Trading Stocks as a Side Hustle While Working from Home

In our age – the internet age, opportunities abound. From the comfort of our homes, we can work. We can learn. We can even invest in the stock market. Many are drawn to this. Trading stocks as a side hustle. It’s alluring. It promises wealth. But is it the same as being a full-time trader? No. They are as different as night and day.

Benjamin Graham, a wise man, once said, “The individual investor should act consistently as an investor and not as a speculator.” He meant that trading is not gambling. It is calculated. It is deliberate. Speculation, though, is a risky game. It can lead to both quick riches and quick losses.

Warren Buffett, another sage in the investment world, echoes this. He advises, “If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes.” This quote draws a line. A line between those who jump from stock to stock and those who commit. Long-term thinkers versus short-term chasers.

Now, imagine juggling a job and trading. Both require focus. Both demand time. A full-time trader immerses. He breathes stocks. He lives for the highs and lows. But a side hustler? Their time is divided. Between work. Between family. Between other commitments. This division can be dangerous. Mistakes can be made. Not from malice. But from distraction.

History is a teacher. It shows us paths taken before. During the Tulip Mania in the 17th century, everyone became a trader. Butchers. Bakers. Even candlestick makers. Prices soared. Then they crashed. Many lost fortunes. Why? They weren’t professional traders. They were caught in the frenzy.

In the 1920s, the same occurred. The stock market enticed many. Shoeshine boys gave stock tips. People mortgaged homes to buy shares. But then the Great Depression hit. Stocks plummeted. Dreams shattered.

The dot-com bubble in the late 1990s is another tale. Stories of overnight millionaires spread. Many dabbled in tech stocks. They believed the internet changed everything. It did, but not in the way they thought. The bubble burst. Stocks tanked. Casual traders suffered.

These stories teach us. They warn us. Trading stocks is not a game. It’s serious business. For a side hustler, the risks are high. The rewards? Uncertain.

Now that we warned you about the risks, it is sure that not all part-time endeavors are doomed to fail. Many successes are born from small beginnings. Look at Apple, started in a garage. Or Amazon, from a single room. They began as side projects. They transformed industries.

Warren Buffett, an investment legend, began his journey while holding other jobs. His early ventures into stock trading were not his only focus. Over time, his side hustle matured into a primary passion.

Trading part-time does not equate to ill-preparation or recklessness. In fact, having a primary job can provide a safety net. It allows traders to be more patient. They can let investments grow. They’re not pressured to pull out funds for immediate needs. This aligns with Buffett’s principle: “The stock market is a device for transferring money from the impatient to the patient.”

Here are some actionable steps for those considering trading as a side hustle:

Educate Yourself: Use online resources, read books, attend seminars. Knowledge is your best armor against volatility.

Start Small: You don’t need a fortune to start. Begin with a small amount. Learn. Grow.

Diversify: Don’t put all your eggs in one basket. Spread your investments. It reduces risk.

Set Clear Goals: Why are you trading? Short-term gains? Long-term growth? Know your objectives.

Use Technology: Today, there are countless tools and platforms that can help. Set alerts. Use analysis tools. Stay informed.

Diversify your approaches: This is a strategy many successful investors use. Instead of taking data from only one source or approach – use multiple. Combine fundamental analysis with technical analysis. Combine indicators like RSI with candlestick pattern formations. Even use AI-assistants to generate trading ideas. All of these tricks will give you a clear trick. 

Historically, many have found success in part-time trading. Jesse Livermore began trading in his spare time. He’d read ticker tapes after his day job. With time and persistence, he became one of the most famed traders in history.

Peter Lynch, while known as a legendary fund manager, often touted the advantages individual investors had over professionals. Their flexibility. Their ability to be nimble. Their lack of bureaucratic constraints.

In essence, trading stocks as a side hustle is not a path devoid of merit. It requires dedication, yes. It requires learning, certainly. But with the right approach, patience, and a sprinkle of luck, the side hustle can become a golden goose. And remember, every expert was once a beginner.

For that reason here is our practical 5 steps to follow if you want to make the most of trading part time: 

1. Trade During Key Times:
   • Focus on market openings in the morning for maximum action.
   • Consider the Asian markets, which are active after typical work hours in the West.

2. Utilize 24/7 Platforms:
   • Use platforms like Morpher that allow round-the-clock trading.
     
3. Explore Cryptocurrencies:
   • Take advantage of the 24/7 nature of cryptocurrencies.
   • Dedicate weekends to dive deep into crypto trades.
     
4. Follow Smart Money:
   • Instead of spending your whole day doing research, take a shortcut and copy-trade big and famous investors
     
5. Embrace Automation:
   • Look into robo-advisors or automated trading strategies.
   • Manage and adjust your portfolio without constant oversight.