How to Make $2,000 a Month
Online Trading Stocks
How to Make $2,000 a Month Online Trading Stocks
Having the freedom to chase your dreams, whether your dream is to have the time and resources to travel the world or anything else, often requires a source of income. That’s why we’ve started this financial series in our travel website. In this post I want to share how I made $2000 this month by trading just from my phone and I will show you the main platform/app (Revolut) I use to invest, talk you through the pros and cons of it so you can decide if it’s right for you, my current portfolio and how exactly to make these trades.
I have made use of the recent market volatility (as of July 2020) and have found using Revolut great for making quick trades for this purpose. I do invest in other platforms including Vanguard/AJ Bell, but use them more for long term trades, and index funds/exchange traded funds, but will leave that out of this article for another post.
1. Revolut as a trading platform
I have been actively using Revolut and will jump right in to show you guys how it works. If you’ve never heard of it before, it is a digital banking app that is targeted at travellers. We have been using it on our travels over the past year to get the best exchange rates on various currencies, (they have a 0% currency conversion fee), and one of the best things is that if you have any leftover money that hasn’t been spent, you can exchange it back and not have loose change lying around at the end of your trip.
Once you open the app you get to your dashboard. Click on the trading tab. If you haven’t set up a trading account it’s very easy to do so and you just need to put your basic personal details in. Once you’re in the trading tab, the amount of money you have invested is displayed at the top of the screen.
You’ll see subtabs of ‘invest’, ‘fund’, ‘withdraw’ and ‘statements’.
If you click on ‘invest’ you’ll see all the stocks you’re able to purchase through this app. You can favourite any of these stocks to add to your watchlist.
You can also set up a price alert for individual stocks, so you’ll be informed when it reaches a certain price
Under ‘fund’, you can transfer money from your other bank accounts.
You can also click on ‘withdraw’ to remove money or ‘statement’ to see your previous transactions.
Below these subtabs are 2 further sections – your investments and transactions.
↠ Edit: There has been an update recently (as of July 2020), click here to watch my video to see what's changed on the Revolut app!
2. Pros and cons of trading on Revolut
You can buy fractional shares on the app which is great especially if you’re just starting off and don’t want to put all your eggs in one basket. Some individual shares go for over $1000, and can be offputting at first.
You also get unlimited free trades if you’re a metal user. This does cost $15/month, but includes travel perks). Otherwise, if you’re not a metal user you are on a standard account (which is free and allows you to make 3 free trades/month) or can opt for a premium account ($10/month and allows you to make 8 free trades/month). Once you pass the free trade limit, trades cost $1 each, which is actually still really good considering many other platforms charge 10 times this amount. Having to pay a larger sum for each trade does add up and can eat into your profits over time.
The trades you make are also almost instant, but can vary slightly and payments may end up pending for a few minutes up to 30 minutes.
There are no inactivity or withdrawal fees.
If you’re also interested in investing in cryptocurrency, it is an option on the app (eg bitcoin)
Overall, setting up a Revolut trading account is fast and easy. All you need is to have a bank account with them and provide a few details!
As much as I enjoy using Revolut, and is still my platform of choice for trading in US stocks, there is a lot more they could do to improve, and a lot of other apps I see (e.g. Robinhood) have much better metrics and stock stats – I would probably use Robinhood if I could, however it’s not currently available in the UK.
They also have a limited product portfolio of only US stocks. You won’t be able to buy ETFs or index funds (as on Vanguard). If you’re looking for UK stocks to invest in, such as BP, Rolls Royce, Barclays, you wouldn’t be able to use Revolut.
You also have to trade in US dollars, which again is fine as long as you know what you’re getting yourself into and keep an eye on the dollar/pound values if you’re converting from a different currency. Otherwise you may lose out on foreign exchange so please take note of this!
The app also only provides basic stats and is missing educational tools. You can’t get in-app information on whether a particular company pays dividends and you have to go on dividend.com and search that way.
Revolut currently has no portfolio tracking data - there is no graphic/metric that shows how your portfolio is growing. It doesn’t display your overall portfolio percentage gain clearly. The way stats are displayed can be confusing, not easy to follow and I have to keep track of this information myself.
The last point I have is that within the first 30mins of the market opening, the app can be extremely slow and sometimes not even useable. The only thing I can do is to just shut it down and open it back up again after 30mins
Now despite all these things going against it, I still enjoy using this app, and it’s my preferred way to day trade. So I would still recommend it if you’re thinking about getting started and don’t know where to start. I believe they are also working on an update which should be out soon and that might improve a lot of the interface/metric points I made. At least I really hope it does.
3. My current portfolio
I have created a Youtube video showing my current portfolio. I’m not currently using Revolut for long term investing at the moment, and am actively tracking a few investments such as Berkshire, Disney, Coca-cola and Alphabet. What’s important is to make sure your portfolio is diversified
4. How to make trades
I thought it’d be helpful to show you how to make a trade. It’s really simple and I’ve gone through it step-by-step in this Youtube video I mentioned above.
Investing is something that’s actually really easy to do, easy to set up, but it can be a risky business, especially if you’re investing for the wrong reasons. However if you do it right and only make informed decisions about your investments then it’s a life strategy that will help you build wealth over time. And even if you don’t have tonnes of money, YOU DON’T HAVE TO, even if you start by investing say £50/month, instead of spending that £50 on things you don’t need – it’s money that will grow and mature over time and help you become financially free in the future.