Is part time trading the way to go?

In the past it was not possible to be a trader in any form unless you were a full-time floor trader. However now, due to technology advancements and the internet, it is possible for anyone to start trading; and to do this part-time to generate an additional income or just as an occasional hobby for fun. Many have an interest in trading but don’t actually want to pursue it as a full-time career, and so trading part-time is the perfect solution.

By becoming a part-time trader, you can keep your day to day job, with a guaranteed income, but also see benefits from successful trading on the side. This means the time you are trading will be limited so you have to make the most of it. Make sure that you plan your time effectively and don’t make trades for the sake of it during the time you have allocated. If there is nothing available that matches your plan and trading style; it is always better to wait until there is. Furthermore, it is times like this which can be useful in conducting research, especially when you first start out, into different markets, different trading techniques and the wide array of tools available to you. So for example, City Index is a good resource and offers insight into spread betting, crypto trading, share trading, etc; together with the chance of utilizing demo accounts to gain valuable experience.

If possible when part-time trading try to plan to trade when many of the markets open at 8.00 to 10.00am; as this is the most volatile time and when there is the most potential for profit. If you are only able to trade later in the day, then try to make it between 3.30 to 4.30pm, which is the close of the market. Ideally you will be able to dedicate time to trading at the beginning and close of the stock markets. If you are not able to trade at this time or in fact not able to trade at the same time every day it is still possible to be a part-time trader now due to the flexible nature of markets such as the Forex one, which can be traded in the form of spread betting 24/7.

It is important not to confuse part-time trading with casual trading. If you are a casual day trader, you will find yourself day trading whenever you have the urge or whenever time permits. This isn’t the best way to go about trading as it will generally mean that you have no real plan and you are not following a real strategy; therefore you are unlikely to generate consistent profits.

Being a part-time trader can sometimes be frustrating, especially if you find yourself missing out on a big, profitable trade. But it is important to focus on just having a profitable plan. In time, with experience, there may come a time when you are feeling really confident in your trading abilities and have a big enough bank; that you may take the plunge and decide to become a full-time trader. It is definitely a good idea when first starting out to be a part-time trader, to firstly see if you enjoy it and also to see if your methods are going to be profitable and whether or not they could be scaled up.