Introduction To Part Time Trading
Whereas a lot of people are drawn to the markets and sincerely have the wish as well as the will to apply themselves lots of these promoters and authors are unable to understand the needs of part-time traders. Unfortunately this leads a lot of ambitious traders to the false conclusion that they can not trade profitably since they are unable to trade full-time but this does not have to be the case when the individual keeps certain key fundamental criteria to make money trading the markets. At first you have to trade your own time frame. It is critical that you adopt a trading style which fits your own time frame. Do not choose to be a intermediate stock trader but then try to be a daytrader, too. Part-time traders have a limited time and it is important to find an approach which complements both. By trying to utilize several different methods a part-time trader will rarely find the success which he or she is looking for. One trader that we know of was deeply involved with another business and had to stop trading short term options but adopted an intermediate stock momentum method. He only made 8 trades that year but made a 200% return. Second, you should adopt a method which suits your personality. Time is typically a factor with part-time traders and many find that swing trading, trading in the intermediate time frames, and trading options can give them the potential returns which they look for while fitting the methods to their own personalities. One trader we know of is a writer but trades momentum stocks off of the weekly charts. On the weekends he checks his charts, adjusts any stops if he has any positions, and enters buy orders for any setups that may show up in only 5-10 minutes on the weekend. In the last 8 years, he has never reported a losing year and in 4 out of the last 8 years has had returns of 100% +. Another trader we know of swing trades stocks on a simple pullback method he developed using a simple indicator while still working as an engineer at one of the major auto manufacturers and during his first year he reported profits of over $200,000. Each of these traders found methods which work along with their personalities. The third thing that aspiring part-time traders have to do, as well as professional traders, is to absolutely have a system of risk control in place. It is almost universal trait that traders of all levels of experiences focus more on entries rather than exits. Containing your losses is going to 90 percent of the battle for part-timers because many will not be in front of the screen and must learn how to set stop loss points, learn when to reduce or increase the size of the position, and how to use diversification to control risk. When a trader loses his capital then he or she can not play this game and, in some instances, without proper risk control a trader can end up owing a lot of money when they traded on margin!
Moving Away From Intraday Trading
Fake Breakout Formations
The Magic Formula
The 10 Commandments of Support/Resistance Trading
The Weekend Market Analysis