Why do you think people are jumping for trading as a side business? And how is trading made easier for them? The sense of financial independence and the rise of accessible technology have promoted a surge in people considering trading as a side hustle.
Gone are the days of needing a stockbroker on the phone—online platforms and mobile apps provide a user-friendly entry point. But with the vast amount of data and constant market movement, navigating the world of finance can still be daunting.
This is where AI, or Artificial Intelligence, steps in and changes the game for aspiring side-hustle traders. AI-powered platforms can help individuals to make informed decisions and potentially grow their wealth.
But the question is, how is AI making trading easier and more accessible? One example to answer this is AI’s role in data analysis. It can sift through mountains of financial data, identifying trends and patterns that might be difficult for humans to spot. This can give traders valuable insights into potential market movements.
Besides this, there are multiple ways in which AI is making trading easier for investors, especially for business owners who have just started trading as a side hustle.
What To Consider Before You Begin?
Before diving headfirst into the world of AI-powered trading, it’s crucial to take a step back and assess your individual circumstances.
Risk Tolerance
Financial markets are inherently risky, and even the most sophisticated AI platform can’t guarantee success. Understanding your own risk tolerance is paramount. How comfortable are you with potential losses? How much capital can you realistically afford to dedicate to this side hustle?
While AI can provide valuable insights, the ultimate decision of which trades to execute still lies with you. AI platforms are tools, not crystal balls.
There will always be unforeseen events and market fluctuations that can impact your investments. Setting realistic expectations and having a plan for managing risk is essential.
Time Commitment
Getting started with AI-powered trading requires an initial investment of time. Researching different platforms, understanding their functionalities, and setting up your account all take effort.
Additionally, some level of ongoing monitoring is necessary, regardless of how much you rely on AI for trade execution.
However, the beauty of AI lies in its potential to save you time in the long run. By automating tasks like data analysis and backtesting, you can free yourself up to focus on other aspects of your side hustle, such as researching specific investment opportunities or staying informed about broader market trends.
Ultimately, the time commitment will depend on your chosen level of involvement and the platform’s automation capabilities.
The 5 Best Options For Beginners
The world of AI-powered trading platforms can seem overwhelming, especially for beginners. But fear not!
No. 1. Coinrule
This user-friendly platform allows you to build and deploy automated trading strategies (bots like Trader AI) without needing to write a single line of code. Coinrule offers pre-built templates based on popular technical indicators, making it easy to get started.
They also boast a vibrant community where you can learn from experienced users. Coinrule integrates with a wide range of exchanges, giving you flexibility in choosing your investment playground.
While beginner-friendly, Coinrule offers a free plan with limited features. Upgrading unlocks more bots and advanced functionalities.
No. 2. TradeSanta
This platform focuses on simplifying automated trading strategies, particularly Dollar-Cost Averaging (DCA) and Grid Trading. DCA involves investing smaller amounts at regular intervals, which can help average out purchase costs over time.
Grid Trading automatically places buy and sell orders within a specified price range, potentially profiting from market volatility. TradeSanta offers a user-friendly interface and integrates with several popular exchanges.
TradeSanta’s free plan has limitations on the number of bots and connected exchanges. Upgrading unlocks more features and flexibility.
No. 3. Public.com
This commission-free platform boasts a unique social trading aspect. You can follow experienced investors and even copy their trades directly. This can be a valuable learning tool for beginners, allowing you to observe successful strategies in action.
Public offers a limited selection of assets compared to some other platforms, but it focuses on user-friendliness and educational resources. Keep in mind that while social trading can be helpful, it’s crucial to do your own research before blindly copying others’ trades.
No. 4. WeBull
This platform offers a powerful combination of research tools, charting capabilities, and AI-powered features. WeBull provides basic paper trading to test your strategies in a simulated environment before risking real capital.
Their AI integration can identify potential investment opportunities and analyze market sentiment. While WeBull caters to a broader audience, its educational resources and intuitive interface can be beneficial for beginners.
WeBull’s research tools and AI features may have a steeper learning curve for absolute beginners.
No. 5. eToro
Similar to Public, eToro offers social trading functionalities. Here, you can connect with other investors, share ideas, and even copy their trades. eToro also provides “CopyPortfolios,” which allow you to invest in a basket of assets curated by professional investors.
This can be a great way to diversify your portfolio and potentially manage risk. Social trading success hinges on choosing the right investors to follow. Conduct thorough research before copying someone else’s trades.
How To Manage Your AI-Assisted Side Hustle?
Managing your AI-assisted side hustle requires a healthy dose of realism and ongoing oversight. Setting unrealistic profit goals can lead to disappointment and potentially reckless decisions.
Remember, AI is a powerful tool, but it’s not a magic money machine. The financial markets are inherently volatile, and losses are a possibility. To mitigate risk, consider diversifying your portfolio across different asset classes.
This means not putting all your eggs in one basket, which can help spread out potential losses. Most importantly, don’t become a passive observer. Regularly monitor your AI trades, review platform recommendations, and stay informed about overall market trends.
Your active involvement, alongside the insights provided by AI, is key to navigating the financial markets successfully.
Final Thoughts
These platforms offer valuable tools for data analysis, automated strategies, and personalized recommendations. However, before diving in, it’s crucial to assess your risk tolerance and understand the time commitment involved.
Responsible trading requires choosing a reputable platform, setting realistic expectations, and maintaining active oversight of your investments.
AI is an assistant, not a guarantee of success. By combining its insights with sound financial practices, you can potentially harness the power of AI to make informed investment decisions and grow your wealth over time.
