We all like the idea of earning more money, but we probably don’t relish devoting more of our waking hours to work. However, there are ways that you can make the money you’ve already earned and put aside work harder for you.
Unfortunately, the simplest option – putting your spare cash in a savings account – won’t bring you the most benefit these days – because interest rates are so low. Instead, you could consider putting your money to work for you in a trading account, dealing in different markets such as the foreign exchange market or the commodities market.
You may think you don’t know anything about how to trade, so why would it be a sensible thing to try out with your savings that you’ve struggled to amass over the years? While it’s true that trading is certainly not without risk, it may not be as risky as you imagine, especially if you take the time to learn a bit about it. And, if you make the right trades, you could easily earn a better rate of ‘interest’ than in a savings account.
For someone who’s just starting out in online trading setting up an account at Tradefair is a sensible option. Tradefair is the trading arm of Betfair, and allows users to set up a demo account and also use simulation mode when they want to try out trading and spread betting in a market that’s new to them.
Tradefair has more than 3,000 markets that its users can trade in, all from one single login. Many people start their trading experience in the foreign exchange market – also known as Forex. If you place Forex trades in a Tradefair account, you don’t actually buy chunks of different currencies; instead you place a trade on what you think will happen on the margine between the different currencies’ values. For example, if you see the Greek economic situation putting increased pressure on the Euro, and predict that the Euro will continue to weaken against the British pound, you could place a spread bet that reflects this. No-one knows for certain what will happen, but all Forex traders do their research and take an educated guess before deciding which trades to place.
What do you think will happen to the Euro?
The fact that you can get it wrong is why having the possibility of placing simulated trades when you’re just starting out is such an attractive one. With a Tradefair account, you can place trades as if you were using real money, but without actually putting any of your hard-earned cash at risk until you’ve proven to yourself that you know what you are doing.
And of course, there’s the possibility of trying your hand at trading in different markets. Many novice traders find that the commodities market is an easy one to get a handle on. We’re all affected by the fluctuating prices of products such as oil, copper and coal, as well as those of corn, sugar, tea and coffee, even if it’s only when they have an effect on our groceries bill. If you can begin to get a grasp of these commodities markets, you may be able to make a profit from spread betting on them.
Trading in commodities such as sugar could boost your income.
Using a site like Tradefair, you can experiment with different markets without any financial risk. The key thing to remember is that when you do start trading with real money, you should do so in small increments. There is never any guarantee that you will make the right call and every time you place a trade there’s the real possibility of losing your investment stake. Don’t be tempted to rush in with a big trade because you’ve done well in simulation mode. Take it slow and steady and build on your success gradually.