Are you a home-based trader? In the past, this might have been seen as a disadvantage. But today, more and more people are looking to work from home because it gives them flexibility in their schedule and allows them to spend time with their family.
However, even though there are many benefits of being a home-based trader, that doesn’t mean that it is easy. There are many pitfalls that can be avoided with some simple tips!
In this article, we will discuss 5 different tips for home-based traders, to allow you to trade in the zone and work from home effectively.
Separate your work and home life as much as possible
Separating your work from your home life is a little bit more complicated when your home is also the place where you work.
That’s why it’s always recommended to trade and work in a separate room to your living room or bedroom. Trading is complex, and will often have to be done while you’re away from your main computer, but trying to make sure you can switch off when in other parts of your home is vital for your mental health.
Being a trader is all about being on the ball, and you don’t want to be worrying about your kids coming into the room while you’re trading, as this could lead to mistakes being made.
Trading in the zone can only be done if you’re focussed, well-rested and somewhere that’s comfortable and free from distractions. This is why it’s important to think about this when setting up your home trading area.
Try and stick to set office hours if you can
Although this is difficult in the trading industry, home-based traders should try and stick to a set schedule when it comes to working in their home office.
Although trading often must be done at all hours of the day, it’s vital that you remember to take breaks and spend time away from the computer. If trading is your full time career, it’s important to remember that you need a mental and physical break from the market.
Take advantage of tax breaks if applicable
If you’re working from home on a full time basis, you will be able to claim certain tax benefits.
If your work involves running your own business or trading for a private company, you might be able to claim tax relief depending on what your work entails.
It’s important that if this is the case for you, you speak to an accountant or financial adviser so that they can help you with your tax returns. This will ensure that if applicable, the correct tax is paid and you can claim any applicable reliefs.
Start by trading with a demo account
It’s important that all home-based traders use demo accounts before trading with real money.
If you’re just starting out, it’s vital that you get a feel for the markets beforehand.
This is why it’s recommended that you open a demo account with your chosen broker before trading in the real market, so you can get a feel for what you’re doing.
Don’t worry if the demo account isn’t perfect, as it’s always possible to open another one with another broker.
Be sure to find great internet speeds in your home
One of the most important things a home-based trader can do is ensure they have fast internet speeds in their home.
It’s vital that you have a stable connection, especially if you’re going to be trading with others or part of an office. It simply isn’t efficient enough to lose out on trades and vital partnerships because of slow internet, as this is something that can almost always be avoided.
Although it’s possible to get this in the form of mobile data, it’s not recommended. This is because mobile data can come and go unexpectedly, and it’s likely that if you’re in the heart of your home, or trade in a basement office, your mobile data signal won’t be as good as required for speedy and efficient trading.
It’s always better to be safe than sorry when trading in a home office environment, as it’s unlikely that you have an IT team on hand instantly if something goes wrong.
Overall, making sure that you’ve got the right set up for your home office is vital if you want to be a successful trader. As well as this, it’s vital that you look after your own mental and physical health while trading from home, knowing when to take breaks so that you can stay focussed and manage your time efficiently.
This will ensure you can trade in the best way possible, and take full advantage of all the good things home-based trading has to offer.