So, I recently watched the movie “Wall Street” – a great movie, which I highly recommend, it seems there is also a sequel coming out soon. Anyhow, in stock trading and currency trading (or pretty much anything that involves making money) the most important metric that is discussing is ROI – return on investment. From gambling to business to forex trading a high ROI is always desired. The average Joe trying to trade stocks may be more than satisfied with a 25% ROI, he invests ten thousand and returns with 12,500 – (25% ROI) not too shabby – thats what most would say, but I’m here to offer a different point of view.
Picture this, Instead of average Joe investing 10 grand to return 13 grand, he spends 10 dollars on a hostgator hosting plan, and a free domain name. Joe learns basic html, or perhaps just installs wordpress so he can create content for his website. Joe creates some content, and includes some relevant affiliate links, such that he will earn a commission if someone clicks on his affiliate link and generates a sale. Now, Joe needs to generate traffic – get visitors to his website, because in this game traffic equals money. Joe works 9-5 and doesn’t have the skill set to market his website, so he goes somewhere ( such as odesk.com ) and hires someone in India to conduct search engine optimization and search engine marketing, social media marketing etc. Generally, a very skilled english speaking worker will do these tasks for under 3 dollars per hour. Joe wants to invest 300 dollars a month on outsourcing, at 3 dollars per hour this generates 100 man hours per month ( not too shabby ). In the first month Joe generates 1000 dollars in affiliate commisions and has only spent (300 + 10) his ROI is hovering above 300% which is quite remarkable – this type of ROI is rarely seen in average stock and forex trading.