Are you ready to combine your love of trading and traveling?
Imagine waking up in a new city every few weeks, with the freedom to explore and experience new cultures while also making smart financial decisions and potentially earning passive income through the financial markets.
Trading and traveling go hand in hand, allowing you to live a nomadic lifestyle while still being able to earn a living.
Are you ready to join the ranks of successful traders who have turned their passion for finance into a globally-mobile career?
In this blog post, I will cover all the best tips for trading while travelling, and some simple strategies you can use to make it as stress-free as possible so you can still enjoy your holiday.
The Right Mental State
Trading can be a stressful activity, especially when it involves significant amounts of money.
Here are a few tips to help you adopt a stress-free mental state while trading:
- Have a plan: It’s important to have a clear plan in place before you start trading. Know your goals, risk tolerance, and exit strategy before you enter a trade. This can help you stay focused and make better decisions.
- Take breaks: It’s important to take breaks and step away from the markets from time to time. Take breaks to clear your mind and relax. This means limiting your trading time to a minimum while on holiday.
- Practice mindfulness: Mindfulness is the practice of being present in the moment and not getting caught up in the past or the future. It can help you stay focused and make better decisions.
Tips for Trading while Travelling
Trading while travelling can be challenging, as it requires staying up-to-date with the latest market news and having access to a reliable internet connection.
However, with the right tools and strategies, it is possible to continue trading while on the go.
Here are some tips for how to trade while travelling:
- Use a reliable trading platform: Choose a trading platform that is accessible from your smartphone or laptop, and that offers real-time market data and analysis. This will allow you to stay on top of market movements and make informed trading decisions while on the move.
- Keep up with the news: Follow financial news outlets and use their app or website to stay up-to-date with the latest market news and analysis. This will help you understand the factors that are influencing the market and make more informed trading decisions.
- Use stop-loss orders: Stop-loss orders are a useful tool for managing risk while trading. These orders allow you to set a maximum loss that you are willing to incur on a trade, and the trade will be automatically closed if this loss threshold is reached. This can help protect your capital while you are unable to actively monitor the market.
- Use a VPN: A virtual private network (VPN) can help protect your online activity and keep your personal information secure while you are travelling. This is especially important if you are using public Wi-Fi to access your trading platform.
- Always plan beforehand: Have a clear trading plan and stick to it, even while travelling, to help you stay disciplined and focused on your trading goals.
- Track your trades: Stay organized and keep track of your trades, so you can easily review your performance and make any necessary adjustments to your trading strategy.
- Less is more: Remember to take breaks and relax, as travelling can be stressful and can impact your ability to make good trading decisions.
- Keep your trading plan simple: While it can be tempting to try and take advantage of every trading opportunity while you are travelling, it is important to keep your trading plan simple and focused. Stick to your trading strategy and avoid making rash decisions based on limited information.
- Time zones and market conditions: If you are traveling across time zones, you will need to take into account the different trading hours of the markets that you are interested in. In addition, you may need to adjust your trading strategy to account for any changes in market conditions or liquidity that may result from your travel.
- Use your “spare” time: When you are waiting at the airport, or travelling on long bus rides, you can use this time look at charts and place price alerts, so that afterwards you can focus on enjoying your holiday, and only need to take action when the price alerts get triggered.
Trading Strategies that Require Less Time
Once you have these things in place, you can start thinking about the actual trading.
If you are an experienced trader, you may already have a strategy that you can use while traveling.
If not, you may want to consider swing trading, or simple trend-following strategies that can be easily implemented even when you are on the go.
a) Swing Trading Strategies
Swing trading is a trading strategy that involves holding assets for a few days to a few weeks, aiming to capture medium-term price movements.
It is a form of active trading that is intermediate in nature, falling between long-term investing and day trading, so it does not require you to spend much time monitoring the markets like in day trading.
Swing traders typically look for assets that are showing strong price momentum and aim to enter trades at key support and resistance levels.
One of the benefits of swing trading is that it allows traders to take advantage of both the uptrends and downtrends in the market.
It also gives you more trading opportunities compared to long-term investing because it doesn’t involve holding assets for several years or more.
b) Trend-following Strategies
Trend following is a trading strategy that involves buying assets that are showing an uptrend and selling assets that are showing a downtrend.
The idea behind trend following is that prices tend to trend in a particular direction over time, and by following the trend, traders can potentially profit from these price movements.
Trend followers typically use technical analysis tools, such as moving averages, to help identify trends and make trading decisions.
They may also use stop-loss orders to limit potential losses if the trend reverses.
Trend following can be a viable trading strategy for traders who are looking to take a more passive approach to trading.
It allows traders to potentially profit from both long-term and short-term trends in the market.
How to Find Good Internet while Travelling
Spencer is an avid globetrotter who achieved financial freedom in his 20s, while trading & teaching across 70+ countries. As a former professional trader in private equity and proprietary funds, he has over 15 years of market experience, and has been featured on more than 20 occasions in the media.