Full-time vs. Part-time Trading

One of the first trading decisions a new trader will make is whether to trade on a part-time or full-time basis. My advice to new or prospective trader is to start slowly. In other words, start trading on a part-time basis. The new trader can start out in the business gradually, which is a distinct advantage. Chances are that a new trader would not quit his or her day job, and thus there will be less pressure to make money immediately. The trader would have a continuous source of income from his or her regular job. So trading and only breaking even at the beginning would not be a financial disaster.


Also, starting on a part-time basis limits overall risk exposure. The trader can still keep his or her job. In the event that this "career change" does not work out, the trader still has the old job. Trading on a part-time basis will also test the trader's resolve. The trader will learn quickly whether he or she has the mental constitution for this line of work. In the event that the financial , mental, and time commitments to trading are no longer present, the trader can go back to the old job.

Furthermore, trading on a part-time basis requires less capital. There is less pressure to make money immediately. The trader can start on a part-time basis with slow stocks, which are often less expensive. Trading the slow stocks in smaller blocks requires less initial capital, although the profit potential will be smaller as well. But the pressure to make money immediately is also less, as the part-time trader has other full-time employment.

- Sarkovich


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