In today’s episode, you’ll discover how to trade part-time successfully without quitting your full-time job.
So listen to it now…
Hey, hey, what’s up my friends?
In today’s episode, I want to share with you how to trade part-time successfully without quitting your full-time job.
When you trade part-time, there are a few things you must pay attention to…
1. You must trade off the higher timeframe
If you’re a part-time trader, you only have like an hour a day to watch the market. And if you’re trading like the 5 minutes timeframe, where every 5 minutes a new candle will be painted on your chart, you’re pretty much glued to your chair for a few hours.
Because with every new candle, a new piece of information is coming up every five minutes.
But if you trade off the higher timeframe, like the daily timeframe, every new candle only comes out every single day. This means a new piece of information which you might act upon only comes out once every day.
You don’t need to spend a lot of time watching the markets because the information is not ready yet until the candle closes. That’s why if you trade off the higher timeframe, you don’t require as much time to watch the markets.
So you want to be focusing on the higher timeframe, anywhere above the 4-hour timeframe is suitable, for those of you with a full-time job.
2. You must do your homework on the weekends
The beauty of trading off the higher timeframe is that you can do your homework on the weekends. When you’re trading the market, and you’re like:
“Oh man, I have no time to analyse the markets, I’ve got work to do and kids to fetch”.
Stuff like that.
But if you’re trading off the higher timeframe, you can set aside time on the weekends to do your homework and analyse the market, to prepare for the week ahead.
For example, every Friday I would analyse the market and see which markets I want to be trading for the coming week.
If you’re trading off a bounce play at support, you’re looking to buy at support. If the price is near support, you’ll know that, when the market opens the coming week, there’s a possibility that the price might get rejected at the support level.
It could be a potential trading opportunity for you to go long. So this is where your homework comes into play. You want to do it on the weekends, identify your trading setups, and see which markets have a trading setup that’s almost completed.
You want to highlight those markets for the coming week because there’s a highest possibility that those markets will have valid trading setups that will occur for the coming week.
3. You must have a routine to trade the markets
When the market opens, you want to have a routine or a habit of trading the markets.
Let’s say you’re based in Singapore, and you have a full-time job. For most people, the 3 available time you have is before work, lunchtime and after work.
So before work, depending on which time zone you’re in. In Singapore, before work hours is when the US markets just closed. If you trade off the US markets, let’s say the FX markets which close around 5 am Singapore time.
Before you get to work, you can analyse the daily charts and see where the price has closed. Is there any valid trading set up to enter or any orders that you need to put into your platform? You can do this before work.
Then maybe during lunchtime or after work, you can check to see if your orders are triggered. After work, if the trade is triggered, you can journal down your trades, screenshot your charts, and write down your entry, exit, stop loss and stuff like that.
So the third thing is that you want to have a fixed routine of trading the markets, even though you have a full-time job.
4. You must look to scale up your account
Yes, you might be trading part-time. But trading is a compounding endeavour. The more money you have, the more money you can potentially make. A 20% on a $1,000 account, is like $200 a year. With 20% on a $1 million account, that’s about $200,000 a year.
Same 20%, but the only difference is the size of the account that you’re trading. In trading, you’ll need money to make money in this business.
So, for example, let’s say, you know, you start off with $1,000 in your first year of trading, you make an average of 20% a year, if you don’t add in any funds, at the end of 20 years, you’ll have about $38,000. A pretty decent amount.
But if you have a full-time job, you can set aside another $1,000 a year, which is slightly less than $100 a month to your trading account, at 20% a year, the amount snowballs to about $262,000 after 20 years.
You can see that’s about 7 times more than what you had earlier had you not decided to add in funds regularly to your trading account.
So the fourth thing is that you must always look to add money to your trading account. The more money you can add in the faster you can compound, the more money you can make at the end of your trading journey.
With that said, I hope these fourth tips help you and I wish you good luck and good trading. I’ll talk to you soon.