How to double your income from Online Business

Online business is that kind of business which you can easily start with limited investment. All you need to have, is that spark in you. This combined with a business idea, a plan, business acumen and patience will make you successful over time. For investing/trading in stocks, you don’t have to be a professionally qualified person. Thus, online business + investing/trading can be done by anybody. We will look at such a business idea below that will give you the benefits of both.

 

The story of Jeffrey Neumann

Jeffrey Neumann was from a non-finance background. He just graduated from college and had no intention to go to medical school which was his initial goal. He had no prior knowledge of stock market. He started his trading career with penny stocks because these stocks moved by a big percentage everyday. Jeffrey’s method gave him success initially, but then once he made a big loss. That’s when he organized his work and came up with a strategy that will help him to catch the big moves.

This is when he started getting into technical analysis. However, his analysis was very basic. He started drawing trendlines. When a stock gives a breakout from a downward moving trendline he will buy. In case the breakout is a false one, which means the upward movement does not continue he will immediately get out. Although initially he started with short term charts, later he started looking at the long-term ones. This would help him to catch the bigger moves.

Normally, when we talk about technical analysis we only talk about charts. However, Jeffrey combined fundamental analysis to this as well. He started looking at stocks with key catalyst drivers. Initially he would buy in small quantities but once he has a strong conviction on the performance of the sector, he would buy lot more. For example, in 3D printing business he found that this sector is at a nascent stage. It will go up in the coming years. So, he bought shares of a company called Organovo. Once he found that the stock price is at a very high level which is an unjustified price for such a company, he sold most of his stocks. In this process he made $10,000,000 profits.

Jeffry Neumann’s trading method is based on the below:

1. The stock has declined a lot or is extending sideways movement near its lows.
2. The company provides a service or has a product that will have significant demand in future.
3. The entity is part of a sector that Neumann has defined as being primed for a substantial upward price move.
4. There is a catalyst to indicate the chance for a near price rally e.g lot of buying by company insiders or institutional buying.
5. He is familiar with the product and has tried it himself. For this he will first buy the product of the company and use it. If he is convinced that the product is good enough then only he will buy the stock.
6. The stock is showing some signs of life and either a sudden up move after a long period of decline or sideways price movement, or a sudden spike in volume after a prolonged period of relative inactivity or both.

When most of these elements are in place, Neumann is prepared to look for his breakout. That’s his time to buy in bulk.

How can you relate this to your favorite industry?

 

Let’s say you like the Electric Vehicle (EV) industry for its potential to go up in the coming years. You apply the above criteria and find out a stock which has fallen down a lot and now giving signs of breakout. Although, we are talking about trading these are long term trades which can go over a few years. Thus, you need to use the weekly and monthly charts as these are the longest time frame charts that are available with us. Buy a stock and follow Jeffrey’s approach.

Making money in your Online Business with the help of Jeffrey Neumann’s approach

Remember, Jeffrey first buys the product and if it is good then only, he buys the stock?

Instead of buying and using it yourself, you will do business with the product of the company. I am not going to say whether you need to be successful in the business first and then buy the stock, or you will do business and buy stocks at the same time. I think doing both at the same time is possible as you will get enough exposure in the product once you start the business. The best thing is that you will get customer feedback which will give you further conviction in the sector.

Now because I am talking about EV, it is not possible to buy a Tesla car before buying Tesla stocks. Therefore, you will have to rely on company reviews and expert analysis.

So, the question is what kind of online business opportunities lie in this sector?

I have noted a few below:

1. Selling EV charging accessories available in Amazon.

2. You can sell Safety Glove, Rubber Flooring and Charger Bag.

3. You can develop EV related apps.

4. Teach online courses that will boost up EV career of employees or prospective candidates.

5. Write EV related blogs.

6. Create EV vehicle review channel.

If you want to have a physical business and have an online section associated to it, then you can take franchisee of battery swapping companies. As per current estimates this will be a big market in future as charging a battery takes long time. To promote your battery swapping station you can have a website.

Now you see all these will give you enough exposure to the EV sector as well as to specific companies. You can buy EV stocks in small quantities and when you are convinced about the business you can buy in bulk. Making money from stocks in your own domain increases chances of profit. Once the stock price goes up you can use the profit to grow your business.

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