Part Time Trading ENG

Part Time Trading ENG


Hi guys Andrea Unger here. Trading part-time. I’m asked sometimes if this is possible and
I normally state how hard it is to become a trader and how difficult trading is, how
dangerous it is. So you might be surprised now listening to
me saying that yes I believe that part-time trading is possible! But what do I intend with part-time trading? For sure I don’t mean coming back after a
full day of work sitting in front of the computer and start scalping the Forex a couple of hours
in the evening. I mean, it might be possible for somebody,
it might be a source of income but to do so you need probably a specific talent with not
everybody has. So don’t think about this solution, also because
sometimes, in the evening of Central European Time, Forex does not move the right way to
allow scalping. Somebody could now claim I’m an idiot, I don’t
know forex well, it’s my opinion of course, but that said it’s also very hard to do such
a thing in addition to the necessity of a specific talent because after a full day of
work you are probably tired, physically, mentally or both and to do something that needs a high
level of concentration is not always the easiest thing to do. Considering also that this would probably
waste your personal life because you would have less time to dedicate to your family
to your friends to whatever you should dedicate to just to have a proper mix in what you do. So you know I don’t consider scalping the
right way to trade, just because I said it requires something inside that not everybody
has and which is very difficult to teach and to learn. So what kind of activity could be used and
put in place to trade part-time? Basically I believe that some swing trading
or short-term trend-following strategies could be put in place if these are based on daily
bars or that all studies are based on daily bars and so that in the morning when you get
up you have already the previous session finished and closed and you have all the information
to place the orders. Orders that should be placed with touch stop-loss,
eventually also take profit, so that you put everything on the server or the broker or
directly on the market if possible, and you forget about it. You close your platform, shut off everything
end you go to work or wherever you want to go to. Obviously, these kinds of strategies face
drawdown periods, as every kind of strategy of course, being strategies that would not
trade very often most probably, you must consider that you might encounter long or prolonged
drawdown periods. These prolonged drawdown periods might heavily
affect you psychologically, so it’s fine to do so, but you must be aware of this you don’t
have to expect something that produces money every single week of your life, and you must
have an idea of how long the drawdown can be before starting and how to react and always
put in place some number where you decide to stop your trading activity. It might be the level of drawdown, it might
be the number of losses whatever! That depends on you because it depends a lot
on your psychology but there must be a barreer beyond which you don’t want to go and you
want to stop your trading in that specific strategy. These strategies ,to have a chance of surviving
and to be so that we can really read the performance of the strategy must be pretty much simple,
simple things. If you build a very complicated strategy with
hundreds of parameters and constraints that you will have some beautiful thing that worked
perfectly in the past and most probably as soon as you put it live you lose your money,
just because of the overfitting you went through. While if you have simple strategies.. What are simple strategies? Strategies when you take a trending market
and you buy the breakout of the high or you sell the breakout of a low of last daily bar,
simple!!! And then you can put on top of it some filters
to limit the activity but simple filters again. You might be willing to enter only if you
come after low volatility period you can code it, or for example, after a congestion or
again some slow activity you can measure it with (I mentioned it in one of the previous
videos) an ADX. You just say “I enter only if the ADX oscillator
is below 40!” for example. Very well, then you have not a high acceleration
in prices and you expect that the move that takes place will be a good one once you enter. Always place a stop loss obviously together
with the initial order. So these are simple strategies. Simple strategies face bad period! It’s normal because more basic your code is
the more robust it might be because it follows concepts that have been working for years,
but obviously they’ve been working for years intended as years of positive result overall,
but not for every single week or month as I said, so you have to be aware that you will
have losing periods and being aware of this you might be ready to face this and to do
what you think to do. So part-time trading is fine, it can be done,
but you have to treat it the right way considering that it might be heavy psychologically. Obviously, always trade what you can afford
to lose don’t try to become the next Rockefeller with a small account and risk too much. Always try to put your trading account funded
with the money that you can afford to lose because trading is dangerous, is dangerous! That said I don’t recommend to trade full-time. I don’t say that full-time trading is less
challenging from a psychological point of view. It is challenging as well maybe you face it
with a different attitude, maybe your expectations for full-time trading are different than from
part-time trading. So I am just mentioning that part-time trading
is fine, but it might be challenging because you might have the results that you did not
expect. Negative of course in this case, so that you
get disappointed and you lose confidence in it. So you have to be prepared, to build a plan
and to stick to the plan as disciplined as possible. Full-time trading is also very challenging
and it might be even more if you do it in desperate conditions, for example, you try
to invent a full-time trader job because you lost your job, this is the worst thing you
can do. I mentioned that in another video and you
are really to be aware of this and consider trading is a dangerous and difficult job to
learn and you cannot learn it into online lessons that you find in some internet website
in a couple of minutes. It takes time, it requires commitment and
discipline and a real professional attitude. That’s it guys I hope it helped I hope it
was useful, we stay in touch! Ciao from Andrea Unger Enjoyed it? Click the link below and you will be noticed
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