“Amateur traders want to be right while professional traders want to make money.” This was the opening statement of Paul McCarthy, one of the top financial market trading advisors at Wilkins Finance at a recent seminar for part-time traders. According to him, being a part-time trader requires even more experience as that of a full-timer as you need to time your trades exceptionally well if you want to make profit. McCarthy also compiled a list of 20 tips part-time financial market traders should make use of when wanting to run a successful side hustle.
Discipline is everything
When you are a part-time trader, you need immaculate discipline to stay on the ball without losing grip of your trading strategy.
Stay away from chat rooms
If you want to stay up-to-date with what goes on in the trading world, make sure your brokerage account allows notifications of important updates. Traders that spend a lot of time on chatrooms often have ulterior motives or spread confusion about the market stability.
Use your trading plan wisely
When trading, make sure you update your plan regularly in accordance with what the current market price is doing.
Cutting corners means cutting profit
Don’t think you can throw a dart in the dark in hopes of getting lucky. Plan and execute your trades with precision to get profits that will reoccur.
Don’t go for the obvious
If you see a trading option that is easy to spot, it is likely that other traders will follow the same route. That makes you part of the crowd and lowers your profitability.
Don’t break your own rules
If you think that rules are made to be broken, you’ll reconsider when you have broken your own trading rules and end up with major losses.
Market experts are not always right
It is easy to give others advice about trading when it is not your money at stake. If a position sounds too good to be true, it usually is.
Listen to your mind and body
If you are good at math, you already have one side of this tip checked off. In order for your brain to fully concentrate, you need to balance it with relaxation such as a quiet walk in the park.
Avoid the urge to splash out
If you make profitable trades, you may think of that new car you desperately want. Instead of splashing out on it, push the profit back into your part-time trading plan to potentially give you even bigger profits.
Keep business and personal matters separate
If there are turbulent matters in your personal life, do not let it interfere with your trading as this will lead you to make emotional choices, potentially costing you a huge chunk of profit.
If you fail, don’t try to get even
Should you make a trade that goes sour, take a step back and evaluate your mistakes before diving into another trade that can cause you to make the same mistake again.
Warning signs are there for a reason
If you see a red light flashing on your trading chart that predicts danger ahead, do not ignore it. Being cautious is better than losing all your invested capital.
Don’t let tools make up for inexperience
If you are a new trader and invest in expensive tools to help you make trades, you are counting on these tools to be smarter than you are.
Don’t fall head over heels
Many traders listen to experts and trade according to what they say. Rather use the information you gather and incorporate it into your own strategy.
There is no magic formula
If you are looking for a magic formula for trading, you’ll never make profit. Trading takes experience and effective risk management.
Don’t expect to have huge paychecks each month
Some months may give you profitable trades and other months may give you dry spells. It is in these months you need to re-evaluate your strategy and search for new opportunities.
Just because it looks good doesn’t mean it is
If you feel good about a trade, do not break your trading rules in order to try and pocket maximum profit. Enter and exit a trade according to your trading plan and do not stray from it.
Simple is best
Do not use expensive market indicators when all you need to do is look at the price action.
Don’t cry over spilt milk
If you make a trade that goes sour, do not give up trading because of this. By making a few losses, you learn to trade the right way.
The adrenaline rush
Many traders trade for the pure adrenaline rush. Trading just to feel good about the rush will lead you to make choices you will later regret.
