There’s a saying in the housing game that’s tried and true: location, location, location. Buy the right house in the right place and you’re almost guaranteed to make a profit. In business, the same ethos used to apply. Shopping centres with a collection of outlets tend to outperform high street stores because people have a reason to stay longer. Silicon Valley has become the world’s tech hub because companies with similar interests converged on a single location. However, over the last decade, the value of where you’re based has decreased. Thanks to the internet, location isn’t always important for entrepreneurs and investors.
We can do almost anything from anywhere in the world, you don’t have to be in a certain place to make money. Wherever you lay your digital hat is home in today’s world. One of the best examples of borderless business is trading. When someone supports a business, they can invest in it. This means actually buying stock and putting in money to help it grow. In turn, you own a small percentage of the company. The potential upside to investing is that you receive a dividend payment when the company makes a profit.
When location matters and when it doesn’t
However, in some way, location does matter in terms of investing. Why? Because you not only need connections but knowledge of both of the company and the culture surrounding it. After all, financial events do not happen in a bubble. Trading, on the other hand, allows you to speculate on the fortunes of companies without necessarily owning a piece of it. Stock trading online via contracts for differences (CFDs) is a prime example of this. Instead of buying shares in a company, you’re trading on the value of these shares. Because you don’t own a physical asset, you can take either side of the coin.
In other words, you can speculate on the share price increasing or decreasing. The upshot of this is that you’re not as dependent on it. You don’t have a close personal relationship and, therefore, don’t need to same intimate connection needed when investing.
The market for CFDs and other types of trading options has surged in recent years thanks to the internet. Depending on the metrics you look at, more than 9.5 million people are trading online. The growth of online trading links back to the concept that location no longer matters. Modern trading platforms provide access to thousands of investment options across thousands of international markets. From Fortune 500 companies in the US to emerging tech companies, anyone can trade virtually anything.
Opportunities abound online
Naturally, access to international trading options is great but without information it is challenging. Again, this is where the internet has removed international borders and nullified the importance of location. As well as trading signals and technical reports, the internet is awash with information. Every major news outlets, from the BBC to the Wall Street Journal publish content online.
Add to this a selection of online-specific sites and it’s just as easy to learn about the local developments in Nigeria as it is in Northampton. While there are certainly advantages to being close to a company, it’s no longer a necessity. If you happen to be in the vicinity of a start-up looking for investment, it’s a great opportunity to get a feel for what it has to offer. That’s something you can’t do remotely.
Even though the internet gives you access to plenty of information, some things are lost in translation. However, the counter to this is that you can access a lot more opportunities online.
The internet allows you to cast a wider net than was previously possible because the location doesn’t matter. That’s something worth remembering the next time you’re searching for a new venture. Don’t restrict yourself to what’s around you because, thanks to the internet, there’s a whole world of opportunities out there.