Starting and running a business is one of the most satisfying things that you can do. In most cases, the best business you can start is one that requires little money in upfront investment and higher return potential.
Opportunities to start your own business, even as a second job, have multiplied in recent years mainly thanks to the Internet and yet more recently to the advent of AI technologies.
The uncertainties of recent years have been a factor in the rise of the popularity of some jobs in finance, such as the day trader, because of its ability to generate money whether an asset rises or falls (if done well, of course).
In this article, we will explain why you should choose day trading and why setting your own account can be a good business to start.
What do we mean by low starting costs?
The starting costs of a business varies all the time. Some companies require millions of dollars to start, which gives them barriers to entry. For example, firms like cloud computing, trucking, and space exploration require millions.
Therefore, by looking at firms with low starting costs, we mean companies that require more or less $500 in initial capital. While it is possible to start a business with less than $500, most of them will often have a scalability problem.
What is day trading?
Day trading is the practice of buying or shorting financial assets like stocks, indices, forex, and commodities with the goal of making a short-term profit. It is often seen as a form of investing, with the only difference being the holding period.
Investors hold their positions for a long period, often weeks, months, and years. Day traders, on the other hand, hold their trades for just a few minutes or hours. Scalpers buy or short assets and then exit their positions within a few seconds. Their goal is to make several small profits every day.
Day trading is one of the best businesses you can do with little money since most brokers don’t have a minimum balance requirement. As a result, many people have successfully grown their accounts from as little as $100 to thousands of dollars within a short period.
The benefit of being a day trader is that the initial costs tend to be a bit minimal. In most cases, all you need is the starting capital. Since you have a smartphone already, it is possible to start using it for day trade. An added advantage is if you have a computer or a simple laptop.
Benefits of day trading
There are many benefits why day trading and prop trading are better business options. First, the starting capital is not as much. With just $500, you can start your own trading account or start your trading floor.
This is true especially if you decide to join a proprietary trading firm, because the company itself will give you the capital and buying power you need.
Second, day trading can work on a 24/7 basis and is very flexible. If you are a stock trader with an international broker, you can start your day with Asian stocks followed by European and American equities.
The forex market is open 24 hours five days a week while the crypto market is open 24/7. Therefore, you can make money all the time. If you are running a trading floor, you can let your traders work in shifts.
Third, trading gets better with time. In most cases, you will become a better day trader with time, so you will have a long term growth. As such, there is a likelihood that you will continue growing your account as you gain more experience.
Further, unlike other businesses, trading does not have competition. In most cases, many traders compete with themselves as they attempt to outdo their past performance.
Prop trading is a good business to start!
Many day traders do so from their personal retail accounts. This is where they create accounts using companies like Robinhood, Schwab, and Interactive Brokers, deposit their funds, and start trading.
After running your retail account successfully for a while, we believe that moving to prop trading is the next big move. Best by starting your own business, including opening an office.
A trading floor is a business where you create a company and people trade for you. In most cases, you will be both trading and managing the floor.
Starting and running a trading floor has its challenges. The biggest challenge is that the cost of operating one can be a bit high. The other challenge is finding the best team to add to your floor.
Fortunately, We can help to solve the initial challenge. As a prop trading firm, we provide our floor managers with the capital they need to run their floors. We then make money by taking a small cut of all profits.
The starting cost of a Real Trading trading floor is as little as $500. This cost covers the software and the hardware, which links traders to our trading platform.
Prop trading vs other businesses
There are several types of online businesses that you can start. One of the most popular ones is e-commerce, where you will be selling products using your website or mobile apps.
Starting an ecommerce business is highly costly. For example, you need funds for building your website and apps. Also, you need to hire a person for handling customer care and inventory.
Most importantly, you need marketing and inventory costs. Therefore, you will often need thousands of dollars to start and operate a company.
A Software as a Service (SAAS) is another viable business that you can start online. These are companies that provide software as a subscription. Think of firms like Salesforce, Adobe, and Shopify.
These companies require thousands of dollars to start and scale. For example, you will need a team to handle your software development and another one to handle your marketing.
Another simple business you can start is a blog. In most cases, you can start such a business with little initial costs. The challenge is that scaling such a company will often need more money because of how competitive the industry is.
Why use Real Trading to start your trading journey
Real Trading is one of the biggest prop trading companies in the world. There are many benefits of using its services in your trading journey.
First, the starting costs are a bit limited. You only need $500 to start trading, which is quite affordable. After paying these funds, you will receive our proprietary hardware, which will give you access to the market.
Second, the company has over 20 years in the industry and thousands of floors around the world. This gives you peace of mind as you start your trading journey.
Third, Real Trading has a wide library of content that will help you become a successful trader faster. The best resource is TraderTV, a YouTube channel where some of our successful traders trade live.
Further, the company gives you access to a demo account to create and test your trading strategy before you move to the live account. Real Trading, unlike generic brokers like Robinhood, gives you access to stocks from around the world.