How have I managed to generate $1,000 every week in passive income in 2023

Abdalla A. Mahgoub, MSc / CISI
7 min readFeb 19, 2023

Introduction

For as long as I remember , I always wanted to have some sort of side hustle , aside from my job . However , I had no direction on what to do I have tried numerous approaches to capitalize on many ideas that I thought might work, but I have failed miserably so many times. To make matters worse, failing is one thing, but to fail while losing your hard-earned cash is just crazy and hurtful to the bone. Hahaha. I hope that this one article can help improve your life.

I am grateful for the knowledge I gained during my Master’s degree at the University of London, Goldsmiths. It broadened my understanding of various aspects related to investments and business while leveraging Data Science analysis techniques. Without any delay, here are the income streams that I have adopted to achieve a weekly profit of $1000:

  1. Writing & publishing articles

You can simply help others by writing articles for payment, and that’s what I did. Besides writing and publishing articles myself, I also assist others, but for a pre-agreed price. Usually, I earn about $10 to $50, but it’s not always certain, as demand fluctuates.

2. Stock dividends & referrals

Due to my involvement in the investment field as an investment operations analyst, I find this to be a no-brainer. To be truthful, I’ve lost a lot of money trying to beat the market, but I’ve gained experience with every loss. I’ve come to a realization that I need to change my investment constraints and objectives on how I view things. Since I don’t have a lot of money to begin with, I started contributing to my portfolio bit by bit every month from my monthly salary. My plan is to invest at least 60% of the money I allocate for investment into dividend-paying stocks, 20% in growth stocks, and 20% in potential stocks.

Mainly, I invest in the US, Canada & UK stock markets. I will talk in detail about my portfolio at a later stage, including how to select a stock, stock allocation, fundamental analysis, and how to leverage data science techniques to choose these stocks. But for now, I just want to talk about referrals to my stocks account.

I also earn money from referrals. I have an account with SaxoBank, so if a referral opens an account with my link, the new client will receive reward points that could lead to commission reduction.

It’s true that SaxoBank is on the expensive side when it comes to commissions and fees, but what I like about SaxoBank is their amazing research reports covering all sectors, these reports gave me many investment ideas and pointed me into direction that I didn’t think about pursing before. Also their platform looks amazing and easy to use.

SAXOBANK market watch Dashboard
SAXOBANK’s Research portal

SAXOBANK has recently lowered its minimum initial investment from $10,000 to just $2,000 or $5000 for opening an account with them, depends on where you live ( Europe, Americas, Middle East,etc). If you’re interested in opening an account, you can use the link below.

https://www.home.saxo/en-mena/accounts?cmpid=ac_em_en-mena_ref&refid=d93e218d-d25b-4809-9a70-55f8e8535460

For this section I usually make about $250 to $300 a month in dividends and Referrals, not bad for a small constructed portfolio , I can tell you that.

3. Self Developed-Complex Structured Products including Warrants, CFDs, derivatives and Stock options

I don’t even know where to begin with this one. Imagine a bowl of Japanese ramen with all different ingredients coming together to give you something that tastes like heaven. Enough said, as I can’t explain each of these products. It would take me essays and at least 10 articles to get to the fundamentals of things, which I will do at some point.

Complex products like this one involve investing in products that will generate profits for you in the form of premiums, from forward contracts and arbitrage trading to derivatives and stock options. I suggest you read more about it and learn, and don’t attempt to invest in it unless you have gained enough knowledge and confidence to test the waters, as the risk profile for this investment is very, very high.

I also took advantage of the knowledge I gained from my data science degree and applied it to correctly value these products, using the Black-Scholes model, binomial pricing models, and of course, the Monte Carlo method to predict price probabilities for a given duration of time. You need to consider many factors to determine how probable a stock option or a derivative might go up in price or go down, taking into account the risk of holding these assets more than you should. Some of these factors are:

· Current price of the underlying assets in question

· Current economic outlook and year predictions

· Volatility profile of the underlying asset

· Open interest and current volume traded for contracts

Once you have a basic grasp of these factors, you will have the edge to trade with confidence while managing your risk correctly. I make about $600 up to $1,500 every week by trading the market, navigating different complex structured products and designing one myself.

