Do you want to make money trading and don’t know how?
Don’t worry, you’re not the only one.
The vast majority of those who trade do so because they want to make money with it. If not, why would they get involved in this seemingly exciting activity but at the same time boring?
Yes, I say exciting and boring because, despite the aura that trading has, in the end, when you spend all day glued to the screen, it turns out not to be as fun as we thought, but I recognize that the desire to get out of the rat race of working for someone else counts a lot, and many would rather spend those hours on the screen, “hitting” with the bars of the graph, than having to put up with a boss in an office or even teleworking.
Well yes, that is the path that leads many to look for a way to earn money with trading:
Get out of the martyrdom that is working for others.
In addition, trading is an activity that promises profit without having to put in much effort.
After all, once we have our foolproof system, who wouldn’t pay to spend a few hours in front of the screen for a living?
It’s a no-sweat job, and apparently without too much nerve.
But I’ll be honest.
Not everything is as pretty as it seems at first glance.
Someone who breathes trading on all four sides tells you and I tell you that this trading is very, very complicated.
Can you make money trading?
Impossible no.
But very complicated yes.
So well, I am not going to tell you a magical story about the secret trick to make money trading.
That would be very easy right?
Besides, no one would do that, or at least not easily.
Now what I am going to tell you is about the 12 ways or styles that we can use to, perhaps, be able to earn money with trading.
I am also going to show you some interesting examples, which there are.
Let’s go there.
1 Earn money with day trading
How to make money with day trading?
This is the one million question.
And millions of people are the ones who have paid fortunes to achieve this secret, but few are the ones who have achieved it, mainly because many times – the majority – of those who sell these “day trading potions” were tricksters.
But hey, that’s life and that’s trading.
To make money day trading we are supposed to win more than we lose on a fairly regular basis.
For example, if we make 200 trades a month, then win 120 and lose 80. In this case, suppose that commissions and other hidden trading costs take 20 winning trades, but we would still have 20 net trades left to earn money in the month. If each winning operation is €200 or $200, then we would already have a method that gives us decent money, especially in some countries. In the United States, it certainly isn’t much, but in Colombia it is.
The thing is, to make money day trading you have to be a trading machine.
Honestly, it is the most difficult way to make money with this. A long-term investment is the easiest, but we already know that many people find it boring, and it does not promise great profits in a short time either.
If you want me to give you some advice to try to make money day trading, it is the following:
- be very patient
- Experience is the best ally
- It’s a long-term race
- Don’t spend a lot of money on it.
- Save most of your money and energy for other things. If you do well in day trading, the profits will come but do not spend $50,000 at once if it is all you have saved. You will most likely lose
- Don’t listen to too many siren songs from people who promise you things that are too good to be true.
2 Make money by scalping
This is simply an extreme variant of day trading, which is very popular with those dabbling in the high-frequency arena.
Normally, it is assumed that operating a lot every day is how we are going to earn more money.
However, the more you trade per day, the more commissions you pay, and that in the end counts a lot, more than you think. That is why I tell you from the outset that scalping is not a panacea.
To make money with scalping you are going to have to sweat a lot.
The fame of this style comes from the former operators of the trading rooms of the big firms in New York or Chicago. What the “legends” of scalping don’t tell you is that they made that money doing a lot of operations on the “other side” of the trade, as market makers.
Normally, if you make 100 operations a day charging commissions, if in the end those 100 operations are leveled, it is you, the one who collects the commissions, who earns money. It is understood?
I am not telling you not to try to scalp but I can tell you in advance that it will be very difficult for you to become a successful scalper in the long term.
Good luck with that.
3 With trading courses
This is one of the star ways to earn money trading, but not so much for what you might think, which is that they will teach you how to earn money quickly.
What usually happens is that the best way to make money through trading courses is to teach them. This is where we get into dangerous territory because as I dropped earlier, many of the courses are scams that promise wonders and don’t prepare you to become a day trader. That is why I tell you that if you are going to buy courses, be careful.
A good site to learn basic trading is Tradingdesdecero, which has an affordable basic course with which you can learn enough if you seem very new to trading.
