Having just a regular 9-5 job may not generate enough income for you, especially if you have outstanding bills to pay and a landlord breathing down your throat. Instead of taking up another job in the evenings, being a professional trader may seem like a better route.
Though it does not require manual labor work, it can still be difficult to attend to the ever-changing market patterns in the financial world. With a day job that takes up most of your time, is it possible to still be a profitable trader in your spare time?
Here is a list of tips and tricks for you to better manage your side job as a trader, and to prevent yourself from committing some of the common mistakes that others do.
1. Find a trading style that suits you
Finding a trading style that suits both your personality and your schedule is extremely crucial if you want your trading career to succeed. There are generally two types of trading styles—swing-trading and day-trading.
Swing-trading is a better style for workaholics who hardly have enough time to watch the market during working hours. You analyze your charts during the weekends and when you are off work and execute your trades during your free time as well, and hence swing-traders do not have to monitor the charts at every waking minute.
On the other hand, day-trading is usually preferred by forex traders, who are able to find some active currency markets at any given time. As long as you squeeze in a few minutes at certain points of the day, you will be able to execute your trades without being at a disadvantage.
After choosing your trading style, adjust your schedule slightly to ensure that you will have enough time to execute your trades. After this, choose the markets, brokers, and instruments carefully to complement your trading patterns and find out what is best for you.
2. Stick to your initial trading method
One cardinal sin that traders often succumb to is known as “system-hopping” where traders change their trading methods as soon as they realize that they are not making any profits. These traders would generally not see any improvements as they do not give themselves time to let their profits stabilize.
Furthermore, by constantly switching between trading methods, there will not be enough trading data to analyze in the long-run, thereby decreasing the chances of a profitable trade.
Sticking to your initial trading method and waiting it out is important for your trade review later on, as you will be able to effectively analyze your trading behavior and learn from your mistakes. Even though the beginning results may not be exemplary, you should always be consistent with your trading approach.
3. Prevent over-trading
Another common mistake that traders do is the lack of a concrete trading plan. Without a plan, you will tend to find yourself at a loss whenever you execute a trade. Be sure you know what to look for in a chart and in a good trade, and stick to your plan.
Do not respond to the market based on what you feel and instead, analyze the charts well and set your rules. It will just be a matter of time before the ideal price comes your way!
One tip is to switch on your real-time notifications to alert you of any movements in the market, and it will be extremely useful after finishing your weekend analyses.
4. Constantly improve yourself
Many a time when traders realize that they are not earning any profits from their trades, they will put the blame of their failure on their trading methods, resulting in rookies engaging in “system-hopping”.
Most of the time, it is the lack of discipline, professionalism and a gambler mentality that is the cause of their failures. Hence, traders should often assess their abilities and identify their weaknesses before putting the blame on something else altogether.
Traders should take responsibility and look for ways to improve their skills, especially during the weekends when they have more time. Moreover, taking the focus off monetary goals and instead focusing on the characteristics of a good trade will definitely help traders out their trading skills into perspective.
5. Prioritize your time properly
When you decide to take up trading as a side job aside from your regular job, making up for the lost time and making extra time is crucial in helping you set your goals straight. If you are serious about having a successful trading journey, waking up an hour earlier and sacrificing some of your break time will help you manage your time better.
Putting in extra effort in the beginning so you can reap the fruits of your labor later on will indeed be worth it. One tip is to review your daily schedule and filter out time-wasters. By getting rid of just one source of a time-waster, you will be able to squeeze in more time for your trade executions.
6. Don’t get caught up with the money
An important thing to note is to not focus on how much you are earning and how long it will take before you can quit your day job for good. Focusing on the monetary side of things will only throw you off track and tempt you into unhealthy trading habits. It can also demotivate you as you realize how far away you are from achieving your goals.
Instead, take baby steps and focus on what you can improve in the present. Create a checklist of the immediate tasks you have and avoid snowballing your to-do lists. Start taking measures and see your improvements grow with time.
The bottom line is to just be patient with yourself and put in as much effort as you need for long-term success. Choose a style that suits your trading needs and avoid getting caught up with your monetary improvements.
Give yourself time and allow room for failure. In time to come, your trading abilities will improve and you will soon be able to reap your rewards. More so, if you want to learn what is the easiest way to start trading CFD’s with Plus500 check out business24-7.ae for more information.