But again, do not attempt to invest in this segment without prior knowledge and education, or you will literally lose it all. I will provide some of the models that I developed on Python and other technologies to evaluate these products that helped me greatly to reach my almost risk-managed investment for this segment. With the help of these data science technologies, such as understanding the different volatility profiles for underlying assets, for example, the results below:

Volatility example between Luminar vs Medical Properties Trust Fund executed in Python

You can clearly see that the weekly and overall volatility results for the MPW stock price are lower than the LAZR stock price. Hence, opening and selling some puts on the MPW stock will probably be a success since the stock won’t move a lot and you will end up making a profit by collecting premiums in the hundreds and thousands of dollars.

Of course, you need to look into other factors besides just volatility, but I will dedicate another article to evaluate these kinds of products.

4. Selling apps & code snippets

I offer code snippets and data science solutions in Python for sale, which can be useful for a variety of applications and can help streamline coding and data analysis tasks. I typically earn between $30 and $100 from selling these snippets, but the amount varies based on demand

5. Data Science Consultation service

I do consultation jobs on the side for small-sized companies and startups. I usually only take on consultation work if I am available, but when I do, it pays me handsomely. I can earn up to $2,000 per consultation, which includes designing and developing the whole machine learning cycle, including data cleaning, wrangling, and model training.

6. Focus , read the market and reinvest , reinvest and more reinvesting

Be greedy, but also be cautious and risk-averse. The only way to achieve a balanced portfolio is to continuously reinvest at lower prices or simply hold onto a pile of cash. Depending on your investment objective, deploy funds based on your own criteria. For example, some people like to deploy once their cash reaches over 20% of the total and retain about 10%, and so on. Find your own style and stick to it. Trust me, this will help you, especially during rainy days.

Whats next for me

  1. eCommerce

But it’s not your usual typical eCommerce business. It’s completely different with a bit of a twist. I won’t talk about this idea, as I’m still developing it, and it’s a bit of a secret if you ask me

2. Publishing my own Book

I have already started approaching many renowned world-class publishers, such as O’Reilly, Packt, Apress, and others. Due to my strong interest in the field of Data Science and Artificial Intelligence, to the point of obsession, I have decided to write a technical and engaging book on these topics. As a graduate with a Master’s degree in this field, I am excited to share my knowledge and insights.

3. Rental income

Investing directly into real estate market has been always my goal. However , getting into this market require a substantial amount of capital.

Closing statement & final thoughts

Most of the initiatives that I have adopted are ongoing and still growing. The thing about developing an idea is that you come up with something better every single time, and I love it. These processes have helped me significantly grow my investment portfolio. Will I buy Gucci clothes or a Ferrari? No, these things don’t make sense to me from an investment standpoint. In fact, I see them as liabilities. I am here to create well-standing assets that can bring me ongoing wealth. I literally only sleep for 5 hours a day and can’t sleep if I don’t execute some of these plans. You really need to find your niche, and as I always say, “You need to find your Mojo” and breakthrough. It took me years to get to where I am, but you have to start somewhere.”

I hope this has been helpful! Please let me know if you have any further questions or if there’s anything else I can clarify. Thank you for taking the time to read my lengthy article. I hope I have motivated you to start doing something for yourself. I’m not saying you need to become a hustler or digital nomad, simply do what you love while making money from it, never do something for free.

If you’re interested in more technical content on evaluating asset classes and making money using data science techniques, please follow my Medium channel.

Also, feel free to message me with any questions or add me on LinkedIn using the link below.”

I hope this helps! Let me know if you have any other questions or if you’d like me to clarify anything further.

LinkedIn: https://www.linkedin.com/in/abdallamahgoub/

Medium: https://abdallamahgoub.medium.com/

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Abdalla A. Mahgoub, MSc / CISI

Master's in Data Science. Technology Entrepreneur ,Data Scientist, Investment Ops Analyst ,Strategic Business developer,Speaker ,Writer, Full Stack developer