CHALLENGES HOME-BASED TRADERS GO THROUGH

I have been trading from home since last many years.

Thanks to technological advances, you can do everything a trader need online. These days you can open your trading account with only a small deposit and e-KYC in few hours. This has led enthusiasts to incorporate trading as a source of income while others are motivated to trade more fully.

Today we are going to look at the most common issues a trader face when trading from home. Before embarking on a home-based trading – whether part-time or full-time – you should know that there is a big difference between trading from office and trading from home:

1. Setting proper trading setup


The first thing you need to work on if you’re planning to trade from home is establishing a proper work space. Trading from home doesn’t have to mean trading from your bed or the same dining table that your kids just spilled their food on. Since you’ll be dealing with the same markets that Pro-desk traders are battling with, you’ll need to establish an proper space so that you can concentrate. Start with your personal space. Get a room or a corner where your housemates can’t easily disturb you. Next, acquire trading essentials like a fast internet connection, a wide trading desk, a comfortable chair. Always keep backup for internet connection and power in case of emergency.

2. Limit distraction


The biggest difference between trading from an office and trading from home is that your office doesn’t have your TV, your bed and whatever comforts and distractions that you have at home. You can’t focus on your usual trading news if you’re watching a season finale on Netflix. Similarly, you won’t be able to execute your trades if your mom is asking you to do errands or if your children are demanding playtime. 

Consistently profitable trading requires focus. Minimizing distractions is key if you want to execute your trades according to your plan.

Limit distractions by establishing and sticking to a trading schedule. Find out which trading sessions agree with your schedule and measure the time you need to do your trading-related activities. Allocate a “me-time” if you must, but make sure that you’re doing nothing but trading during your allotted trading period.

3. Adopting a trading-friendly environment

Office-based traders have the advantage of working in a trading-friendly environment. They have a fast internet connection, complete sets of monitors, and a TV that displays trading-related data all day. More importantly, they have fellow traders in the room that they can bounce their trading ideas or be competitive with.

This type of environment is a bit difficult to replicate in a home setting. As important as it is to establish an office space and trading schedule, it’s more important to foster an environment where you can get into the trading zone.

One way you can work on this is to include your trading environment in your TRADE BOOK.

Bottom line is that trading is a business whether you’re making your trades from an office or from home. If you can’t get around the distractions from home or you can’t get into the trading zone outside of an office setting, then home-based trading is probably not for you.

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