To Be or Not to Be a Part-timer
This may be a surprise to anyone who hasn’t spent a lot of time in the trading – it is a profession filled with people who only work part-time. Well, part-time on their trading.
Most traders trade part-time while busy with other things. These things include full-time jobs that guarantee security and make sure that the rent/mortgage is paid on time. It’s rare to find someone who is exclusively a full-time forex trader.
Part-time trading refers to trading when you have other commitments, such as a full-time job.
Part-time trading also refers to the fact that you could not follow the markets on a regular basis. Usually, someone who trades half-time is more involved when there is a big event on the news, or uses system alerts, or trades longer ranges.
It’s a Risky Business If you rely on your monthly income via trading, you’re more likely to end up with major stress overload. There are highs and lows, and no sure guarantees of income from one month to the next. This is why traders rely on other, more secure careers alongside trading.
There are several types of strategies that are very helpful when you work as a part-time forex trader. We will focus on two of them:
A very popular strategy, with which you can determine lines of support and resistance and know where to place stop loss and when to take profit.
When the price has made a strong advance it is marked as a demand zone and when the price has made a strong retreat it is marked as a supply zone.
When the market signals you these points, these are convenient points for entering the trade.
The advantage is that you could pre-mark the points you want to make an order and wait for the market to reach them, you know exactly your entry and exit points.
We wrote a complete guide about Supply and Demand.
Probably the most convenient strategy for part time traders and is exactly like it sounds.
You set up the entry point and the stop loss for the trade, and take profit and that’s it!
Everything that happens in between in the market doesn’t interest you, you’re indifferent to it, you don’t have to sit in front of the screen, you don’t have to manage your position.
The biggest advantage is that you can use your free time to do other things.
We wrote a post about The Advantages and Disadvantages of Set and Forget Trading.
One of the key benefits is the possibility to earn extra income, without spending all your time in trading.
You can trade for periods of time, you don’t have to sit in front of the screen all the time and keep track of your trade. You can set stop loss and take profit In advance.
Forex is one of the best places for part-time traders if you know how to manage your risks properly.
First, the fact that Forex markets are open around the clock allows traders to adjust their time to trading according to their daily routine.
Secondly, in Forex you could use leverage, leverage provides you the opportunity to earn a nice income, even if you use a small amount of money for your trade.
Because you have income from your regular job, you do not have to trade a big account in order to make a profit. You could trade with small amounts, be calm even when you lose because you have no pressure to make a profit.
Since you are calm and not under pressure to make a living, you have the ability to make informed decisions, be tolerant, and of course, learn from your trading mistakes.
you do not have the pressure of entering the market again, just because you must earn for your living.
In addition, today there are options to trade with a remote prop trading firm and trade at the expense of the company, so you have the ability to make a nice income without risking your money even in part-time trading.
Especially if you have a small account or you don’t want to risk a large amount.
Another important point is that a full-time job is not diverse. Generally, people prefer to do more than only one task but having one task to attend to day in and day out can be quite mundane. Like with any job, most of us want variation in our daily activities. One day could be devoted to administration and the next might be devoted to the practical side of whatever you’re working on.
For traders, this may become conflicting. Since good trading often boils down to the repetitive execution of a successful and well-crafted plan and strategy. Variations in the trading day can lead to devastating disruptions in the flow of a dedicated trader. One small tweak here or there can fundamentally alter a trader’s success. Therefore, many opt to trade part-time in order to fill the rest of their time with diverse tasks or roles to break their monotonous trading.
Remember that unlike other work, you could not ensure additional income, you’ll invest your time and money, but still, you can actually lose money.
To be a successful trader takes time, you have to learn how to trade and gain experience, but that is still not enough. You need to develop a trading plan and learn to deal with the risks.
All this will come at the expense of your family, friends, and hobbies.
When you have a full-time job, you miss quite a few opportunities in the market that are created by strong movements. These movements in the market usually happen when something unexpected happens, such as a political news event or an unexpected economic event.
When you only work as a part time forex trader you don’t always have the possibility to take advantage of the market moves for making money.
It All Boils Down to Hard Work – Whether you want to trade part-time or full-time, you will need to invest hours in order to master the work. It takes incredible concentration and the strictest discipline. This proves even trickier when you can’t or don’t want to devote 100% of your time to trading.
Finding your routine and moving along the learning curve is challenging, but once you have it – you’ll own the winning formula. There on, you’ll be able to enjoy both worlds: a secure income from your daily career and the excitement of trading professionally, yet only part-time.
If you nail this, whatever you earn while trading is merely a bonus and comes with far less pressure than it would have if you were to rely on this for survival. But remember not to slack, as it’s called “part-time”. You’ll still need to work incredibly hard in order to make this dream a reality.
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