As a student, money is tight and most will consider taking up a part-time or even a full-time job on the side to help make things a bit easier. Aside from the usual bar or retail work, many students have the desire to find a side-hustle which not only helps them to earn money, but also provides them with a skill that they can use in the future.
Learning about trading is a great way for students to learn a new skill and gain experience in buying and selling. But, other than learning new skills, is trading a good way for students to make money? Let’s take a look at some of the reasons to consider trading as a student.
Will Trading Help Your Career Plans?
Before settling on the idea of investing, consider the reasons why you want to begin trading.
Although it might seem like a fairly straightforward way to earn some extra money, being successful in trading and investing requires patience, hard work and time dedication. You should consider whether spending time on trading alongside your studies and social life is worth it and whether it will help in any other aspects of your life, such as your career plans.
If you feel as though the requirements of trading can support you in other areas, as well as help you make a little extra money, then that’s great, but if you’re not so sure, it may be worth considering another avenue.
It’s Not A Get Rich Quick Scheme
Trading might seem like the perfect way to make money, but it’s important to understand that it doesn’t guarantee quick wins. Before you even begin investing, you need to learn more about the markets, which takes time, and it’s recommended that you start off with smaller trades to get used to the processes, which rarely offer big returns if they are successful. If you need money sooner rather than later, then it may be worth considering something other than trading and investing to earn some extra funds.
However, when done right and for a good length of time, the rewards of trading and investing can be large, but this is also dependent on how much time you put into making trades. You may end up with a portfolio large enough to contribute towards your rent payments for a few months, or help with day to day living expenses.
If you’ve never traded before, then it’s important to spend time learning about the markets and understanding more about the terms used and what makes a good trade. As you familiarise yourself with the markets, you may make small trades or take actions which can gain the attention of traders and brokers with far from helpful intentions. Poor brokers and scammers prey on inexperienced traders in order to encourage them to make trades with little to no return, or to steal their money in crypto, forex trading scams or pump and dump schemes.
You should also be cautious as to which money you use to make trades. It’s best to use money you have saved or have earned through other jobs, rather than using student loans or credit cards, as this can usually end up becoming a hard habit to shake. In the US, although not illegal, interest fees can be higher if student loan providers find that you’ve used your loan for trading and investing.
Whilst it might be initially enticing to begin trading and investing in order to make some money as a student, there are many considerations to keep in mind. Always do your research before parting with money for trades or investments and, if you’re not happy with the risks involved, don’t go ahead. Once you know more about trading and investing and are happy to be patient to see the rewards, then trading is a good way for you to make some extra money, but there are other options you can consider.