In the world of trading, many professionals are exclusively dedicated to this. Or to sell courses.
You don’t earn badly, but many people are scammers.
In Spanish, there are many famous trading courses:
- Josef Ajram
- novatotradingclub
- trading academy
- JonTrader
- Francisa Serrano
- Borja Tube
- And many more
Which of these is good and which is not?
Well, I can’t tell you for sure, because it would be saying something without being sure, but I can tell you that 100% sure, some of these do not deliver what they promise, while others may be more decent.
By not giving what they promise, I mean that if you pay 1,500 euros or dollars for a course in which they promise you that you will become a professional trader, and a year later you see that your account is 20% below the initial balance Well, obviously you have been fooled.
In the Anglo world, there are even more brutal courses:
- warrior trading
- learntotradethemarket
- Tim Sykes
For example, WarriorTrading, with its mentor Ross Cameron, only with the annual visits that it can more or less have on its website, easily more than 30,000 a day, I could venture to say that it bills hundreds of thousands of dollars a month only in the sale of courses.
Do you think that Ross Cameron needs to operate earning that money with courses?
I don’t think so.
Tym Sykes, for example, has been saying for a long time that he became a millionaire trading penny stocks. The videos of him are well known. Will he be as good at trading those stocks as he is at making videos?
4 Forex Trading
Forex trading has attracted a lot of people to the world of online trading.
It was a time when many brokers appeared that allowed opening accounts with hundreds of dollars and euros and operating with leverage of more than 100:1 with very low lots, and that made many people fully immersed in the world.
Things have changed a bit over the years and with the generalization of other types of trading, as well as an enormous increase in competition, especially from the crypto world, but there are still people who are specialized in Forex, and that is It must be recognized that it has its advantages and its peculiarities.
One of the methods that people looked for the most to earn money was to trade fundamental news such as interest rates in Europe or the United States; times when there is tremendous volatility and it is easy to move the price a lot, but it is also easy to lose a lot of money.
Today it is a more regulated market, especially in Europe or the United States, and it is no longer possible to use so much leverage. In Europe, it is 30:1 at most, which is still quite a lot.
Within all trading instruments, it is one of the most complicated to earn money, at least it seems so to me.
Because?
Well, due to the absence of large trends clearly, something that we can find in shares, indices, raw materials, or cryptocurrencies. This makes it a very difficult market to trade, and if not ask hedge funds.
However, it can sometimes give good opportunities in certain pairs.
One of the best things about Forex trading is that it is very flexible and you can trade very small contracts, which makes it ideal to risk little while learning, something that cannot be said of futures, for example.
5 Stock trading
This is the asset par excellence of the financial markets and of capitalism.
What would capitalism be without companies?
They are the heart of the system.
Well, many people specialize in trading these assets to make money.
In this case, I think that it is one of the best ways to earn money with trading, although if you rush me, it is not so much with trading as it is with investment.
Is stock trading good for day trading?
In my opinion no, but hey, if it goes well for you, congratulations.
Stocks are more suitable for medium-term trading and long-term investment.
The reason for the latter is the trend.
And you know, that the trend is your friend.
This is what the best-known investors in history such as Warren Buffett have done, and also speculators such as Jesse Livermore, the quintessential stock trader.
This is a modern method of generating income from trading.
How could it be otherwise?
After all, we are in the era of the social, social networks and the so-called inclusive capitalism.
With all this, it is surprising that what is known as social trading is not more widespread than it is. But do not think that there are few options because in one way or another most retail traders have some kind of social connection today, be it through brokers like eToro or Darwinex, or social trading networks like MyFxbook, ZuluTrade or TradingView or even forums like Reddit or Bitcointalk.
By the way, now that I named Reddit, the one that got involved with the issue of the short squeeze of the Gamestop action, one of the most brutal cases of this type in the history of the Stock Market; and it came from a community of Reddit traders, that of WallStreetBets. The story is not wasted.
