Every person has a dream to trade in the market while working, but it is not so easy to trade while having a job. Because a person can never focus on two places simultaneously, he should either focus on his job at once or on his trading. But today’s post will mention how a person can do both works simultaneously. Under this, a person cannot do job and trading together but can do trading after job and job after trading.
You must have often heard that people who do jobs pay more attention to investing and not trading, but today I will tell you how you can do trading along with your job. But trading will not be intraday, it will be swing trading, time always matters in intraday and swing trading.
Table of Contents
Perform all your analysis in the evening
It would help if you did not look at charts while working. Because this will divert your attention from both places, neither will you be able to trade properly nor will you be able to do your work properly. That is why our old elders have been saying that the person who keeps two boats inside always sinks. The same thing applies to our trading. If we trade while working, we may lose our jobs and lose our capital in trading.
Now the question arises how do we do trading? The simple answer is that whatever analysis you do and trading-related work you do, you will do it after coming home so that your focus will remain only on trading and on your analysis.
After coming home, you will not be troubled by the headache of the office, due to which all your focus will remain on the market, and you can do the analysis comfortably. If you do the analysis inside the office, then neither your analysis nor the office work will be correct.
Work with a higher time frame while trading
You should always trade with a bigger time frame. If you trade with a smaller time frame, you may have to face some losses. Because there are more fluctuations in the market within small time frames, many trades are not able to bear the fluctuations.
If you analyze larger time frames, you will see a major chart pattern forming in it, or possibly, you will see some support or trendline bringing the market into a trend in larger time frames. For example, if you draw a trend line in 5 minutes, then you will get its usefulness in a time frame of four hours and if you draw a trend line of 4 hours and implement it in a smaller time frame, then you will get more usefulness in it than in a smaller time frame.
Many people use combinations of time frames which make it easier for them to make trades and any trading-related decision without any fear.
Use big stop-loss
If you want to trade along with your job then you should always use a bigger stoploss in the bigger time frame. This makes it easier for your trade to survive in the market for a long time. Suppose you have taken a trade in a small time frame, then your stop loss will also be small, and if you have taken a trade in a big time frame, then your stop loss will also be big. This can never happen, you have taken your trades in a larger time frame and have set your stop loss as per a smaller time frame, which will increase the probability of your stop loss being hit.
You have to pay attention to many things in the market while placing stop loss in big-time frame. What is your risk tolerance capacity, and if the market becomes volatile, will you be able to survive in the volatile market? Along with this, despite all this, you should also have a perfect strategy. Which will get you out of the market safely if you go against all this.
A working person should use a larger time frame because there are frequent fluctuations in the market due to the chances of hitting his stop loss becoming higher. But if the trader has set a big stop loss along with the study in a big time frame, then the chances of hitting that stop loss will be less while the chances of hitting the target will be high. I also want to say that setting a big stop loss in the market also leads to a big loss. But we have put stop loss with our proper strategy. So the market can also give us good profits. If we close our eyes and set the stop loss without doing any research, the market will easily hit that stop loss.
Avoid scalping in trading while having a job
In scalping, very short-term trades are made by traders. Due to this, the trader may sometimes have to suffer huge profits as well as huge losses. In this type of trading, the expert trader looks for small price momentum in large quantities. If unfortunately, the trade goes against the trader. then he will have to face huge losses.
You should use larger time frames to avoid scalping-type trading. Even if any of your positions go against you, you can still hold your position for days, weeks, and months. Along with these holding positions you should also place your stop loss order. Which will reduce your potential losses, and act as a shield for your capital.
While scalping, a trade also leads to over-trading. The trader sometimes makes more losses to cover his losses. Due to this, traders don’t know when one trade has become 10 trades, which directly leads to over-trading.
Trade in 3 to 4 pairs
Traders should do trading in selected pairs. If the trader accords the selected prices maybe that will not be a good deal for the trader. Sometimes if we do trade outside form selected trade we can’t find out the proper volatility.
This is what it means to trade in a script. We have captured his every momentum, at what time it’s most volatile, at what time it moves, and at what time it runs most. All these studies are done only after deep analysis of one and only one script.
You don’t need to trade only in Forex. You can also trade in cryptocurrencies, stocks, and commodities. You will have to make your primary script, on which you can do very in-depth research. It should not happen that you create your primary script one after the other. If possible, work on just one script for at least 3 to 4 months. After doing complete research on it, you can move on to another script.
Sometimes many people make many scripts as primary so that’s why they incur huge losses in the market, because traders have not got any information about scripts and how the scripts are moved while market timing.
Take only 1% risk
While trading in the market, you have to risk only one percent of your capital. Please note that you have a capital of around ₹ 500000 and you have to give only one percent of it to the market. Because this one percent is a huge part of your capital.
If you take the risk of one percent on your capital every day, you can stay in the market for a very long time, if we talk about an average time, then you will stay in the market for about 3 to 4 months. During this time, you will understand the movement of the market, how the market goes up and down, and how the market remains in a range. This will happen only when you manage your risk reward and take a 1% risk, otherwise your capital will soon become zero.
If you invest only one percent of your capital in the market to fix losses in trades done in the market, then the chances of you incurring a big loss are greatly reduced. Due to this the capital you have helps you in learning trading for a very long time. In comparison, if you increase your total capital every day by one percent, then after some time it will become so big that you will not be able to handle it, so you should know the meaning of one percent very well.
If you have learned about one percent then you can do a lot in your life. Even if we fall down in the market by one percent every day, we will still last for a year. In comparison, if we rise one percent every day, and do hard work continuously for a year. So we will reach so high in the market that we will have a huge amount of money and experience.
Work with 1:2 RR ratio
If we talk about it in a common language, we risk some money to gain something in exchange for losing something.
In trading, we put something at stake to get something. For example, putting one dollar at stake while trading would need at least two dollars in return. It’s called one each of two risk-reward ratios. This risk-reward ratio is very famous. Even if the trader loses five trades out of ten, he will remain in profit.
Sometimes the trader gets greedy and starts following the high risk-reward ratio in the market. In which the market gives profit to the trader in the ratio of one each two. But the trader gets greedy and goes for bigger profits. Unfortunately, the market doesn’t give that type of profit regularly, this type of profit the market gives to the trader market sometimes. Due to this the probability of loss for the trader increases. So, for this reason, only the ratio of one to two is considered the golden level in the market.
Figure out the small time window that can help you monitor the chart
Although selecting the time frame depends on your strategy, sometimes while doing his analysis, the trader analyzes the chart in each time frame so that the trader doesn’t have any hesitation in making any decision.
While trading in the market, the selection of a time frame should be set according to your trading strategy and goal. It is not that you have made a strategy for a short period and you are looking at the time frame on a larger scale, hence whenever you select the time frame, do it according to your goal and strategy.
For Intraday Trading =-
According to our analysis, if the trade is to be traded intraday then it should follow the time frame of at least five minutes to one hour. While doing intraday trading in Forex trading, we have to square off our position within 24 hours.
If you are doing day trade in stocks, you will have to liquidate your position in just six to seven hours. Therefore, small time frames are considered the best time frames for day trading.
For Swing trading =- If you do swing trading in the market then the best time frame for you can be from 1 hour to 4 hours. You should always look at the trend in a larger time frame and enter the trade as per the 1-hour time frame.