Meet Bill, an up and coming trader. Bill is a 32-year-old full-time office assistant who works in the city and tries to get the best out of his life as best he can. He has a passion for trading financial markets and hopes to be able to turn that passion into a full-time job one day. He loves learning about the markets, trading, investing, financing, etc. However, he feels that he has a big problem that is preventing him from moving on to the next level of success. This problem is time.
Bill works more than 40 hours a week and feels like he missed most of the best trading configurations because he always works.
Don't worry, Bill, this article is for you and the many dealers out there who feel just like you.
You don't have to stand in front of the charts all day to trade profitably. In fact, for reasons that we will discuss later in this lesson, it should be considered a great advantage not to be in front of the charts all day.
In this lesson, I will show you an effective part-time trading routine for people with jobs. You will see that you do not have to worry just because you are far from the charts. If you understand some key points and know what to look for, don't miss a thing.
The "how" and the "why" of part-time trading
Let's start with the "why". This is easy. Part-time trading literally has so many advantages that it's almost fun. I wrote about topics like "less is more" in trading and low-frequency trading, as well as a fixed and forgotten trading approach and all the advantages of this type of trading.
The main reason why you should consider part-time trading and learn a part-time trading routine is that it is very easy to integrate it into your already busy schedule. You don't have to do without trading simply because you are very busy with work, school, family, or whatever.
I have had the greatest success in my personal trading career by following the basic principles of this lesson. It just so happens that less frequent market analysis and less frequent tracking of your live trades is also much better for your long-term trading performance. More on that later.
How do you act part-time?
Part-time trading is about adapting your analysis and trading routine to your daily routine. So if your job is a typical 9-5 workday, you can go through the charts twice a day in the morning and in the evening. It shouldn't take longer than 10 to 20 minutes each time.
If you've been following my lessons for a long time, you know that the New York Close is the most important (and why you need New York Close Charts). The NY close is considered the “end” of the trading day and we are mainly concerned with the timeframes of the daily chart and in particular with analysis and trading at the end of the day.
Now the New York closing price depends on the time zone in which you live. When the end of the trading day falls when you are home and awake, you can check the markets on your laptop or other computer. Because New York graduation is so important, you need a laptop at work or a mobile trading platform to monitor daily completion when the graduation takes place in New York at work. Although I would generally advise against telephone trading, we have to make an exception in this case, as this may be the only option to most likely record price action at the end of the day on the daily chart.
Basically, your goal is to analyze the charts, possibly place orders based on market conditions, or optimize orders twice a day. You have to do this part of your trading routine.
What else do you need for part-time trading?
Aside from the right New York close trading platform, you need a trading plan that you create after mastering a trading strategy. It can also be a good idea to have the newsletter easily accessible for the daily trading configurations of LTTTM members when you are at work. Make sure you know when the daily New York closings are in your local time. You can find out by looking at this time zone converter.
An example of a part-time trading routine
Let us analyze a day in the life of "Bill", our hypothetical dealer from the intro. Bill has a full-time job and is a busy man, so he has to work part-time to adjust to his schedule.
- Bill wakes up around 8 a.m. on weekdays from Monday to Friday. He lives in London, Great Britain, so unfortunately for him, that's about 3 a.m. in New York and the US markets are only stirred up in New York around 8 a.m. 9 a.m. So he will be at work when the best movement occurs. However, since we do not do day trading, this is not a problem. Please don't consider this a problem, Bill.
- What Bill must have prepared for before he wakes up on Monday morning is his weekly chart analysis, which you can see from my weekly chart analysis. In essence, you need to do your most important market analysis over the weekend when the market is closed. You will find key levels, analyze trends / market bias and make notes for the coming week.
- When Bill comes home from work during the week, it's usually around 6:00 p.m., which is 1:00 p.m. New York time. He has a couple of hours before the New York closure. He can go to the gym or do whatever. But at 5:00 p.m. New York time or shortly afterwards, Bill has to step up to the charts and analyze the time frames of the daily charts.
- At this point, he is checking what happened on his favorite markets that day. He compares the price movement with the main levels and trends he drew over the weekend and checks whether there have been any obvious price action trading deals on that day. He essentially compares the market movement with his trading plan.
- Bill may also want to read the Learn To Trade The Market members' trading attitudes newsletter to see what trading ideas we've posted for that day and compare this with his own analysis and trading plan. If he sees a similar pattern / trade signal as we discussed in our report, he may see it as an additional confluence that there is a potential trade.
- The next day, while at work, Bill may decide to check the open morning market, which will be around 11:00 for him. There's nothing wrong with checking the market at work, either on your laptop or phone. Just don't make it an all day thing. Keep in mind that you should have two scheduled times a day to check the markets, ideally morning and evening. Make sure you stick to your predefined trading plan.
- This may mean that you have some good examples of “ideal” trade configurations with you as you work so you don't forget what you are looking for. You should include this in your trading plan. I would even say that taking your trading plan to work is a good idea to help you stay responsible and disciplined while away from your normal trading desk / office.
- Remember the price action setups and the different market contexts you want to trade with. If those specific settings aren't in the table, go ahead and don't waste time looking for something that doesn't exist.
You can include sample charts in your trading plan for high quality trading configurations like this:
Example of an ideal pin bar trading pattern:
Ideal example of a trading pattern inside the bar:
Ideal example of a wrong trading pattern:
The "hidden" treasure of part-time trading
Part-time trading not only enables you to trade your day job, but also offers other "hidden" advantages …
I've written extensively about the value of low-frequency trading, which you can read about in the article linked earlier. To repeat the point here again, there is a kind of self-fulfilling remedy for over-trading that goes with part-time trading. Of course, since you look less at the screen, the dangers of over-trading are largely eliminated. Traders who sit all day and watch the markets, especially with live trading, are generally exposed to emotional trading sabotage and addiction.
Part-time trading will help you largely avoid this as long as you stick to your trading schedule.
The real “work” of trading is to master the craft and learn to read the market footprint of how a fisherman reads the changing sea conditions to better find out where to fish.
Most of the time you spend trading should not include trades and hit the buy or sell button. Most of the time should be spent studying and studying, not actually doing trades. You need to understand this early to save a lot of time and money.
You don't have to worry about missing something during your work as you can trade part-time around your day job. This type of trading will also benefit you in other ways, especially if you manage your emotions and don't trade too much. I've been a supporter of a set and forget trading approach for a long time, and part-time trading is a good addition.
Do not immerse yourself in the trading feeling as if you had to put all your eggs in one basket and trade "full time". You really can't be a full-time trader until you prove yourself a successful part-time trader anyway. Do not place the cart in front of the horse. Take your time, relax and learn, learn, learn.
The main component of part-time trading is to focus on the timeframe of the daily chart and learn how to trade at the end of the day. This is the core philosophy that I teach in my course on trading with price promotions. Mastering this approach gives you the flexibility to adjust trading to any schedule, no matter how busy you are.
What do you think about this lesson? Please leave your comments and feedback below!