As a digital nomad, there are plenty of ways to make money remotely. However, no activity beats these 8 ways to earn money from stocks as a digital nomad.
Leading a digital nomad lifestyle; that’s the ultimate goal for most of us. Think about it; you can travel the whole world and explore different places while still making excellent passive income! Being a digital nomad means that nothing ties you down to a specific physical location. Instead, you are free to roam the world and work remotely from anywhere.
There are plenty of activities that digital nomads can undertake to make money. However, the best and most recommended way to earn money is by engaging in stock trading. Consider these 8 different ways how digital nomads can make money from stocks.
Trade Cryptocurrencies
Cryptocurrencies are becoming the trend in the stock market. And while trading in this might sometimes prove to be risky, it can make you significant profits both short-term and long-term. However, you need to do your research first and acquire a thorough knowledge of how these work before starting trading cryptocurrencies.
For example, you can sign up for stock trading courses on Teachable and Udemy. And when it comes to the actual trading activity, use the best stock research tools to help you determine the best cryptocurrency exchanges to invest in.
Consider Day Trading
Day trading is especially recommended for professionals and experts in stock trading. This is because it has higher associated risks, which beginners may not know how to avoid. Therefore, if you are a proficient trader and have a good understanding of stocks, consider engaging in day trading to make a good profit on a daily basis.
Reinvest Your Dividends
Dividends are corporate profits (or payments) that are given periodically to eligible shareholders, based on their earnings. If you just started investing, the dividends you receive may seem too little.
Despite the seemingly low returns dividends offer, they play a big role in the huge growth of the stock market. For every dividend that you re-invest, you earn more shares. In turn, this compounds your earnings at a faster rate. Therefore, instead of spending your dividends, opt to reinvest these for long-term profits.
Sell Stocks at a Profit
This is the most straightforward way to make money from stocks. The classic strategy is to buy different stocks at a lower price and then sell them at a higher price. The more supplies you sell, the more profit you can make.
However, to make a high profit, you need to be patient. Please wait until the value of stocks increase, then sell them at a profit.
Employ Diversification
It is not a secret that stock trading can be very risky, even causing you huge losses at times. To minimize the risks and boost your potential returns in stocks, do not put all your eggs in one basket; employ diversification.
When it comes to diversifying their stocks, most investors choose two types of investments; stock funds and individual stocks. However, one thing about individual stocks is that they take up a lot of time and money to really succeed. On the contrary, stock funds diversify almost automatically, making them the better choice to invest in.
Try Short-Selling
Short-selling is the opposite of selling stocks at a profit. The strategy can be described as, “selling high, buying low.” In other words, short-selling involves borrowing stock shares from brokers and then selling them at a higher price. Then, you repurchase these same stocks later on, when their price drops. Upon returning these shares to the broker, you will have made a good profit.
Choose the Right Investment Account
To ensure success in your investment process, choose the right type of investment. But even more importantly, choose the right account to hold your assets. Why? Well, different accounts come with different profits and benefits. For example, some investment accounts offer tax advantages, such as tax-free withdrawals later on or current tax reductions. So if you are looking to make a good profit in the long-term, say, after retirement, you would do well to choose an account that offers these tax benefits.
Buy and Hold
You probably have heard of the saying, “Time in the market beats timing the market.” When used in stock trading, this saying implies a buy-and-hold strategy. In other words, rather than engage in regular buying and selling of stocks, you hold these for a relatively long time.
Engaging in daily, weekly, or monthly stock trading can indeed earn you some profit. However, such frequent trading can deny you good opportunities for making higher annual returns. Therefore, if you are looking to make significant profits as a digital nomad, you would do well to use a buy-and-hold strategy when trading in stocks.
Conclusion
Are you thinking of becoming a digital nomad? The best way you can make money is by trading in stocks. The 8 ways to earn money from stocks maximize your chances of earning higher profits in the stock market. Also, always remember to use the best stock research tools to identify the best stocks and cryptocurrencies worth trading in!
