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For those who are interested in day trading but are pursuing or plan to pursue a career in another area that attracts them, becoming a part-time day trader or share broker may seem like a great option. It’s a smart move, considering a majority of successful day traders only trade part-time during the best time of the day, and then move on to other activities. However, do not confuse part-time trading with casual trading, as many potential day traders fail to properly distinguish between the two. This article talks about the difference between Part-Time Trader of Stocks and Futures, how Emotions affect your trading results and how to fix it.

Part Time Trader vs Casual Trader

Someone who is a casual day trader might day trade whenever time or mood permits, or may even take a long break from trading. This way there is no strategy or plan of action, and since the behaviour of the market keeps changing throughout the day, trading at random intervals can ultimately spell doom. Also, being away from trading for longer intervals can result in slower reaction times, which can lead to costly mistakes.

A good part-time trader ensures trading is done regularly and during the time that best suits his or her trade. For example, when trading futures or stocks, a trader’s best bet is to trade near the official opening or closing time of the US share market. Given the Forex market, the best time to day trade is during the European session.

Some day traders choose to trade all day, but a part-time day trader will only need to spend about one to three hours a day trading stocks or futures. To gain the maximum returns while investing the smallest amount of time, a trader will need to concentrate around the official opening and closing time of stock trading, which is 9:15 AM and 3:30 PM India time respectively.

To take up stock trading part time and do it successfully, you need to focus on the opening slot. You need to log in to your computer or laptop by 9:00 AM or so, and prepare yourself. Usually, the first 30 minutes after the market opens are very crucial. It is during this time that the market is at its most volatile, and the chances of earning huge returns are the highest. If you have only an hour to spare, you can wrap up your day trading by 10:30 AM or stretch it to 11:00 AM if you can invest more time. As the market stabilizes during the day, the number of opportunities available will start dwindling and trades will take longer to complete by the time it is lunch hour. If you can only engage in trading during the latter half of the day, you can day trade from 3:30 PM to 4:00 PM EST. Day traders will try to close all positions before the closing bell, and the trading day will end sharp at 4:00 PM.

The same formula applies for futures trading too. The bulk of trading volume can be seen in the futures market just before and after the opening of the US stock market. This holds true especially in stock-related futures.

The biggest difference between traders who are profitable and those who aren’t is money management skills. It is important to know that higher returns come with higher risks
Keeping one’s ego in check is an important trait of a successful trader. The biggest stop-loss a trader needs is on trading itself. It is important to know when to stop. Successful professionals who have done well in school, college, and work by putting extra effort find it challenging to accept the fact that when faced with adversity during trading, the best thing to do is to exit everything and do nothing at all.

Day Trading Strategies

Day Trading Strategies Infographic Part Time Trader

Day Trading Strategies Infographic

How Emotions Affect your trading results

Infographic which shows Emotions affect your trading results and how to fix it.

7 Ways How Emotions Mess Up Your Trading Results & How to Fix It

7 Ways How Emotions Mess Up Your Trading Results & How to Fix It

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