How to trade with a part time job? Have you ever work up one day to find yourself stuck in a dead-end job with little to no opportunities for advancement. With paltry pay, you have no chance of paying for a vacation for your family, let alone afford the time off. Being stuck in a lousy part-time job with no money can be soul-crushing. Learning how to trade with a part-time job will give you benefits that far outweigh the financial. The freedom of lifestyle that trading gives you can’t be measured in dollars and cents.
You’re likely wondering how trading leads to freedom? For some, it means travelling the world, while for others it is spending extra time with their kids. For me, it means setting my own hours and not answering to a boss. Have I got your attention yet? Likely yes, so keep reading, and I’ll show you how it can be possible for you.
Table of Contents
Factors to Consider if You’re Thinking of Trading
You do not hold any stocks overnight. Whereas with swing trading, you hold overnight and up to two weeks.
Do you know what amount of time you are able to commit to trading? Are you a busy parent working 9-5 and not looking at the markets during the day? Or are you flexible and able to participate during the busy opening and closing power hours? There are options in trading whether part time or full time.
Why It Can Be Difficult to Trade With a Part Time Job
Depending on your strategy, day trading typically requires a significant time commitment. Since day traders change positions at such small intervals (1-minute, 3-minute, 15-minute, etc.), they have to constantly monitor their positions. Because of this, many who call themselves a day trader treat it as their full-time job.
Alternatively, many people I know make their money within the first two hours of the market. So if you can work your part-time hours around the market hot times, you can trade with a part-time job.
Can You Work Your Part-Time Hours Around the Best Trading Times of the Market?
It won’t take you long to figure out the market “moves” at certain times of the day. Generally speaking, we see the highest trading volume and volatility from the market open (9:30 am EST) until around 11:30 am EST.
This is the best time for momentum traders to trade! There are lots of volumes, which means lots of buyers and sellers, which means that you can easily get in and out of traders.
My focus has always been on trading within the first one or two hours of the market’s opening. Then I have the day to myself to honour the rest of my commitments in my life.
Don’t be discouraged if those hours don’t work for you because we also have end-of-day trading. Generally speaking, from 2:00 pm on, we start to see volatility and volume increasing again. More importantly, sharp reversals and significant price moves begin to happen.
The main point here is that the last several minutes of trading can be particularly active, with big moves on high volume. You can use late-day trading to your advantage if you’re unable to capture the morning moves.
Factors to Consider When Deciding What Trading Strategy to Employ
Nowadays, a common mistake for many new traders is that they don’t take the time to nail down the basics. What I mean by basics is the amount of time and money you have available, along with your personality temperament and risk tolerance.
Let’s say the time of day is not crucial as you choose to trade futures. However, don’t think you’re out of the woods just yet. Which brings me to my next question: Have you considered how you’ll react when a trade goes against you? Are you going to panic and sell or stick to your strategy. How will you break it to your spouse that you’ve lost $5,000 because you didn’t practice safe risk management?
Why I Like Swing Trading
You don’t need to be glued to your computer screen every day. In fact, you can even maintain a full or part-time job while trading. So that you might avoid being fired, limit the amount of time you spend checking your charts at work.
Less stress and chance for burnout.
Personally, this one rings true to me. In the beginning, I was staring at charts the whole day, and it was exhausting. By either swing trading or trading during volatile times, your risk of burnout is significantly reduced.
Figuring out what training software to use is a bit of a pain in the b*tt. However, all swing trading requires is a simple laptop with conventional trading tools. You don’t need expensive equipment and data subscriptions. Further to this, the internet has tons of free resources and scanners. I love FINVIZ for their awesome scanners and TradingView for their beautiful charts. Just make sure you are good at reading stock charts.
Because swing traders typically hold their positions for several days or weeks, they buy themselves breathing room. I can honestly say that it’s entirely possible to profit from swing trading on a part-time basis while holding down a full-time job in something else. Let Bullish Bears show you how for free.
The reality is, the flexibility makes it an excellent option for people who are short on time.
Take, for example, the single mom who works a full-time, Monday to Friday job. She does not have the luxury to watch charts for set-ups in the am; she has to work. Because of this, swing trading would be a good choice for her!
Learning how to trade with a part-time job is possible if you’re willing to take the time to learn. There’s no magic bullet for success. You’ve got to embrace the process and enjoy it because you can’t escape the hard work it takes to get better.