Table of contents:
Read the transcription of the video on the topic “Trading as a sideline?” here.
Is it possible to do trading as a sideline job? Is it possible to learn and carry out trading as a sideline job in addition to a full-time job? And can one earn something on the side as well?
That is what this video is about.
A warm hello and welcome to Kagels-Trading.de. My name is Philipp, and today I would like to discuss with you the topic of “trading as a sideline”. Is that possible? What is the time required for this? Is it possible to earn money with it? What should one consider? These and other questions are discussed in this video.
This video is divided into different sections. First of all, I would like to talk to you about how you can integrate trading into your daily work routine, which depends on which type of trader you belong to and which trading style you practice. You should first clarify this for yourself.
Now we will talk about what you want to achieve and how much time it will take to achieve it and ultimately benefit from it.
In the third part, I talk to you about costs and risks, and in the fourth and last part, I talk about the strategy you definitely need in order to achieve anything at all. There is also a special reward waiting for you here. So it is worthwhile to stick with this.
What type of trader are you and what trading style do you want to practice?
Let’s get to the first part: the time required and your trader type.
We first need to talk about the time you have available to trade and especially to learn how to trade. It should be clear to you first of all, if you consider trading as a kind of sideline or hobby, that in this case you will invest a little less time than someone who trades full-time. Therefore, you should also be aware that in the second case the learning process will take longer to lay the necessary foundations. It should also be remembered that many people have very strenuous jobs and therefore cannot devote enough time to this subject and also do not have enough energy to spend hours on this subject after work. So my advice is: don’t put yourself under pressure and take a little more time, because this is a long-term project and it simply takes a correspondingly long time to get used to it.
If you are clear about where you can build in trading and when you have time to learn and develop, it is about when you have time to trade in your everyday life, i.e. when you have time to sit in front of your smart phone or PC to open or process positions.
And this is where we now have to differentiate: Let’s assume, for example, that you work in sales and are standing on the sales floor all day, with a mobile phone ban in most stores, which means that you only have the opportunity to look at your smart phone once or twice a day and to position one in the market. Thus one has only a very small time window, which offers the possibility of throwing a view of its Smart phone or PC.
So if you have so little time, you should increase your time frame accordingly. The less time you have to look at your PC or Smart-Phone, the larger the analysis time frame should be, i.e. the time frame corresponding to each candlestick on your chart.
Swing trading or day trading?
If you have such little time, you should choose a time frame of 4 hours or a day or even bigger, but you shouldn’t overdo it either. With this you are positioned in swing trading. It is therefore trading where you open positions in a relatively long time frame and hold them for several days. Therefore, you should focus on time frames between 4-hour and daily charts. It is therefore a matter of the length of time you choose for the respective candlesticks. This makes you a so-called swing trader, i.e. a trader who holds his position for several days. It takes much longer for a position to develop and as a result you have much more time to process the whole thing and react to certain price fluctuations.
The disadvantage of swing trading is that positions are held overnight, which of course carries a certain risk, because a political decision can be made overnight while you sleep, which affects your position accordingly. Please keep money management in mind and also the correct determination of the stop-loss and profit-taking.
If you have more time during the day to look at your PC or smart phone, you are in the day trading area. This means that you can open, process and analyze positions more often during the day. Day trading means that positions opened during the day are closed before the close of trading. No positions are held overnight. The advantage of this method is that you can open and close positions relatively frequently, avoiding the risk of holding positions overnight, as is the case with swing trading. The disadvantage of day trading is that you should be more flexible on your mobile phone or PC and that you have to deal with less volume. Here you follow smaller price movements with smaller positions, and you should also practice tighter money management.
As a time frame for day trading I recommend the 15-minute chart as well as the hourly chart and maybe even the 4-hour chart.
No scalping for beginners
If you have the whole day to sit at your PC or mobile phone, you can capture every small price movement, as is the case with scalping. You take, so to speak, the smallest price movements with you and thus piece together the big picture. But be careful! I consider this procedure to be dangerous for beginners, because it requires absolutely strict discipline and also very strict money management. For beginners and also for advanced players I would recommend scalping less, but I advise to focus more on daytrading and swing trading.
For Daytrading and Swing-Trading you can find our signals via the link below this video. You can test both signals for only 1 Euro: the day trading signals for 7 days and the swing trading signals for 14 days. By checking these signals, you can see for yourself.
Now you have to consider how much time you have available. I would like to summarize the most important points once again: The less time you have, the larger the trading time frame should be, i.e. the less time you have, the more suitable swing trading is, and the more time, the more you move towards day trading or scalping.
