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Can you be a day trader part time?

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Can you be a day trader part time?

You can easily day trade on a part-time basis with stocks, futures, or forex. Part-time trading can work well if you trade regularly. If you want to casually dabble you’re unlikely to gain consistency, meaning you might make some money but then give it right back.

How many hours a day do day traders trade?

Day traders need liquidity and volatility, and the stock market offers those most frequently in the hours after it opens, from 9:30 a.m. to about noon ET, and then in the last hour of trading before the close at 4 p.m. ET.

How many trades does the average day trader make?

You average 5 trades per day, so if you have 20 trading days in a month, you make 100 trades per month.

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Should you day trade part time or full time?

Many professionals recommend part-time, and like them, you can trade every day during the best times of the day and then do something else with your free time. On the other hand, being a casual day trader means you day trade whenever you have an urge, or when time permits.

What does a day trader do?

Day traders employ a variety of methods to make trading decisions. Some traders employ computer trading models that use technical analysis to calculate favorable probabilities, while some trade on their instinct. A day trader is primarily concerned with price action characteristics of a stock.

How many hours a day do you need to day trade?

Day traders only need to trade stocks or futures markets for about one to three hours per day. While some day traders do trade all day, the greatest possible returns in the shortest amount of time are typically concentrated around the official open and close of stock trading.

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What does it mean to be an independent part-time trader?

Most full-time traders who rely on trading as their only income end up trading part-time because they find that only a few specific hours of the day produce the best results for their strategies. Because of this, being an independent part-time trader or an independent full-time trader often mean the same thing.