How to Trade Stocks When You’re Traveling?
Are you traveling abroad soon? Are you worried about trading stocks while you’re on the go?
Traveling is fun and exciting, but when you’re traveling for work, it can be very stressful.
You have a lot of trouble sleeping, and you become very irritable. Not to mention you’re always worried about missing out on the market.
But don’t worry – you can trade the stock market from anywhere, as long as you have a laptop and an internet connection!
All you need is a reliable platform that can sync with your mobile device, and you’re ready to go.
In this article, I’ll show you how to trade stocks from your smartphone – and teach you a few tips that can help you make better trades.
Now let’s jump right into the tips.
Stick to a Daily Trading Plan
In today’s market, trading has become a way of life for many people around the world. It’s a lot of fun and has the potential to generate a lot of money.
Many traders lose money because they lack discipline. Discipline means sticking to your trading strategy and following your trading plan each day.
Every day is different and the market tends to move in unpredictable ways. However, by following your trading plan you can ignore the noise and focus on your trading activity.
Even if the market goes in the opposite direction of your plan, you still have to stick to your plan and follow it.
Discipline means not trading when the market isn’t in your favor and not making emotional decisions.
If you’ve developed a trading plan and it works for you, then follow it every day, especially when you’re traveling.
Taking small losses is part of trading but taking bigger losses is a much bigger problem because it hurts your trading account.
Make Sure You Have an Online Brokerage Account
Before you can trade, you need to open an online brokerage account. It’s best to choose a broker that offers a good range of trading instruments, such as stocks, options, futures, and forex.
Some brokers offer low commissions or fees for trades while others offer bonuses.
Remember that every broker has slightly different offerings meaning that your broker might be different to what your friends use.
If your family and friends trade with the same broker as you and you like their trading experience, then that’s great. Otherwise, you should compare the various offerings of brokers and see which one is best for you.
Be sure to read the fine print and to understand what the broker offers before you open an account.
You should also consider your account size and the features offered by the broker and make sure they match what you need.
Having an online trading account before you go on the trip is important. Because without it, you simply can’t trade.
Stay Informed about the Market
As traders, we need to stay current on the markets we are trading in. But with so much information out there, it’s difficult at times to keep up to date with what’s happening.
But trust me, staying informed and up to date on the market will make you a better trader in the long run.
One source that you can use is blogs. They typically provide technical analysis that can help you spot patterns in the market.
Some blogs even provide commentary from experienced traders and may provide insight into market sentiment.
Wealthy Education is also a great educational trading platform for traders. They have videos on all of the different asset classes and markets around the world.
You can also subscribe to newsletters from professional traders. These newsletters usually include technical analysis and commentary as well as trade ideas.
Another source is podcasts. Some traders prefer listening to a podcast while on the go rather than reading a blog or watching a video.
But it’s important to remember that not all sources are created equal. Sometimes the information you receive from a source may not be accurate or relevant.
So before you rely on any source of information, make sure to conduct your own research as well.
Manage Your Money Wisely
Managing your money wisely is a skill that will serve you well as you learn how to trade. When you’re traveling, you want to balance risk and reward to get the most out of your trades.
As you start out, it can be overwhelming to see all the different types of trading instruments that are available right now.
But it’s important to keep your trading account small so that you can learn to manage it properly.
You’ll need to have enough money in your account to trade, but not enough to trade too big of position size.
As a beginner, learning how to manage risk is key. You want to start with small positions so that you can get a feel for trading and risking money.
Set a trading budget for yourself and stick to it.
Don’t chase the next hot stock or trade just because you see an opportunity to make money. Stick to your trading plan and your trading budget.
Avoid taking trades on margin, such as CFDs, futures, or Forex. They introduce too much leverage to your trading and can result in outright losing your entire account.
In the beginning, you want to learn to trade your own money and be comfortable with managing it.
As you become more advanced and once you have learned your craft, you can scale up to a real money account.
Have a Proper Risk Management Strategy
As a beginner trader, it’s extremely important that you don’t risk more money than you can afford to lose.
You need to calculate exactly how much money you can afford to lose and divide it by the number of trades you intend to take in a day.
For example, if you have $500 in your account and you want to risk $10 on each trade, then you should take no more than 5 trades per day.
By calculating how much money you can lose on each trade and sticking to that limit, you can avoid blowing out your account in a single trading session.
It’s very easy to get caught up in the excitement of the financial markets and lose control of your emotions when you’re in the moment of the trade.
But you need to have a proper risk management strategy in place so that you can stay on track and avoid making impulsive decisions that can jeopardize your trading account.
It will be helpful to keep everything on a sheet of paper or a spreadsheet. This way you can easily keep track of how much you’re risking per trade.
Know Your Rules and Keep Them Simple
Trading can be complicated and there are so many different strategies out there.
Some traders use complex indicators and strategies that take a lot of screen time to learn to interpret.
The simple truth is that most indicators and strategies have flaws or limitations. So the best way to start out is by trading simple strategies.
First of all, simplicity is a virtue in trading.
There are dozens of different trading strategies out there, but only a fraction of them are profitable.
Many traders who rely on complex strategies fail because they simply don’t understand them or know how to adjust their settings properly.
Secondly, it’s best to pick a simple strategy that you understand well.
Some traders rely on complex strategies to make money but don’t understand what they are looking at or why it works.
That’s not a trading strategy, that’s a black box that depends on luck rather than skill.
Instead of relying on luck, it’s better to start with a simple strategy and master it rather than trying to trade several strategies at once.
When you’re new to trading it’s easy to get caught up in the excitement and be tempted to trade everything in sight.
Over-trading is a common trap for traders in the beginning and this can lead to painful losses and blowouts in your account if you’re not careful.
It’s a good idea to only trade when you have a system or method that you feel good about. If you’re not making consistent profits with your trading methods, then it’s time to make some changes.
When you’ve practiced your trading system for a while and you feel that you’re profitable, then it’s time to start adding positions to your strategy.
Once you get into a position, avoid the urge to add more positions to your strategy. This will lead to overtrading and blow up your account.
Don’t Stop Learning
Trading is a lifelong process. A trader never stops learning. Even the best traders in the world are constantly learning and improving.
As a professional trader, you must also stay fresh and update your skills.
There are hundreds of trading strategies and methods available out there. You need to pick one that works best for you and stick with it.
When you find a trading system that works, you should stick to it and learn as much as you can about it in order to perfect it over time.
Even if you find a strategy that works initially, you’ll eventually run into problems if you don’t understand the system and how it works.
Also, don’t stop learning just because you’ve found a profitable system.
Trading stocks while traveling isn’t for everyone. However, if you are someone who likes to trade then trading while on vacation might be a good option for you.
You need to be careful when picking your broker and make sure they’re legitimate and have a track record for stability and reliability.
Pick one that offers good support and access to research tools so you can stay on top of the market while away on vacation or traveling for business.
Keep in mind that trading is only for the brave and only for those that are willing to endure the ups and downs of the stock market.
Trading is hard work that requires dedication and discipline. Many traders fail because they lack the ability to take losses and move on from them.
Don’t get discouraged by losing trades and accept them as learning experiences that will help you become a better trader.
Last but not least, don’t trade with money you can’t afford to lose and remember that every trader makes mistakes.