Tip #1. Stick to a trading method or style that suits your schedule
The biggest problem for part time traders is time. If you only have an hour to commit to trading every day, this can severely limit your options. What if that one hour comes during a trading session that has low volatility? Strategies like day-trading or catching short-term trends probably don’t make sense right?
In that particular situation, you may want to take a look at scalping which is a strategy that lets you close your positions the same day or maybe switch to longer-term swing and position plays. The key is that before settling on a trading style, figure out your schedule and move on from there.
Tip #2. Maximise your trading time
Again, time is of the essence for part time traders, especially if you’re still in the early stages of developing your skills. So, you have to make the most of your trading time available.
Think about it this way: If your goal is to enter the world’s strongest man contest and be able to lift 450 kg off the ground, and you have only 10 minutes a day to work towards that, are you going to spend that 10 minutes a day lifting 2 kg weights a couple of times?
You could, but I guarantee you’re not doing the work necessary to build your muscles to lift heavy weights.
In trading, you have to build your trading muscles and skills. This comes not only from planning and executing trades, but also from other core trading tasks like doing market/chart reviews, back testing systems, trade journaling, etc.
On days when the market is slow, don’t just sit there waiting for a trade, take that down time as an opportunity for intense skill building by engaging in these core trading tasks and exercises.
The only way to develop real skills is with deliberate practice, so the more you can get in with your limited time, the faster you’ll be able to reach your trading goals.
Tip #3. Do your homework
This is a no-brainer, common sense tip right? But it’s even more crucial to follow. Since time in front of your trading station is limited, you most likely won’t be available during market shifting events or surprises. So, it’s even more important for you to know what’s driving the markets.
Educate yourself by reading trading books, by going through our articles on FSFInvest.co.za, and bookmarking the most relevant article. You’ll need to map out different scenarios and strategies, because your time away from the charts will keep you from being flexible to move as the market does.
Tip #4. Trade journaling is key
The fourth tip I want to share for you is the trade journal. It can help you offset the times that you don’t spend on the charts. How, you ask?
Journals won’t only keep you in line and help ensure you follow your trading rules, but it’ll serve as a tool to help you remember what’s happened during the hours you were trading.
Entering and reviewing your journal entries acts as more “trading reps,” in that it turns that one trade into two or three experiences, bringing you that much closer to trading mastery.
Tip #5. Have the right mind-set
Lastly but not least, you’re not a robot, which means that you can’t be in front of your trading station watching the charts 24/7. This means that you shouldn’t sweat when you miss on the big moves.
As long as you’re patient for a setup to materialise, there‘re always good moves to catch around the corner.
These tips apply to traders of different shapes and sizes. It doesn’t matter whether you’re a pro or a newbie, this should be helpful to you. However, if you’re a part timer, you have to keep your game extra tight.
Since you’re less flexible with regards to time, you have to be really prepared and disciplined when you trade.
While it may be difficult for part timers, it doesn’t mean that it’s impossible to be profitable. You can achieve it, as long as you set your heart and mind to it.
Remember to save money and money will save you