What do you actually want to achieve with trading and how large should your trading account be?
If you have thought about the type of trading that is right for you, you should also think about what you want to do with the trading account you are planning to open. Do you want to earn a regular income, or is it enough for you to make a profit now and then? Or is it okay for you to take some losses, considering them as learning experiences and using your trading account mainly for learning?
In this context you should also consider the size of your trading account. Depending on what you want to trade and how much profit you expect to make, you will need more funds in your account. If you want to earn 400 or 500 Euros every month in an average part-time job, your trading account should be of a corresponding size so that you only need to earn a small percentage.
For a regular income of 400 to 500 euros, your account should in any case have a 4-digit share capital, which should initially even be 5-digit. However, if you only want to trade on the side, I would recommend an initial trading account of 1,000 to 3,000 euros. This will allow you to make decent small profits, which will also ensure regular pleasure. This is an account size where you can trade with micro-lots, i.e. a nice profit results in about 10, 20 or 30 Euros or of course corresponding losses, which you should also know. But in any case, this is an account size that is fun, because it is simply fun to win something extra with this account size.
However, if you consider the trading account merely as a learning account, mainly to educate yourself, you should consider the new ESMA regulations, which have led to the fact that you have to have a higher security (i.e. margin) to trade. So do not open an account with 50 or 100 euros, because then you will not even be able to trade a micro lot. Instead, calculate with a minimum deposit of 200 or better 500 Euros to be able to trade at least to some extent. Also, you should not stop each of your positions immediately. With this learning account, you are only pursuing the goal of developing yourself as a sideline and to increase your account at a later date in order to earn something with it.
Which markets would you like to trade?
An important aspect that also needs to be discussed is which products you want to trade. This is one of the most important areas. What are you interested in? So the central question is: For which product can you muster enough interest to also fundamentally deal with the product. Are you interested in Forex and the currency pairs that almost all beginners would choose. Or are you interested in stocks, crypto-currencies or any other area? You should inform yourself comprehensively about your preferred area and choose the appropriate broker model and broker account. You must then prepare yourself accordingly, where you get your information from and adjust your daily routine to the respective product.
What, for example, could this preparation look like? For example, there are different forex and currency pairs. There are currency pairs in the euro zone which are mainly tradable from 9am to 3pm because they have the largest volume during this period. Then there are the currency pairs with the US dollar, which are mostly tradable from 3 p.m. to 10 p.m., because this is the time when the most volume is expected. Then there are the Asian currency pairs that are tradable late at night, because this is the time period with the highest volume. In connection with these time zones you can also structure your trading. Of course, it depends on your profession when you have time to trade. And thus trading can be planned and structured.
Chart analysis and trading strategy
The last and most important part I consider to be the trading strategy. One should always – and fundamentally – be trained in chart analysis, because chart analysis can be learned very well and applied in a structured way.
For the area of chart analysis, we have developed a complete strategy here, which you can access via the member area, via link or in the video description. All you have to do is enter your e-mail address, to which we can then send a log-in. This is absolutely free and with no obligation. Just log in and watch the whole thing: The chart analysis is divided into a basic area, a technical area and the area where you find the signals, what the signals look like and also what you should pay attention to.
And in the third and last area we talk about money management, how to design and execute a trade.
Concluding remarks on this video about trading as a sideline
Here is a short summary of this video:
First, think about how much time you have available for trading besides your job. What does trading mean to you? Do you want to earn money with it and as quickly as possible? Do you want to learn trading simply because it is interesting for you? These are the first considerations that play a role for you.
Once you have done that and now know how much time you can spend on trading, you should consider how much capital you want to invest. The following is particularly important to me: As a beginner, only take the capital that you are prepared to lose. Under no circumstances take out loans for it, do not borrow money for it, and assume that the money you deposit into your trading account will not be available at first.
Once you have set up an account, please also think about which product you want to trade: Do you want to trade Forex, indices, gold, silver or maybe crypto-currencies. Then please inform yourself accordingly, choose a broker and a suitable broker model and try to integrate trading into your everyday life.
Finally, you need a strategy; for example, our trend scalping strategy. This strategy does not refer to “scalping”, i.e. something short-term, but to the fact that you quasi “scalp” certain areas, and it has a slightly different reference and is part of our member area, linked to the video description. And if you want to speed up the whole thing a bit, I would of course recommend our trader training. You can also find this in the video description. For example, there is the trading school that you can use, a video course with 16 – 17 hours of video material or our intensive coaching.