If you are looking for a career in the stock market but realised that the 9 to 5 regular job is an obstacle for you. Then, here is the solution for you. Nowadays, many salaried individuals are active in day trading without giving up their regular job. The stock market has the potential to fulfill your wish of creating wealth. You can be an intraday trader to make short-term profits or set the base for long-term wealth creation with a diversified investment portfolio. Online stock trading allows you to earn conveniently using your Demat and trading account in India. For long-term gains, salaried persons can consider IPO investments or hold stocks of fundamentally strong companies. Otherwise, if you have short-term goals, you can try hands-on intraday trading.
You need a Demat account and trading account to make stock market investments. A trading account allows you to access a trading platform to place trades and the answer to what is demat account is simply an online repository to hold your securities safely.
Is day trading a viable option for salaried individuals?
The straightforward answer is yes. Even if you are a 9 to 5 employee, it is possible with little effort. You can be a successful trader with trading strategies and grab the available stock market opportunities conveniently for part-time income. Salaried persons may not be able to devote much time to the stock investments on a daily basis. Thus, they can use their ability to make logical judgments in a limited time. Gain vast knowledge of the stock market and utilize the ability to find trading opportunities. Ensure that you can balance the stress of your job and day trading.
Here are the tips that will help you to be a part-time trader.
Utilise the best time to trade
In the stock market, there are certain times with the opportunities to earn significant returns. Salaried individuals doing a regular job can utilise the best times, around the opening timing and closing time of the stock market, of the trading session to find the best trading opportunities.
Set your goals
One can have short-term financial goals, medium-term, or/and long-term goals. Determine whether you want to be a part-time trader or a long term investor. A salaried individual can invest in their financial goals every month and accumulate funds in the long run. Your set goals will push you to allocate the necessary amount of money to the right financial security or asset.
Create trading plans
Trading India in the stock market requires trading plans, and you need to adhere to the plan to minimize the losses. You cannot avoid the losses completely but minimize them with a trading plan. It will help you set the trade with an amount of money that you can afford to lose. Also, set aside an amount of money that you need as a financial backup in case of loss. Make sure you are not borrowing money. Margin trading funding should be utilised for the very confident trade.
It is a human tendency to worry about losses, get scared of volatility, etc. Traders need to overcome these emotions; therefore, they should learn to resist their emotions. Don’t let emotions impact your investment or trading decisions. Markets are volatile by default and, thus, risky. During such volatility, the ideal strategy is to walk away from trading for shorts to avoid huge losses. Traders need to fight against the fear factor and battle greed to be successful.
If you are really passionate about the stock market, you can choose stock trading as a career. Developing trading skills to handle the volatile markets, learning to analyse the market, and keeping yourself updated with the market to make better moves.