Here’s a Twitter thread explaining it:
To tell the truth, this episode would enter one of the ways to win trading that I will name later, which would be “tips” or “advice”, although not really in the exact sense of the word, because after all, this attack The mass trading attack was reported by a very large community of traders who were all in agreement, in what we can call a mass social trading attack.
This WallStreetbets story may not be the best way to describe how to make money with social trading, but it does serve as an example of the importance that this type of trading is having these days.
With social trading, you can earn money in several ways:
- Running a social trading community and charging for subscriptions or ads
- Being copied and paid by the broker, as happens in eToro with some well-known investors
- Becoming a trading guru and with it later selling mentoring
As we can see, there are several ways to earn money with this copy trading.
A matter to be studied more carefully by those interested, without a doubt.
7 swing trading
I call it that but you could also call it medium-term trading.
This style would be the opposite of day trading, since the objective here is not so much to operate a lot, but rather to operate more calmly and, if possible, look for the trend, and sometimes, break it.
With this type of trading, you could try to find those trends that are so good that they give us assets such as stocks or cryptocurrencies, and sometimes raw materials.
It sounds like a more boring type of trading than day trading but it doesn’t have to be.
What it is, of course, is calmer trading.
In my opinion, it is better than day trading, but for tastes colors, you know.
8 Earn money with algorithmic trading
Before I said that this is the age of the social, but it is also the age of the machine and that in trading translates into what we know as algorithmic or automated trading.
This type of trading began decades ago on Wall Street when the first computers were made available to the public. Many traders investigated how to automate their techniques and some achieved interesting results.
This type of trading was very much in the minority until well into the first decade of the 2000s, but with the rise of Forex trading, and together with the well-known futures trading, it became incredibly popular.
The blame for this popularity was due to Metatrader 4 and other similar platforms that contributed a lot to the democratization of trading programming.
With the advent of cryptocurrencies, this is the end of the day, and now algorithmic trading is the order of the day.
Surely many who have not tried this believe that it is an infallible system and that large amounts of money can be made just by programming the correct system.
I’m sorry to disappoint you, to those who think this, at least.
This type of trading is not a panacea.
The main problem with it is that the theoretical results of the backtests never translate into reality, and what seemed like good strategies, in theory, ended up being complete disasters.
I’m not saying that it doesn’t work or that you can’t do good things with it, but don’t think that doing algorithmic trading is so easy to get money regularly in the market.
However, I have good news for you.
9 Money programming for trading
This is the real trading mine for lovers of algorithmic trading.
The possibilities offered by programming skills are many.
You can design from strategies to trading scripts and all of that you can sell.
Of course, then there is the ethical issue of the matter since there are many people who start selling trading systems as born winners, and then they turn out to be a catastrophe, and in the end whoever buys it not only loses their capital but also the money you paid for the robot.
However, not everything is fraud in this field and there are very good possibilities, such as, for example, someone dedicated to programming specific algorithms for a platform, or a broker, etc. True, it is not winning by trading itself, but it is thanks to trading.
Then, imagine that by programming you can make a very good mobile application that can be used by traders from all over the world. With things like that you can make a lot of money and then put it to work for your trading.
A good general language for the trading world is Python. Here you have a video where they give you a small introduction to it:
10 How to make money trading cryptocurrencies?
This is the new fashion of recent years.
It seems that cryptocurrencies are here not only to stay but that they are somehow going to be the central part of the new future world monetary system. That is already enough to see the interest that they are creating in the world. But this interest does not come from nowhere, but also from the enormous growth in the price of Bitcoin, which in a few years has risen from less than 100 dollars to 40,000.
These types of parabolic rises are what create this unusual interest in assets, as episodes such as the South Seas Bubble and other similar ones remind us.
This has spawned countless players in the wild west of cryptocurrencies; many of whom are scammers, it must be said.
As always happens in these cases, many services have come out that promise extravagant things, such as 100% profits and more, guaranteed every year, when we know perfectly well that this is a lie.
So first of all, be very careful.
Another thing is that this type of market with such spectacular increases does not offer good opportunities to make good profits in the long term, especially with Bitcoin, which seems to not stop rising.
But beware, drawdowns of 90% sometimes come along the way.
