Trading Online – 5 Things To Know (2020)

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.

6 Levels and 19 Types of Online Business
Level 1 = Novice

Okay for side income or beer money, but hard to earn a living.

GetPaidTo
Contests

Level 2 = Intermediate

Best for earning a living online when you’re starting out, but hard to scale.

Remote Job
Freelance

Level 3 = Advanced

Easier to scale and higher income potential, but you usually need significant investment of time and/or money upfront.

Agency
Referral
Resale

Level 4 = Superior

Even more scalable and even higher income potential, but also more complex / difficult / expensive.

Authority
Digital Product

Level 5 = Distinguished

Most complex / difficult / expensive, but the rewards here can be massive.

Physical Product
Cloud Service
Marketplace
Social Network

Level X = Wildcard

These are the misfits. Many aren’t even considered businesses in the traditional sense, but they are all ways to make money online. You typically need a lot of time, money, or luck to succeed with anything here.

Trading
Investing
Esports
Betting
Gambling
Multi-Level Marketing









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 RootsCo-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-TradeDay 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 MuellerSerial 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 JRNYFounder of JRNY Crypto $3,802 profit in 3 weeks trading crypto