How To Completely Change our Financial Life from Trading with doing A Day Job ?

I will provide u ideas on how you can participate in the futures markets while maintaining a day job and busy lifestyle.

If you have a day job and find it difficult to trade the markets, there are a few things you can do. Understand the hours that you have available to trade and match your time to the markets available. What markets are good for people who work during the day? How to make the most out of your trading time and still find good trading opportunities?

HERE ARE SOME OF THE ITEMS THAT WILL BE DISCUSSED:

• Matching trading styles and markets to suit you...
• Fit trading into a busy lifestyle...
• What markets should you trade if you have a day job?
• Scanning techniques for busy people...
• Creating consistency by managing risk...
• Money management in trading...
• The Break Even Principle...
• Being in control of your emotions...

Most trading books, Internet articles, and gurus are focused on teaching traders how to trade during an active market session. Even if they use longterm charts to plan a trade, many are still using short-term charts to enter the trade in real time. I assume that the idea of day trading and making tons of money in a few hours sells well and appeals to a wide audience, but the reality is, most of the retail traders I speak with work other jobs for a living and can’t participate during an active trading session. I don’t deny that an experienced day trader can achieve impressive results; I would submit to you that an experienced long-term trader can do the same. 

This post is about trading around a day job, regardless of whether your end goal is to quit that day job. Therefore, the methods I teach in this post are focused on long-term trading due to the number of advantages it offers over day trading. First, despite the constant marketing hype that the currency market is a 24-hour-a-day market, there are really only a handful of hours during each trading day during which the market is worth watching. 

If you’re not trading during the London or New York trading sessions, there isn’t much going on and you best not be trying to day trade. Even if you did try to day trade around your day job, the schedule you’d have to keep is nuts. Depending on your time zone, these trading sessions will happen when you sleep, during your morning commute, or during your workday. 

In my time zone, if I wanted to trade with London and New York I’d have to be awake from midnight to eight o’clock in the morning, and that simply isn’t going to happen. My family would like to see me throughout the day and I like to sleep when the moon is out, not the sun. I didn’t become a trader to work nights, and I suspect you don’t want to, either. 

Short-term trading can be highly stressful as well. Constantly looking at charts for hours and selecting trades in real time can burn a trader out quickly and lead to over trading and possibly more losses.

SPECIALIZE

Specialists are good at what they do because they are highly trained and focused on a single trade. There is a reason that commercial pilots earn type ratings in specific aircraft or doctors will refer you to a podiatrist when you smash your pinky toe. 

Trading is no different.Traders who are laser focused on a particular specialty will likely outperform traders trying to master many trading techniques at the same time. There are two specialties a trader should consider focusing on. First is the currency pair; second is the trading strategy.

BEGIN WITH ONE CURRENCY

Most currency dealers offer over 50 currency pairs to trade, but if you aren’t profitable trading one currency pair, what makes you think that trading 10 or 20 will make you a better trader? When you are struggling to achieve consistency or are new to trading currency, I recommend selecting one base currency pair to trade and becoming a specialist in that currency. 

You should learn its fundamental drivers and spend time observing its personality. Each currency has different habits that you will gain an understanding of by focusing on one currency at a time. For example, the GBP/USD and EUR/USD both tend to test key areas near the London open, only to reverse direction based on supply and demand. 

The EUR/USD and GBP/USD tend to test breakouts that happened during the London session again during the New York session. The USD/JPY tends to be sensitive to the action happening in the U.S. equity markets, while USD/CAD and AUD/USD tend to move on risk appetites; bad news for the United States tends to drive the dollar higher against these pairs.

DEVELOP A WRITTEN TRADING PLAN

Every well-run business has a plan, and trading is no different. Consistent traders use a written trading plan as their playbook for executing trades throughout the trading week. Actually writing down your trading methodology is a great exercise to ensure that you can clearly articulate the strategy. Remember the elevator pitch? Having a written plan will strengthen your commitment to a particular trading methodology, which keeps you focused and specialized. 

I’ve seen trading plans of all types, from note cards to multipage documents, but my personal preference is to simplify a trading methodology down to a single printed page. I’ve found that trading plans greater than a single page are either too vague and document many variables to entering and managing a trade or they are simply too complicated and many traders won’t have the discipline required to follow it correctly.

In my opinion a trading plan should contain each of the following:

• When to trade
• What to trade
• Entry rules
• Risk management rules
• Profit management rules
• Position sizing rules

Whether the trading plan is focused on short-term or long-term trading, the principles of a written trading plan are the same.

WHEN TO TRADE

Defining when to trade sounds obvious, but it actually is quite important to carefully consider when you are going to trade. Many trading systems only work well during a specific window of time; others are more flexible, allowing a trader to place orders around the clock.

