Small business owners live in an uncertain world. The income from their business is never guaranteed till the business matures and starts generating steady income on a consistent basis. That is why it makes sense to be on the lookout for a second income that can support you and your family during ups and downs of small business. While getting a job or running a second business is not an option for small business owners there are ways by which you can generate income without having to spend lot of time and effort. Below we list 5 ideas to help with your personal finance.
- CFD Trading
Also known as contracts for difference, these positions enable you to speculate on the rising or falling prices of specific assets. Examples here can include stocks, bonds, securities and commodities. The main benefit is that you will not have to physically own the holding to make a profit (if the price moves in the predicted direction)
- Forex Positions
It can be argued that currency trading is the most popular method to generate a secondary income due to the fluid nature of these markets. By comparing the value of one currency against another (such as the pound versus the euro), you will be able to enter into short-term trades; some of which can take place in a matter of minutes. As the Forex marketplace operates 24 hours a day, it is also a great option if you are looking to accommodate a busy schedule.
- Commodities
Commodities are another worthwhile option to consider, as they are often deemed to be safe havens when compared to the volatility of the open markets. A handful of common assets include oil, silver, gold and even foodstuffs such as corn and coffee. If you have been looking for long-term investment options, commodities aim to please. For instance, a position in gold can be held for several years to enjoy a steady return.
- Blue-Chip Stocks
These are the most traditional form of investments. Companies such as Apple, IBM and Facebook are all considered to be blue-chip stocks. Due to their large market capitalisation, they are excellent positions to accrue steady growth from both medium- and long-term points of view. These are also highly transparent entities and it is always possible to follow their values in a real-time scenario with the help of effective online trading platforms.
- Binary Trades
Binary trades are a final option to keep in mind. As you may have already guessed from the terminology, binary trades enable you to make money even if the value of an underlying asset (such as a commodity) falls. You are only required to correctly predict the direction of the movement and the time frame. These trades can also be short-term positions, so they are more liquid when compared to blue-chip holdings or commodities.
While all five of these methods are certainly worth a closer look, we should conclude by mentioning that the trading platform utilised is just as important as the trade itself. Portals such as CMC Markets can offer a host of tools and advanced charting capabilities. So, you will always remain one step ahead of the curve. Your dream of generating a secondary income will become a reality.
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