How to do Stock Market Trading While Working
Stock markets are of interest for many young people. Everyone wanted to learn stock market trading and start investing and aim for profits. Most of the people will try to do the stock market as a secondary income while doing a full-time job. But the timing of a full-time job is similar to the timings of the Stock Market.
In India for example, the timings of the stock market are 9:00 AM to 3:30 PM. And also for most of the companies in India, the work timings will be like 9:00 AM to 6:00 PM. Considering the overlap of the timings it might look difficult to do and invest in stock markets.
But Let me tell you that you no need to spend a full day in the stock market during the market timings. You can while doing your full-time job can also continue investing and following the stock market and make profits. We will discuss the important points below which will help you start investing in stock markets at the same time doing your full-time job.
Most of the time if you a long time investors, you no need to actually look at the market every few minutes or hours. You can be prepared using different tools and methods and become a successful long time investor.
When I started to learn about the stock markets initially, I was even doing a full-time job. Though initially, I found it difficult to follow markets considering I will be busy doing some kind of work during the day. But over the course of time, I found different techniques and tools which have helped me to follow markets successfully and invest in the stock markets.
One of the most important things to consider is that there are different kinds of traders. For example an Intraday trader and long term investors. For an intraday trader, he needs to observe the market every now and then during the day which will be difficult for a full time working professionals. But for a long term investor, it is not required to watch the market every now and then. Hence we will be discussing specifically keeping in mind that these are for long term investors.
We may also call as Swing traders, which means that we will be interested to wait for some time to make profits. We are not specifically targeting to buy and sell the stocks on the same day, but we will wait for few trading sessions, which may depend like 1week or a month or more sometimes ultimately looking to profit in the trade.
A swing trader is the best option for all the beginners because it is less risky as compared to day trader(Intraday trader). For an intraday trader, the position has to be closed with in the same day. That is he has to buy and sell the instrument the same day, and hence difficult to predict the movement. But it is easy to predict the stock movement over a short period of time like a month of a week.
Research and Analyze
For an intraday trader, they rely mostly on the technical signals of the instrument and also on the recent news on the stock. This requires a lot of research and understanding a lot of technical signals. These signals need to be constantly observed during the day time to see any movement and breaking of signals. But for a swing trader, less amount of time is required. A swing trader needs to look at simply the fundamentals of the company and the future prospects of the company and any expected good or bad news in the futures about the company.
Hence this research can be done after the office hours and no need to be done only during market hours. You can spend daily some time in the night or in the morning to understand the company and take decision based on that research.
BUY and SELL Prices
When you have done your research and selected a particular stock for investing. It is important that you decide the buy and sell price of that particular company. These prices have to be pre-decided and must be validated with historic data about the price movements of the stock. Your aim is to BUY low and eventually SELL high. This decision you can take after office hours.
Range of prices
When you have decided to buy a particular stock or sell a particular stock based on your research. you have decided that you will execute the trade the next trading day. But don’t be specific about the price of the stock. Many times, you won’t be in a position to get the price you wanted and hence your trade won’t be executed. You have to decide the rage of prices where you will buy and range of price you will sell the stock. This will ensure that your trade will be executed. As you won’t be observing the market during the day time, the price may move in any direction and might not meet your exact price requirement. hence choosing a range of prices will ensure that your order will be executed.
Consistancy of plan
Once you have done your research and executed your trade, you have to stick to the plan. You have to stick to the stop loss, your buy price and your sell price. Don’t get carried away by the wrong signals you might get during the day time and execute a wrong trade. You have done your research and decided the plan and hence stick to the plan.
One of the most important thing for a Trader with a full-time job is to use the screeners and other tools which will inform you about any movement in the market which might be per your plan or against your plan. For example, you can use Zerodha’s sentinel platform which has many signals and you can use this to create notifications with different conditions. For example, a stock moving more than 2% or a stock falling below your specified price and other. You can use such a tool to notify you about your conditions while you are working and eliminate the need for observing the market for such signals each time.