Either way you should clearly define when you are expected to trade for a specific trading plan. When to trade can be determined through back-testing a system. If you have tested a strategy, try conducting an analysis of when the majority of profitable trades happened. Why trade a system during a timeframe you know puts your trade at a statistical disadvantage? 

If you know the majority of profitable trades happen in the morning, consider limiting the hours you can take trades, to avoid unnecessary losses. It’s a simple rule to include, but it’s very effective at limiting losses. Finally, establishing a time to trade allows you to build in a daily routine to conduct your trading business. Discipline to do the same thing every day is the mark of a true professional trader, and setting a time to trade will help you build that discipline as part of your trading plan.

WHAT TO TRADE

Successful traders eliminate distractions that could affect their ability to make a good trade. If you’re watching too many currency pairs or trying to trade a currency pair you haven’t tested your trading system on, you might take unnecessary losses. 

Listing what currencies you will trade in your trading plan is an effective tool to keep you focused and avoid distractions from other currency pairs throughout the trading day. Remember, you don’t need to make a gazillion pips a month to earn a healthy return. Your trading plan should keep you focused on only the currencies

RISK MANAGEMENT RULES

Risk management is really the heart of any trading system. Regardless of how good the entry or exit, a system known to be profitable can still return a loss if the trader does not practice good risk management. Risk management rules should be as clear as entry rules. Single bullet-point instructions are clear and easy to comprehend when you are considering a potential trade. Here are some example rules for a system built around bargain hunting.

Do not place more than 2 percent of the account’s capital at risk on a single trade. Reduce risk by looking for 00 levels that may offer a better entry price. Look for trades requiring 60 pips in risk or less. More is okay, but consider reducing position size to 1 percent.

PROFIT MANAGEMENT RULES

Profit management should include guidelines for identifying profit targets, closing a trade when it is making money, and adding to a trade as it earns more profit. You should specify which Fibonacci ratios you are interested in using if that is your profit management tool of choice.

POSITION SIZING RULES

The final section of every trading plan should contain rules for increasing your position size as the equity in your account grows. Managing the growth of your position sizes is associated with risk management and profit management at the same time. For the purposes of writing a trading plan, all we really need are some guidelines for when position size should be evaluated and how much it will be increased. Assume that you have a $1,000 mini account with 400:1 leverage and you are risking 2 percent per trade. 

Your acceptable loss per trade would be $20. As your account grows, the amount of money that is acceptable to lose grows as well. Eventually you will want to increase the standard amount of money you’re willing to lose based on the new account balance My standard method is to evaluate position size standards at the beginning of each month. For example, if I have a $1,000 micro account and I’m willing to risk $20 per trade (2 percent risk), I will trade a position size that risks $20 for the entire month, even if my gains allow me to trade a larger position. 

When the first of the month arrives, I will recalculate my standard position size according to my current account balance and trade the new position size for the duration of the month. Whether you do this weekly, monthly, quarterly, or yearly doesn’t matter; the point is to ensure that your gains are consistent and you don’t take on too much risk too fast for your account balance. 

Just because you made a huge $1,000 profit on your last trade doesn’t mean you’re free to increase your position size for the next trade, unless losing more than you gained on the last trade is okay with you.

Following a written plan is about maintaining discipline, and knowing what currencies you should focus on is a key component. If you can’t find a trade following the system of a currency you specified, there is no trade to take and you should remain patiently sidelined.

ENTRY RULES

The heavy lifting of any trading system is done by rules dictating when to enter and when to exit the market. Stating clear rules is crucial to the success of a written trading plan because they provide confidence in the actions a trader must take to execute a trade on the plan. If your rules to enter a trade ramble on for two pages with many logic decisions such as “If indicator ABC crosses the voodoo moving average only when the magic eight ball says it’s certain, get long,” how do you expect to ever be confident you’re taking the right trade? 

You should be able to read your entry rules to anyone and have them learly understand the steps you are going to take. After all, if another trader doesn’t understand your rules, how do you expect to execute them in real time? I’ve seen enough traders who use ambiguous entry rules miss trade after trade only to wonder why they didn’t take a good trade in hindsight. In my opinion, rules should be bullet points making clear what action you will take. Take the following rules as an example:

LONG ENTRY RULES

Hull moving average turns bullish

• After price completes the first pullback, enter at market on the first bullish candle
• Do not enter when the signal candle is greater than the stop loss
• Do not enter on a signal that follows a successful trade; wait for the next one
• Reverse for short trades

These are some concise rules that are easy to follow and could be applied to virtually any timeframe you want to trade. Keeping rules short and simple helps me follow them accurately without hesitation.