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3 Helpful Techniques to Balancing Day Trading With Your Full-Time Career

Balancing Day Trading

Since the bitcoin evolution, many people are interested in day trading but are unwilling to pursue it as a full-time career or give up their day job to do so. In reality, many professional day traders trade just part-time, trading for one to three hours each day before moving on to other pursuits. If you’re thinking about doing some part-time day trading, the following methods will help you optimize your efforts in the least amount of time while also preparing you for some of the problems you can encounter.

Day Trading Stocks and Futures on a Part-Time Basis

Day traders just require one to three hours every day to trade stocks or futures markets. While some day traders trade throughout the day, the best possible profits in the shortest period of time are usually focused around the official open and closure of stock trading. These are scheduled for 9:30 a.m. and 4:00 p.m. EST, respectively.

After you learn trading and first start day trading stocks part-time, concentrate on the opening of trading. Prepare yourself for your first trades by sitting down at your computer between 9:00 and 9:15 a.m. If you don’t have much time, the first 30 minutes of the day are generally the most volatile, with the highest profit potential. Finish your trade by 10:00 or 10:30 a.m. EST if you have an hour.

If you have some more time, you may stretch your day trading out until 11:00 a.m. EST. As the lunch hour approaches, there are generally fewer possibilities, and deals take longer to execute as volatility begins to subside.

Consider day trading from 3:30 p.m. to 4:00 p.m. EST if you either can only trade later in the day or at the beginning and end of trading. The trading day concludes at 4:00 p.m. because day traders close all positions before or at the closing bell.

This is true for the stock market, but it also holds true for futures trading. Futures markets are expected to experience the highest trading activity and movement shortly before and after the US stock market starts. This is especially true for stock-related futures contracts, such as the E-mini S&P 500 (ES), which is one of the finest day trading futures contracts.

Day Trading Forex on a Part-Time Basis

If you are unable to trade during stock market hours, you may trade the foreign exchange (forex) market 24 hours a day, seven days a week, making it a flexible option for day traders who only have one to three hours to day trade at odd times of the day or night.

Currency pairings are used to trade on the forex market, with the euro and US dollar (EUR/USD) being the most common. Other prominent currency pairs are GBP/USD, AUD/USD, and USD/JPY. Each pair is most active at specific times of the day.

When trading the EUR/USD or GBP/USD (preferred pairings for day trading), the biggest activity happens around the opening of the US stock market and for a few hours thereafter, from 8:00 a.m. to 11:00 a.m. EST. If that time isn’t convenient for you, 1:00 a.m. to 8:00 a.m. EST is also an excellent period to daytrade.

Europe opens for business during these hours, and while this isn’t the most volatile time, you’ll see tradable tendencies that frequently emerge during this period.

This is also a viable option for those who dislike trading around the start of the US market. Each portion of the day has a particular dynamic, and traders may acquire a bias for one time of day over another over time.

Casual vs. Part-Time Trading: Telling The Difference

One of the drawbacks of part-time day trading is your mentality. Many potential day traders, for example, do not distinguish between part-time trading and casual trading. Many pros advocate working part-time, and if you follow their advice, you could trade every day during the best times of the day and then do something else with your time.

Being a casual day trader, on the other hand, means that you day trade whenever you feel like it or when time allows. This is not advised since it usually indicates that you haven’t done any meaningful preparation and that your trading activity lacks structure. Furthermore, because markets behave differently at different times of day, trading at random or casual intervals is not a smart strategic play.

Part-time traders do not trade continuously throughout the day, but they do trade on a regular basis. Casual traders may trade for a few days and then rest for a few days. These periods of exertion followed by rest dull your senses, delay your reaction times, and make you more prone to errors.

You can work as a part-time day trader, but not as a casual one. Trade on a desktop or laptop at a certain time each day, not on your smartphone in a work restroom stall. If you trade casually and unstructuredly, you will lose money while others that take trading seriously and concentrate on perfecting their method every day will keep making money.

Do part-time trading the right way, as if it were a part-time job or business, or don’t do it at all.

How Well Does Part-Time Trading Pay?

Most full-time traders who rely only on trading wind up trading part-time because they discover that only a few hours of the day generate the best profits for their strategy. As a result, the terms “independent part-time trader” and “independent full-time trader” frequently denote the same thing. In terms of money, this means not foregoing a lot of profit potential.

A part-time trader, for example, may discover that they can make $500 per day on average by trading only during the best two to three hours of the day. If they forced themselves to trade all day, they would sit and monitor their screen at periods when excellent trading chances are rare, resulting in a very similar daily profit outcome but a considerably lower revenue per hour of trading time spent.

When you trade during the optimum periods of the day for your strategy, you won’t lose much money compared to trading all day.

A Final Word on Part-Time Day Trading

You may simply day trade stocks, futures, or FX on a part-time basis. Find out what times of day provide the best trading chances for your trading strategy. Trading near the official U.S. stock market open or close is your best bet when trading stocks or futures. Day trading at the U.S. open or during the European session is the ideal time to trade the currency market.

If you trade on a regular basis, part-time trading might be beneficial. If you wish to dabble in lightly, you’re unlikely to build any consistency, which means you’ll make some money but then lose it all.

Learning how to day trade successfully may appear to be a full-time job, but after you’ve perfected your approach and method, day trading can be done on a part-time basis.

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