How to become a Successful Part-Time Stock Market Trader
Many people have an interest in day trading but don’t want to pursue it as a full-time career or give up their day job to do it. In fact, many professional day traders only trade part-time, trading for one to three hours per day, and then they move onto other activities. If you have considered day trading part-time, the following strategies can help you maximize your efforts in the least amount of time and prepare you for some of the pitfalls you might face.
Have a well-defined plan
It isn’t about waking up in the morning and going “what should I do today”. Stock trading requires planning and strategy-making. Else, there’s a good chance you will enter the over-trading territory, completely wrecking your money and risk management strategy. To keep impulsive trading at bay, set a few rules as to what dos and don’ts are on the given days. Set price alerts to stay ahead in the game. At large, know what you’re doing and what you should be doing next based on a well-thought plan and not emotions.
Spot your mistakes and flaws
It’s a long journey of starting, failing, learning, and winning. The latter three never stops BUT cycles for as long as you’re in the game. As a stock trader, it’s essential that you’re open to learning from your mistakes. You must proactively lookout for all the errors and blunders you have committed. And then make sure you don’t do the same thing the next time. This also means that you don’t always focus on the wins but also greatly prioritize your losses.
Make use of your weekends
Since you’re busy during the weekdays in your day job, all you have are your weekends. Plan your trading strategies at the weekend. Look at your past journal to learn more. Review your winning and losing trades of the previous week.
Read charts and news on Saturdays and Sundays; do technical analysis. Assess your price alerts. Reset your stop-loss, take-profit positions. In short, be careful about how you spend your weekends. Don’t waste them senseless.
You can become a Part-time trader if you trade regularly. Just have patience, be open to learn and take the right risks whenever needed.