August 1, 2015

How To Trade With a Day Job?

It’s a common issue. How do you fit in trading with a day job?

Actually for ‘day jobbers’ those with day jobs, I suggest using the 4h time frame. Additionally for those who are away from their computer I suggest a hard stop they can leave of 2xATR ie 2xAverage True Range from when they enter.

That solves the problem of being away from the desk. You will have seen from the video the profitability is still good on 4h. Average True Range is the range the price moves on average in the time frame (eg 4 hours) ie measured by the length of the bar.

This works because how much a bar moves on average is noise. If it moves 2x that then that is more than just daily volatility or noise. Also by ensuring if your hard stop gets hit, that you only lose 1% of your total trading capital, you are ensuring that you have a fixed small loss even if away from your computer that avoids the common problem of being too close to the entry (2xATR keeps you away) and too far and suffering a big loss (because you can only lose 1%).

(I’ve put more about this in the attached slides for you – I’ve used 2% of total capital as risk level in the example).