Let’s see who swallows that without giving him a patatús.
You can make money with cryptocurrencies, yes, but be careful.
There are many cases of scams that appear in this market
11 Make money with trading signals
This is another field of the trading world that has expanded like mushrooms.
Since the beginning of history, betting tipsters have always existed. Well, this is the same but for trading.
In recent years, with the unstoppable progress of trading, this has also grown in parallel.
In theory, it is not legal to give investment advice and that is why those who make these trading signal channels are careful to say that they are only information but never investment advice. Although this does not apply to all countries.
Well, it turns out that many people earn a lot of money with these types of channels, especially on Telegram, where they have tens of thousands of followers, and through these recommendations, they sometimes manage to get those followers to pay subscriptions to follow said information. (You can see on Telegram, where I talk about the ways to earn money with said app).
Of course, you will wonder if the same thing happens here as with the subject of the courses, and the truth is that yes. Many of these trading channels and tipsters are frauds, but what can we do, that’s the online world. That is why you have to be careful what you are going to do when joining a channel of this type.
However, money can also be made without scamming, but simply by creating trading information channels for which a subscription is charged. They do not have to be exclusively signals but other issues such as general market comments, etc.
Earn money trading without investing?
Yes of course.
As we have seen in these 12 methods of “how to make money with trading”, there are several ways to do it, and they do not necessarily require trading.
For example, to program trading algorithms it is not necessary to invest money in the market. You will have to invest it to train you, that’s how it is.
The same with the subject of signals or creating any social trading group. After all, there are people who only by doing virtual trading get a large number of followers and then can generate income by selling them something, such as courses, mentoring or simply advertising.
Another way to trade without money is by using these virtual accounts, but by the simple fact of doing so, you are neither going to make money nor lose it, but rather learn, which is not little.
Imagine that you have Ross Cameron’s Warrior trading website, which I mentioned before; and you have a private trading room where you comment on your operations, and you sell the subscription to it for $100 per month. If you have 1,000 registered users, you bring in $100,000 per month (this is a hypothetical figure).
How much did the owner of that website need to invest in trading to earn more than 1,000,000 dollars a year?
Probably not a lot.
How much can you earn with trading?
Look, I think you shouldn’t worry so much about this question, honestly.
The vast majority of those who say that you can earn $ 2,000 a month with a method and blah blah blah, are pure smoke.
Don’t listen to that.
In trading, there is no salary.
No two cases are the same either.
Some people have more money and others have less.
To be honest, it will be almost impossible for you to make a living from trading, especially if you start with little money.
The most you can hope for is to earn, say, 10 or 15% a year on a more or less regular basis, and that is if you are a great trader.
To live with those returns, I think you should have an amount that can allow you to earn a decent living in your country.
For example, if you live in the United States, I think you would need about $800,000 to generate about $80,000 a year, which isn’t much in that country either, and then you also have to take taxes off.
If you live in Spain, with 400,000 of capital, perhaps you could earn an average of 40,000 a year, and with SEO you can live more or less decently.
| But remember what I said before about the example I gave in the previous section: it is easier to make money selling things than trading. |
Conclusion – What are my favorite ways to make money trading?
Well, they are the following, in order of preference:
- With stock trading in the medium or long term. No day trading.
- With indices trading in the medium or long term.
- With cryptocurrency trading, especially Bitcoin, in the medium or long term.
- With the trading of raw materials in the medium or long term
- With Forex trading
Stock trading takes the cake, hands down. More than anything because of the brutal tendencies that exist in many actions. And it is also that we have a choice: thousands and thousands between the markets of America, Europe, or Asia.
Cryptocurrencies have also been giving very good opportunities for years and it is something that cannot be missed while it lasts, of course.
Forex trading is my least favorite, honestly, because like I said, long-term trends are more complicated.
Then, if you have read the entire post, you will have realized that in reality, making money with trading is not easy at all and that it is much easier and more affordable to do it with things related to trading, such as courses, trading rooms, «signals», face-to-face mentoring, robots, etc.
I hope you liked the entry. If so, I appreciate it if you share.
