It is no doubt that 2020 is a year that will live in infamy, unfortunately due to a less than ideal situation. COVID-19 has ravished the world, changing how people live, work, socialize, taking away jobs and many more lives. This disruption to the way people function within society has and will continue to shape the world economy for years to come. Many industries will die and many being founded now will flourish.
As the number of jobs moved to home operations sits at an all time high, many project that this trend will persist and perhaps even continue to grow after the microscopic threat subsides. An April 2020 MIT survey of 25,000 Americans has shown an increase of working from home of over 100% of pre-COVID levels. That means that nearly half of the U.S. workforce may now be remote workers. Many companies have noticed increases in overall productivity, employees enjoy the freedom of working from home, no more commuting and more opportunities to pursue hobbies and personal interests. It’s very likely that the work-from-home movement, at least to a higher capacity, is here to stay.
The COVID Market Impact
Due to the pandemic and its global implications to the world economy, 2020 to date has been an exceptionally volatile period as nobody seems to know the long-standing impact this pandemic will have. These are unprecedented times of which speculation of what is going to happen is running wild and that uncertainty is causing many to panic while others are seizing opportunities in a phenomenal trading environment.
Long term investing will always shy away when volatility peaks. The common buy and hold, stay the course mentality has of course historically done well however that is also the investment strategy that can be extremely vulnerable during severe market declines. Long term implications of a post-COVID world has many traditional investors worried.
Day traders have begun seeing their time in the sun lately by being nimble during volatile times and taking advantage of many opportunities that have become apparent. The ability to be on either side of the market at all times will provide opportunities regardless of the macro economic situation.
Is it Time to Become a Day Trader?
Many who aspire to be day traders are unable to do so for various reasons, a large one being the fact that they are at work during key trading hours and are simply unable to participate. COVID has unlocked opportunities for some who would like to day trade and are now able to do so by working from home. While I’m not advocating abandoning your actual job while telecommuting to day trade; You can absolutely be involved in the markets with less attention and focus than you think.
Trading programs and systems exist which can help take some of the guesswork out of finding trading opportunities throughout the day. Lucrum Ruby is capable of generating audible alerts when the system identifies a trading opportunity. This allows you to keep minimal focus on the markets themselves until a signal is generated. Once generated you can do a quick analysis of the opportunity and see if it is a signal you feel like taking and execute the trade. Following rule based or mechanical trading lessens the impact of intra-trade analysis to keep you focus where you need it to be.
It is very evident that this uncertain trading environment breeds volatility which means more opportunities for the day trader. The real kicker is that now, thanks to telecommuting, the dream of becoming a day trader for some may now be a reality.
Regardless if you’re new to trading because of work-from-home opportunities, new to trading in general or even an experienced trader it is more important than ever to look out for the stability of yourself. If COVID has taught us anything it is that things can change quickly and there is no amount of planning you can do to be fully risk-averse. Day trading and trading in general is not an easy endeavor and many for whichever reason will not succeed at it. Do not jeopardize you or your family’s well being by trading on an account that you could not survive without.