Can Day Trading Beat Drop Shipping? A 7-Day Challenge
📈 Introduction
In the world of online business, there are many ways to make money. Two popular methods are day trading and drop shipping. Day trading involves buying and selling assets on a daily basis, while drop shipping involves selling products online without holding inventory. In this article, we will explore whether day trading can beat drop shipping in terms of profitability. To do this, we will follow a 7-day challenge where we will learn about day trading, invest our own money, and compare the profits with a brand new drop shipping store.
Table of Contents
- Day Trading vs. Drop Shipping
- The Challenge
- Learning About Day Trading
- Candlestick Patterns
- Trading with Crypto Currency
- The Pet Hunt Drop Shipping Store
- Facebook and TikTok Ads
- Trading View and Technical Analysis
- The Cash Flow Quadrant
- Conclusion
Day Trading vs. Drop Shipping
Day trading and drop shipping are two very different ways of making money online. Day trading involves buying and selling assets on a daily basis, with the goal of making a profit from the price fluctuations. This can be done with stocks, forex, or crypto currency. On the other hand, drop shipping involves selling products online without holding inventory. The drop shipper acts as a middleman between the customer and the supplier, and makes a profit from the difference between the wholesale and retail price.
Both day trading and drop shipping have their pros and cons. Day trading can be very profitable if done correctly, but it also involves a lot of risk. The market can be unpredictable, and traders can lose a lot of money if they make the wrong decisions. Drop shipping, on the other hand, is less risky, but also less profitable. The profit margins are lower, and there is a lot of competition in the market.
The Challenge
To compare day trading and drop shipping, we will follow a 7-day challenge. We will learn about day trading, invest our own money, and compare the profits with a brand new drop shipping store. The goal is to see which method is more profitable, and to learn about the strengths and weaknesses of each method.
Learning About Day Trading
Before we start day trading, we need to learn about how it works. We spend a few hours learning about the market, how to predict the market, and how to use technical analysis to make informed decisions. We also learn about candlestick patterns, which are a way of predicting the market based on the way a candle closes.
Candlestick Patterns
Candlestick patterns are a way of predicting the market based on the way a candle closes. There are different types of candlestick patterns, each with its own meaning. For example, a bullish candlestick pattern indicates that the market is likely to go up, while a bearish candlestick pattern indicates that the market is likely to go down.
Trading with Crypto Currency
For our day trading challenge, we will be trading with crypto currency. We choose crypto currency because it is a volatile market, which means that there is a lot of potential for profit. We also choose crypto currency because it is a 24/7 market, which means that we can trade at any time of the day or night.
The Pet Hunt Drop Shipping Store
To compare day trading with drop shipping, we create a brand new drop shipping store called The Pet Hunt. We choose to sell cat tents, which have been popular on TikTok and Facebook. We create a simple and clean website, with a logo, product images, and customer reviews. We also set up Facebook and TikTok ads to drive traffic to the website.
Facebook and TikTok Ads
We set up Facebook and TikTok ads to drive traffic to The Pet Hunt website. We spend around $500 on ads, but we only get one sale. We also try TikTok shop ads, but they do not perform well. We learn that TikTok shop is a new feature, and it may take some time to gain traction.
Trading View and Technical Analysis
We use Trading View to analyze the market and make informed decisions. We learn about technical analysis, which involves using charts and indicators to predict the market. We also learn about the cash flow quadrant, which is a way of understanding the different ways of making money.
The Cash Flow Quadrant
The cash flow quadrant is a way of understanding the different ways of making money. There are four quadrants: employee, self-employed, business owner, and investor. We learn that the best way to make money is to be a business owner or an investor, because these quadrants create cash flow.
Conclusion
After our 7-day challenge, we learn that day trading can be very profitable if done correctly, but it also involves a lot of risk. The market can be unpredictable, and traders can lose a lot of money if they make the wrong decisions. Drop shipping, on the other hand, is less risky, but also less profitable. The profit margins are lower, and there is a lot of competition in the market. In the end, it is up to the individual to decide which method is best for them.
