What Is Passive Income?
Passive Income is the concept of attaining regular earnings outside of your original employer or contractor.
Passive income is often mistaken as a concept to get rich quickly, however, individuals still need to put in the time and effort to ensure that there is constant cash flow from the external source.
It is important to remain committed and consistent with the strategy you have developed to gain extra financial security.
So Is Passive Income Real?
The definition of passive is when one is allowing or accepting of a situation and has little to no active response or resistance. So by definition of the word, passive income isn’t a thing.
Since generating passive income still requires you to put in a reasonable amount of effort, there has to be some sort of active response to the situation. Therefore, passive income - as of the literal definition of the word - is incorrect.
The more accurate depiction of ‘passive income’ would be extra income or an additional income stream.
However, the concept behind passive income is very much legitimate. To develop more financial security for yourself, an additional income stream can very well be the solution.
How Do I Earn Extra Income?
A popular solution might be trading in the market. Many individuals are hopping on board the trading train. Stock volumes have increased by USD 3.8 billion from 2020 to 2021.
Day trading has become a popular extra income alternative as the market can be analyzed anywhere and at any time due to the accessibility of smart devices. With this flexibility, most individuals can monitor their progress constantly.
However, only a few can make some extra cash out of day trending while others might lose their capital. Therefore, it is very important to constantly keep up to date with the trends of the stock market.
Knowledge is power; successful traders will always have good knowledge of the market.
But do be reminded that no trader will be successful 100% of the time. You sometimes have to lose to earn and therefore, you must be careful about your capital.
Rules You Should Follow When Trading
Follow these rules whenever you’re trading to ensure you keep yourself safe and establish your boundaries.
- Never trade beyond what you can handle
- Set realistic targets and prevent loss
- Only trade when conditions are met
- Educate yourself on market psychology
These rules will allow you to ensure you don’t overstep your boundaries. Remember that trading is not a game nor a hobby, but something that you need to take seriously.
If you are new to trading or even just curious about how to master the art of trading, TradeWitheBoys offers an e-learning trading class that allows you to learn how to trade like a professional in just three simple steps. With our trainers guiding you through, you will be sure to gain the knowledge necessary to capitalize on the market. With 600 traders in our community, we help each other learn and grow. Even the beginners in our midst have started to trade like professionals by taking up the course. Sign up with us today and get started on growing your wealth!