Learn About the Three Best Ways to Make Money in the Financial Markets

Some questions I have been asked the most during all these years I have been writing about financial markets are:

What type of trading is the best for me?

And others like:

Where do I start?
I work 12 hours a day, how can I make money in the financial markets?
Which is better, One-minute or One-day graphic?

And so many more, but all related to one of the most critical uncertainties you face when you start trading:

Which methods do I have to make money in the financial markets and which one suits me the best?

Whether you are new to this or take a while, you will have realized that you have more than one way (and more than two) to take advantage of the financial markets.
And that’s what I’m going to talk about. To help you decide on a path to follow, or for several if you consider that you have the temporary and economic capacity to diversify.

But I will not talk about products (CFD, ETF, options, Forex, stocks, etc.), but operating styles.

First of all, I want to say that there are more ways to monetize your money than the ones I will comment, but these three are the most widespread.

Let’s go.

Swing trading

I start here because it is what I manage best, in what I consider myself a specialist and what I have been teaching for years. The swing trading is the type of operation in which you try to capture movements specific price throughout days or weeks. Depending on the market situation, the operation is based on some objectives or others.

This type of trading allows you to earn money in both bullish and bearish periods.

What availability does it require?

The good thing about swing trading is that it does not force you to be aware of the graphics at all times. You can dedicate the time that your daily life allows you, without it costing you too much effort. With a quick daily review of 20 minutes, it may be enough. There will be days that you will need a little more, to track the market, for example.

But there will also be weeks in which you review your positions only a couple of times, to adjust the stop loss or just see where the price is. One of the significant advantages for me is that, apart from reporting benefits, swing trading is a very bearable entertainment and nothing stressful, as can be other types of operations.

As you can see, swing trading will hardly affect your work, family, friends, other hobbies, etc.

Therefore, if you intend to trade in an active way, but without having to cut a lot of time from your daily life, swing trading is the best option.

How much money do I need?

Here you have to take into account a scenario before starting to earn money, in which you will also need to invest capital. I speak of the learning stage. And as for learning, I do not mean just training with courses, tutorials, books, etc. I mean the process of learning by trading with a real account. For this first stage, 600€ would be a good amount (it’s with what I started), but if you can start with a little more, better. To minimize the impact of the commissions.

If you want more or less concrete figures, I would say between € 600 and € 2,000 to start learning are enough. From there, once you get registered, the bigger your account, the higher the weight of the benefits and lower the commissions.

Both, in the learning stage and in the clear and straightforward operating stage (although you will never stop learning), you never have to put at risk money that you need.

Here in this article, you have in more detail the approximate amounts of money you need to trade in the Stock Exchange depending on your objectives.

Long-term investment

The long-term investment is the way to monetize your money with little effort.

This way of operating is more focused on saving for the future instead of seeking the short-term benefit.

Although it is the ” safest ” option of the three, it is the one that offers the least profitability a priori. You can not have everything.

For me, it takes a great deal of weight in my operations, along with swing trading, since it allows me to diversify part of my portfolio without eating my head too much.

What availability does it require?

That it be a more passive operation does not mean that it is carried alone.

You have to be aware of the market and know very well when to enter.

A very good thing comes with the fact that you do not have to worry about objectives, stops outs, stop loss management, etc., which frees you a lot of workloads.

The time you need to operate in this way is very low: What it costs you to execute a purchase order in the broker at a few moments of the year.

Now, at least you have to use a couple of minutes a day to check the health of the market and see if there is an opportunity to enter.

It’s not much, but you have to do it.

Long-term investment is the best option if you do not have time to learn a trading method and put it into practice consistently.

It allows you to get an extra return on your savings.

As I do, even if you have time to do trading, do not discard this option to diversify. Conversely, if you have enough capital, take it very seriously.

How much money do I need?

Here there is no minimum as such.

You can start investing by buying an action or an ETF.

You will pay only the purchase commission and, if that value grows within a few years, you will collect your benefit (apart from the dividends that you have obtained).

Although of course, Always you need to have liquidity which allows you to diversify and invest different amounts depending on the occasion.

If you want a specific figure, I’ll make it easy for you: That money you have in a stopped savings account, that you do not know very well what to do with it and that you will not need in years.

Day trading or intraday trading

The day trading is the way to make money in the financial markets that more effort required.

As its name suggests, are operations that have their entry and exit on the same day.

If you want to devote to intraday trading, you have to be clear that you will spend too long in front of the graphics without being able to do anything, just waiting for the perfect opportunity to appear.

With this, I do not mean to waste time, much less, just that you need absolute dedication and extensive experience.

It seeks to capture small and rapid movements of the price. Usually, in a matter of minutes.

The downside of this is that to obtain compensating benefits; leveraged products are used, which incurs an extra risk, especially if you’re starting.

For obvious reasons, it is the least recommended option to begin to monetize your money.

What availability does it require?

Total availability (or almost).

This type of trading requires to be aware of the market several hours a day, every day and in the same hours.

Come on; you could say it’s almost like a workday.

According to my experience in day trading and from what I have seen in other traders, it is almost impossible to reconcile being a daytrader effectively with a “normal” life (work for others, studies, activities that require a fixed time, etc.).

For an intraday session, you need to be 3 or 4 hours in the morning and the afternoon (hours of greatest market negotiation), in which your concentration has to be 100 %.

No distractions are allowed of any kind.

The demands are high, as you can see.

Of course, if you can afford this type of operation, you learn correctly, and you are consistent, with which you will achieve greater profitability from afar.

How much money do I need?

For the learning phase, except for the money that you can invest in courses, you need relatively little.

With a € 500 – € 1,000 account, you can start trading in currencies or CFDs.

Once you feel safe, you can continue with those figures or something else, but when wanting to take advantage of day trading, it is normal to switch to trading futures.

People who are professionally engaged in trading with futures handle accounts of at least five figures (and more pulling towards the six figures).

To give you an idea, a € 25,000 account is small.

How can I help you in Daytrading

I hope this article helps you clarify your doubts about which option (or options) to choose to make your money profitable.

If you have any questions or want to contribute your own experience, do not hesitate to write me.

I wait for you in the comments

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