Trading part time is not an easy thing to do, but with some of the tested ways anyone could nail it without hurting his or her present post. There are some who leave their job to trade full time. Though trading full time has benefits, the decision to quit job and trade full time requires a thorough thinking, planning and analysis. They should be mentally prepared and financially capable as well. For a trader and breadwinner like me, work is still my sanctuary. A regular and guaranteed monthly income is crucial especially for settlement of my mortgages, utility bills, and school or tuition fees. Since stock trading has inherent risks, doing it part time is a prudent thing IMHO. Here are few must survival kits to do part time trading for a trader who is on a budget like me:
1. Research Tools
I actually do my research during weekends. In order to do fundamental and technical analysis, reliable sources are essential. There are many research tools, e.g., electronic databases such as Osiris and EIU (The Economist Intelligence Unit); and high-tech stock monitoring and/or charting tools, e.g., live and real time data, level 2 software or platforms, available which are too good but expensive. As a trader who is on a budget, sticking with available yet free online resources will save money that can be used to rather increase my stock trading account balance. Anyway, here are the few sources which anyone could use.
a. Your Online Stock Trading Platform
One example, FirstMetroSec has research tab where you can get consensus report; chart tab where you can find technical event lookup, bar/line/candlestick chart with daily/weekly/monthly data including moving averages, MACD oscillator or RSI; and many more.
b. PSE Edge Website
You can check at PSE Edge Website [http://edge.pse.com.ph] the company’s annual/quarterly financial reports to know the current and previous Revenue, Net Profit/Loss, and EPS. For company disclosures, it is limited to only recent information. You can call PSE [(632) 819-4100] or email [research@pse.com.ph] for request of historical data or visit their library.
c. PSE Library
It is located at the 27/F, PSE Plaza, Ayala Triangle, Ayala Avenue, Makati City; open Monday to Friday, 9am to 4pm. Just bring a valid ID during your visit. However, there is a charge per copy of requested disclosures in pdf format.
d. PSE Website
Just like your online stock trading platform, PSE Website [http://www.pse.com.ph] has also candlestick/OHLC/line chart with indicators (defaults) configuration, e.g., volume, EMA, RSI, momentum, etc. for each security. What I like about their chart is that I can adjust/zoom it to 3 months or lesser for a closer look of the bars for any special bar combinations or small patterns.
e. Listed Company’s Own Website
Disclosures and annual reports of companies listed in PSE are available to the public through SEC and own website.
f. PSEGet Application
Since PSE Website can only give you securities’ historical prices for the last 30 days, PSEGet application which you can download for free can give you prices preceding the last 30 days.
2. Online Stock Trading App
Trading using mobile phone is a better alternative in case internet in your office is not available or your office PC’s browser is restricted, can access only to IT approved URL or websites; or you are always out of the office or doing off-site functions or meetings. Check app store if your present online stock trading platform has app than can be installed in your iPhone or Android phones. Once installed, you can now check your buy or sell trading position by peeking anytime during trading hours. Master the art of multi-tasking first and make sure your superior will not notice you glancing too much on your mobile phone. So, do it in moderation.
3. Good-Til-Cancelled (GTC) or Good-Til-Week (GTW) orders
A GTC order is a buy or sell order which remains in effect until it is either filled or cancelled. While, GTW order is similar to a GTC order except that it only remains posted for seven calendar days. For example, if you post a GTW order on a Tuesday, it will remain posted until the following week’s Monday. In case you are working on a graveyard shift and cannot place an order during trading hours which is daytime, an online stock trading platform might have a GTC or GTW orders which you can post even outside trading hours, e.g., a night before trading day. So after you had your research, you can have a plan to buy or sell a stock with a price support and resistance range you have perceived.
4. Business News and Social Media
Well, thanks to internet and technology because there is now ease to access various information. Trading part time is indeed plausible. Also, you can know what is happening in the environment, economy, market, industry or sector your stock belongs, and a business or corporation itself just by touching the screen of your phone, tablet, or any other mobile devices. Before going or starting to work, I usually read local and international business news related to stocks and stock market. Moreover, I follow and regularly read tweets or posts of popular traders, online brokers, and bloggers which might give me up-to-date company or stock events. Through these for instance, I could avoid losses brought about by “buy on the rumor, sell on the news” approach.
Caveat. :)
#PartTimeStockTrading #TradingonaShoestring
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