Many people are interested in taking up part-time trading in the stock market rather than pursuing trading as a full time job or give up their day job for the same. In fact, many professionals work as day traders only for part-time, trading for a few hours a day, and then resuming their usual activities.
If you too are interested in day trading for part-time, and want to maximize your returns, here are some useful tips you can follow:
Open a Demat Account
The very first thing you need to have for doing part-time trading in the stock market as per SEBI is having a demat account with the best stock broker in India. You can look at the top 10 stock brokers in India and can choose the one that matches your requirements and open an account.
Learn the basics of stock market
Stock market functions on the concept of demand and supply. Thus, before getting engaged in any kind of trade you need to learn the basics of the stock market. Keep a track on the financial news, listen to podcasts related to stock market trading, and take up online or offline courses on investing to become an excellent and efficient trader.
Practice with online stimulators
If you are new to the world of trading, start practicing with the help of online stock market simulators. Online stock simulators are a great way of learning stock trading.
Choose the right trading period
Being a part-time trader, it is important for you to choose the right trading period. If you are a momentum trader, the first 1 hour is the right time for you to trade. It is always advisable for you to research the stocks you want to trade in before the market opens.
The next momentum period is between 1:15 pm and 2 pm where even the part-time traders can trade. These two time zones happen to be the most profitable time zone for part-time traders.
FAQ
How to Open a Demat Account for part-time day trading?
To open a Demat Account you need to contact the best stock broker in India. You can choose the brokerage plan that suits your requirements and open an online Demat Account easily.
What are the different trading periods?
The different trading periods suitable for the day traders are as follows:
- The opening range (it is the first 1-1.5 hours)
- The mid-markets (it is from 11 to 12:30 pm)
- The trading period (it is from 1 to 2:30 pm)
- The trading period between 2:30 pm to 3:30 pm)
What is the difference between trading and investing?
Trading and Investing are two different terms. Both the terms are often used interchangeably; however, they are not the same.
Trading involves frequent buying and selling of stocks with the objective of gaining more and faster returns on the amount of capital invested.
Investing, on the other hand, is where people invest their wealth and hold stocks for a long period of time ranging from few years to even decades, to take the advantage of benefits like dividends, long-term returns, etc.
