Are you interested in earning some extra income? Are you analytical and good with numbers? If you answered yes to both of these questions, part-time stock trading might be the perfect gig for you. Read on to learn more about stock trading and how you can earn extra cash by doing it part-time.
What is Stock Trading?
Stock trading is the buying and selling of shares in publicly traded companies. When you buy shares, you become a partial owner of that company. As a shareholder, you are entitled to a portion of the company's profits, if any are made. You can make money trading stocks in two ways: by selling your shares for more than you paid for them (a capital gain) or by receiving dividends (a portion of the company's profits that are paid out to shareholders).
How to Get Started Trading Stocks Part-Time
If you're interested in trying your hand at stock trading, there are a few things you need to do first. First, you'll need to open up a brokerage account. A brokerage account is an account that allows you to buy and sell stocks. Once you've opened up your account and deposited money into it, you're ready to start trading!
When you're first getting started, it's important to tread carefully. Stick with well-known companies that have been around for a while and that have solid financials. And don't invest any more money than you're comfortable losing—remember, there's always risk involved in stock trading.
Further, many people think that the only time to trade is during full-time hours, i.e., Monday through Friday. However, this isn't true. There are actually many different part-time trading periods that can be just as effective—if not more so—than trading during traditional full-time hours. Let's take a look at a few of these different part-time trading periods so you can decide which one might be right for you.
The Pre-Market Session
The pre-market session is the period of time before the market officially opens for the day. This period can be very volatile, as there is often a lot of news released that can move the markets. For example, if a company announces earnings that are better than expected, you might see the stock price start to rise in the pre-market session. Conversely, if there is negative news about a company, you might see the stock price start to fall. The key to trading successfully during the pre-market session is to be aware of what news is coming out and how it might affect the markets.
The After-Hours Market
The after-hours market is the period of time after the market has officially closed for the day. Just like the pre-market session, this time can be volatile as news is released and companies announce earnings. The key difference between the after-hours market and the regular market is that only certain stocks are traded during after-hours.
The Extended Hours Market
The extended hours market refers to any time outside of regular market hours—which, as we've already seen, can present both opportunities and risks. One benefit of trading during extended hours is that there is often less competition, which means that prices can be more favorable for traders. However, it's important to remember that there are also fewer people trading during extended hours, which means that there can be less liquidity and more volatility. As such, it's important to approach extended-hour trading with caution and do your research before putting any money on the line.
Conclusion
These are just a few of the different part-time trading periods that you might want to consider if you're looking for an opportunity to trade outside of traditional full-time hours. Each one presents both advantages and disadvantages, so it's important to do your research before deciding which one is right for you. With that said, part-time trading can be a great way to supplement your income or even make a living if you're willing to put in the work required to be successful.
Nifty Trading Academy, one of the leading stock market training institutes in India, offers a comprehensive range of courses that covers all aspects of the share market. The academy has a team of experienced faculty members who provide practical training to students. The courses offered by the academy include technical analysis, fundamental analysis, and Options trading.
you can also check another intraday trading:
Growth Stocks vs Value stocks: Which Is Better?
What is RSI, and how to use it in Stock Trading?
What to do after the Current Stock Market Fall?