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Trading Online – 5 Things To Know (2020)

Here's how much money you can make by trading online...

trading online business

What is trading?

In terms of online business, trading is when you try to profit from financial markets using short-term strategies.

Trading is one of 19 types of online business and considered a Level X online business, according to our framework.

How can you make money online with trading?

Here are the legit ways I’ve found to make money online with trading…

Day Trading / Swing Trading

This usually means buying and selling stocks within a few minutes, hours or days.

You’ll find the occasional success story here, like Ryan Roots quickly earning thousands of dollars on trades via the Robinhood app…

  • Ryan Roots

  • Co-founder of Ralli Roots
  • $8,000+ profit from 16 days of trading

However, the largest studies done on day trading show that you’re unlikely to earn any money this way.

Poor Donnie here is representative of the typical day trader…

  • Donnie Day-Trade

  • Day Trader
  • $0 or even less

Forex Trading

Here you’d be buying and selling currencies online (eg. US Dollars or Euros), aiming to sell for more than you buy so you can earn a profit.

Justin Mueller has had some good results with this…

  • Justin Mueller

  • Serial Entrepreneur
  • $31,224 forex profit in 2 months

Crypto Trading

This is like forex except you’d be trading cryptocurrencies (eg. Bitcoin or Ethereum) instead of traditional currencies.

Tony from JRNY Crypto is one of the few regular crypto traders I’ve seen doing well…

  • Tony JRNY

  • Founder of JRNY Crypto
  • $3,802 profit in 3 weeks trading crypto

Pros and Cons of Trading Businesses

  • Potential for fast returns.
  • Easy to believe that you’re some kind of badass digital Wolf of Wall Street character… for a few hours at least.

  • High risk.
  • Very little passive income potential.
  • Lots of fake gurus and scams promising quick and easy success.

Is trading a good way to earn a living online?

From what I’ve seen, lots of people try to earn a living by trading online, but very few seem to succeed. 

If you poured the same time and effort into building a true online business – see Levels 2-5 – I suspect you’d get much better results.

Trading Resources

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