Are you wondering if you should transition into full or part-time day trading? I’ll share my personal experience transitioning into full-time day trading and what the advantages are.
My Story With Day Trading
Before I went into day trading full-time, I thought about it a lot. I made the decision about three years ago, after I got out of college. At that time I didn’t have quite the amount of experience that I would recommend if you’re planning on trading full time. When you get ready to go into the industry, I recommend having at least 3-4 years of practice to get to know every single aspect of this industry so that you can be profitable. After 1-2 years you really start to gain confidence in what you are doing and you just want to ditch your old job and go full-time with day trading. My personal experience was making sure I had many hours of screen time every day for those first two years, basically 8 hours every day.
After that I started to get the hang of it. I started finding and practicing different patterns, I figured out how to utilize the best winning percentages, and I started to take advantage of people’s psychology. It took me about another half a year to really get the hang of all of those techniques. At that point I cut down on my screen time, and now I spend about 1-2 hours right after the market opens. If there’s a low flow I get up a little earlier than usual to get started. But even if the first green day has low flow, I’m not really interested in borrowing shares so I don’t get up that early. For regular flow you can pretty much borrow shares when you get up.
I usually get up around 9:20 and spend about 5 minutes looking at the market. I observe the top 20% gainers to see if any of them are over 20%. If they are, I then have to consider if they have enough volume and fit my other criteria. It takes me about 2 minutes to go over all my tickers on the top watchlist, then I play my trade in 3-5 minutes. Once the market opens I either take a trade, or I don’t. If I don’t take a trade, I generally stick around for another 45 minutes to see if anything pops up. After those 45 minutes, if there’s no trade, I’ll just turn off the computer and enjoy the rest of my day.
Trading Opens Up Your Schedule
That’s one advantage getting into full-time day-trading and being successful: I don’t really spend that much time day-trading anymore. I can use that time to do something else. But if you want to go full-time, instead of just jumping in, I would say that you need to enter the industry and start practicing for at least two years, then consider if you want to go full-time or not. Look at your record and see if you are consistently profitable and if you have fully-developed strategies. All of this and more needs to be considered before going into full-time day trading. Once you become full-time, you have some success, and you don’t have to spend that much time on trading, you can still keep your job, giving you double income. Trading can be an aggressive income and your other job can be a passive income.
Trading Requires Less Communication
Another thing I like about day trading compared to other businesses and industries is the communication. With day trading, you are only looking at your computer. You don’t really need to communicate with people or talk about the deals. For example, let’s say there is a house that’s $500,000 and you don’t know how much to cut it down by negotiating, you don’t necessarily have that particular set of negotiating skills. How are you going to negotiate a better price for the house? I realized early on that I wasn’t really good at communicating with people, so looking at the computer and reading the stocks is much better for me. You don’t need to spend 9-5 doing the same thing over and over again every single day, trying to communicate and make deals with people. In day trading the ticker is different and the flow is different every day. There are new little things you can learn every single day. And you don’t need to spend all day doing it.