How do you know if your side hustle is a good choice?
There are two needs every side hustle must fulfill. You need to be able to make money and you also must enjoy your part-time effort.
Day trading can fit those needs for a lot of people.
Is Day Trading a Good Side Hustle?
Yes and no. Day trading is a great and very profitable side hustle for those who enjoy the high-paced, high-stakes atmosphere of trading. Those who are risk-averse should either start slowly or think about a different side hustle.
What is Day Trading?
Day trading is the act of buying and selling investments within the same day. Day traders look for stocks, bonds, and other investment opportunities that are likely to fluctuate during the day. They watch assets and purchase when it seems they are at their lowest point. Once they reach a higher point, they will then sell.
Day trading involves watching markets, paying attention to news, and studying price charts. There are bots and apps that provide some of this information. Still, much of it needs to be done quickly and personally as bots are unlikely to recognize the volatility caused by industry news and financial reports.
Because day trading takes place during the day, you will find difficulty working a typical nine-to-five job while also putting in the amount of effort needed for a successful day trading side hustle. It is better for those who work evenings, weekends or part-time.
How Much Can I Make Day Trading?
A day trader can make a fortune or nothing at all. It depends on how much time you put into it, how much risk you're willing to take, and no small amount of luck. Some sources state that you can make as much as $5,500 per month, while other sources state you are more likely to lose money.
If you enjoy day trading and do your due diligence, you can make five to 15 percent of your initial investment each day. If you have $30,000 to invest, you can expect to make about $1,500. That sounds great for one day of work, but you also need to be willing to lose that $30,000.
If you search for honest answers about how much an average person makes day trading as a side hustle, you will not find much. Day traders are notoriously private about their gains and losses. A few day traders have admitted that they make about $500 per day each day they work part-time.
What are the Risks With Day Trading?
The stock market is volatile. Even full-time, seasoned day traders can find themselves losing more money than they make. It's a gamble, but if you're willing and able, it can be one with huge rewards.
Successful day traders will see immediate revenue, but they will have an overall lower return than those who invest in long-term assets. If you have money to invest in day trading, you should weigh the pros and cons of day trading vs. traditional investments.
What Are the Costs of Day Trading?
There are some costs associated with day trading other than the purchase of assets. You will have to pay fees for every purchase. The amount of the fee depends on the platform you use and the type of plan you choose. You will also have to pay capital gains taxes.
You will need to study up on capital gains before you start trading so you know exactly what to expect when it comes time to file your taxes.
Get Started Today!
Day trading is not for the faint of heart. However, if you're daring and want an exciting side hustle, it may be the perfect fit.
What do you think about day trading? Is this something you would consider? Let me know in the comments.
Day Trading Resource
There are many resources out there to help you get start day trading. I already mentioned this course, but there are also books you can read that will also get you started.
Please note that these are only resources to get you started. To be successful doing this side hustle (or any side hustle) requires you continue educating yourself.