Are you interested in day trading but don’t want to give up your career? You can follow in the footsteps of many successful traders who only trade one to three hours each day. Find out how to become a part-time day trader.
The Open and Close of the Stock Market
Most successful day traders gain the best returns during the official open and close of stock trading, which are at 9.30am and 4pm. Part-time day traders hoping to trade stocks might be wise to focus trading on the open, as the first 30 minutes of trading can be the most volatile – so it can provide the biggest potential to make a profit.
The same rule applies to futures trading. It is expected to experience the most action and trade volume in the future markets before and after the opening of the US stock market. You must therefore utilize effective futures trading strategies to maximize profits.
The Difference Between Part-Time and Casual
There is a big difference between a casual and part-time trader. Part-time traders have a structured routine, as they will trade during the best times of the day to receive the most profit potential, before returning to their daily lives.
Yet, casual trading is a little riskier. Casual day traders often make the mistake of trading whenever they have an urge to do so, or have a little free time in their busy schedule. This can be a big mistake, as you will have no structure in the trading process. It’s important to remember that markets will fluctuate at various points throughout the day, so it isn’t a good strategy to trade once an urge hits.
Part-time traders are often more successful because they trade regularly, but not all day. As a result, they are sharper at making decisions and will enter the market with a strategy in mind. While casual traders might trade for many days, take a little time off, before returning, but will have slower reaction times, as a result.
Establish a Trading Routine
Trading is a serious business – and you should never view it as a hobby. It’s important to develop a trading routine to speed up your reaction times. Those serious about day trading must not use their smartphone or a mobile device. Instead, get into the routine of trading on either a desktop or laptop at select points throughout the day. The more refined your techniques, the more likely you are to make money from part-time day trading.
Those considering entering the trading market will be happy to learn it is possible to become a part-time trader, regardless of whether you want to trade stocks, futures or Forex. Yet, it is essential to bear in mind that there are various times in the day that offer the best opportunities – so always aim for the open and close of the official US stock market. What’s more, be consistent in your trading. Never trade on a whim, as it’s important to take the process seriously. So, trade regularly and intelligently to maximize your profit potential.
Founder Dinis Guarda
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