Day Trading: Can You Trade Part-time

By Author: David Adams
Total Articles: 41
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Learning to day trade can take varying lengths of time to master, depending upon the skill and dedication of the individual trying to learn to trade. That being said, I am often asked if it is possible to successfully day trade on a part-time basis. Of course, in the learning phase I strongly recommend not quitting your day job because you may find that you do not enjoy day trading or you may not have the attitude or mindset to day trade.

On the other hand, there are those individuals who want to day trade permanently on a part-time basis, and this is quite a different manner. I think an extremely skilled individual could be quite successful trading on a part-time basis. While the ES e-mini trades 23+ hours per day, the prime trading times are when the exchange is open and actively trading. If you happen to have a job that requires you to work 8 to 5, you will miss out what is arguably the best trading. While there is some activity after hours, it can often be slow with very little volume to speak of.

Another trading possibility is the pre-session hours from 6 AM Central standard Time until the market opens. I ...
... often trade this time period and find profitable trades. So for a part-time trader, the pre-session hours offer some real possibilities. Of course, trading the pre-session hours requires waking up very early and some people more amenable to this requirement than others.

But the real problem, I think, with part time trading is not getting enough screen time. To become a good trader, especially in the scalping style, a trader needs to be thoroughly familiar with the contract he or she is trading. Familiarity begets skill, so it is important to get plenty of time demo trading or actually trading small contract numbers to reach a certain point where your skill set is above competent. I know of no other way to improve a trader's results than to spend time trading which ever contract the trader has decided upon. In a part-time trading situation, I fear it would take a very long time to get to a point where the trader has the confidence and skills to be fully effective. That's not to say it can't be done, only to point out that it would take a tremendous amount of dedication an extra effort to be successful trading part-time.

But there are alternatives, I know several traders who work a third shift job just so they can trade the morning ES e-mini session. I consider these guys full-time traders, though I wonder how they do it because they surely must suffer from sleep deprivation. On the other hand, this would be a great way to learn to trade if you are considering a transition from a full-time job to full-time trading.

I feel like the point I am trying to make is a bit ambiguous. An extremely talented individual could trade part-time very successfully if he or she had an extraordinary amount of dedication and above average skills as a trader. On the other hand, someone who does not want to put a full effort into learning to trade will probably be disappointed if he or she tries to trade with a halfhearted effort and part-time. Some of the best traders in the world trade the ES e-mini contract and the exchange is certainly no place for anything but your best. I guess my best answer to the part-time trading question is this: part-time trading is great while you are trying to learn to trade, but may not be the best solution on a permanent basis. The reason I believe this is the skill set needed to trade; traders need constant honing of the day trading skill set to stay current. Trading is a bit like exercise, if you exercise every day you stay in reasonably good shape, but when you take a couple of weeks off your return to exercise can be difficult and you wonder where your stamina went.

In summary, I would estimate a part-time day traders chance at success to be lower than an individual who is going at trading on a full-time basis. But there are extraordinary individuals out there who could easily muster the skill and brainpower to trade part-time. In essence, the chance of success for a part-time trader lies solely in the dedication and skill of its practitioner.

I am a long time retail and institutional trader who now only trades part time, usually in the morning. I enjoy writing informational articles about my style of trading so others may benefit.



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