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Traditional stocks and bond investments may present great opportunities to earn a supplemental income, but they can be time-consuming as well. You can’t just decide to pick a stock and start trading because it takes research. Many investors already have full-time jobs or other ventures to take care of, and that makes it hard to dedicate a lot of time playing the market.
However, the stability of your finances demands that you set aside time to manage your investments. For some investors, hiring a financial advisor is the ideal solution to this dilemma but for others, not so much. Financial management services cost money, which a young investor may not have.
So, how can you bring in that extra cash without spending too much time on the stock market?
Supplement Your Income Without Spending Time on the Stock Market:
Modern day brokerages have revolutionised trading by providing investors with online applications. These platforms provide all the essential trading features and much more. You will find a platform such as CMC Markets that caters to stocks, forex, and CFD trading among others. The time-saving aspect of trading apps can give you the chance to make money without putting everything else aside.
Firstly, online brokers offer uncomplicated interfaces that make trading relatively easy. Apps allow traders to watch the performance of their trades throughout the day from wherever they are. You can conveniently check stocks or other assets on your smartphone, laptop or tablet.
Different tools are available as well, and traders can use them to back up their decisions. For example, before you can decide to trade on a certain currency pair, look at the latest market news for an informed choice. The era of calling your agent first before making an investment is gone. A majority of online brokers also have resources for traders such as libraries, real-time finance news and investment performance charts, which are all very useful when deciding what to have on your portfolio. With such information at your fingertips, you can slash the amount of time it takes to conduct your research.
Automated daily alerts about a particular stock save you the trouble of searching for the details yourself. With the right online platform, you can trade options, where you don’t own the stock but bet on its performance. Forex currency trading is another way to supplement your income, or you can trade futures, which gambles on the highs and lows of businesses.
The fact that transactions are instantaneous also reduces the amount of time you have to spend on your investments. Whether you are depositing money or placing trades, it only takes a few minutes an online platform.
As an asset class, gold is considered a safe haven. It is a popular way for most people to park their wealth and the recent upward trajectory of gold prices makes it more attractive. Even though it presents some risks just like any other investment, it usually acts as a rescue asset during hard financial times.
When looking to move away from the stock market, gold offers several alternatives. Gold ETFs, indirect investment in gold mining stocks and gold accounts are some of the avenues to take. Such investments don’t need you to always keep an eye on them which saves you time.
Business and individuals out there are always looking for alternative means of securing funds for one project or another. With the strict requirements of traditional lending institutions, not many borrowers get the assistance they need, hence the popularity of peer-to-peer lending. In this strategy, you lend money to a peer and get it back with interest. Compared to conventional lenders, financiers here require lower interest rates, which is why they are so appealing.
The only risk with this investment plan is that of borrowers defaulting. However, it is possible to minimise the gamble by spitting loan amounts such that no one borrower gets all of it. The returns from peer-to-peer lending are significantly higher than when you have money just sitting in an account.
A small business is another place you can inject money and wait for it to earn an income. Being a silent partner can give you the freedom to attend to your other ventures. Certificates of deposit, royalty income streams and hedge funds are also great alternatives to the stock market. You get extra cash without spending all your free time monitoring investments.