How can you become a part-time profitable trader

Becoming a stock trader has always been a dream for many people. People love to feel the heat of the trading room as the traders make a decision and invest their hard cash into a particular stock. If you ever join the professional trading community in Hong Kong, you will know what it feels like to become a fulltime stock trader. But we are not going to tell you to become a fulltime trader as the pressure might take you the breaking point. We will teach you the perfect way to become a part-time trader. Most importantly, you will know how to become a profitable trader. Regarding the profit factor, very few investors are making consistent profit in the investment industry. So, you should be careful about the trade execution and only then you can make some money. Without further ado, let’s learn the key steps to becoming a profitable part-time trader.

Observe the market

You must have great observing skills. Being a part-time trader, it’s hard to manage time to analyze the price data for a long period of time. Most probably, you will be in a day job while taking trades in the financial market. It’s therefore very important to develop keen knowledge of the market by observing the price data. If you have an hour, focus on that period. Don’t waste time thinking that you can learn things later. In simple terms, you have to devote yourself while observing the data. It will help you to grow the inner sense to feel the rhythm of the market.

Start analyzing the variables

After you spend some time in the market, you have to learn more about the stock trading business. Start analyzing the variables so that you can take a quick decision when the market is extremely volatile. Things might be hard but you have to do it. It’s not like doing calculus in math class. You have to analyze the graphical data using a professional platform. Smart traders prefer SaxoTraderPro as it is well equipped with the advanced tools to help you analyze the market data. You might think you know a lot about this market after following a few analytical tips, but you are completely wrong. You can check this using a demo account.


Open a demo trading account

Before you invest money in the stock market, you should open a demo account and see how things go. The chances are high, you will make a quick profit and then blow up everything. It happens to the mass people. A well-balanced trading strategy is required to trade the market like a pro trader. Without having a well-balanced trading method,it will be very hard to overcome the losses in trading. You won’t be able to deal with the variables. So, spend a few months in the demo account to create a professional trading method that will allow you to earn money.

The transition period

The transition period is the most difficult phase you will ever have as a stock trader. When you will open the real trading account, you will be afraid to take the trade. A few losing trades will make you vulnerable and force you to trade with bigger lots. You will lose concentration on your day job and ruin everything. But if you take some smart steps you won’t have to go through this complex momentum. Take a 1% risk in each trade and make sure you win at least 2% of them ifyour assumption is correct. In the trading terms, you have to find trade setups with a 1:2 risk to reward ratio.

A good risk management policy will be a lifesaver still you must manage to trade with low risk. Stop focusing on a high-frequency trade execution and execute one or two trades per week. Continue this process for a few months and decide whether you should become a fulltime trader or not.

You May Also Like

More From Author