don’t feel comfortable with cryptocurrency mining or you don’t have the time or desire to do your own research, stick to one of the other options above.
