Time stops for none and utilising it well is how human lives work. When it is about Forex trading, time is an important and essential factor.
Forex trading is one of the most uprising things in today’s world and a lot of people are showing deep interest in it. Forex trading can be carried out anytime – you do not have to wait for specific hours to trade, as it is open 24/7. However, many people choose part-time trading because everyone might not have the available time in hand.
Some people even opt for it as an additional way of earning money apart from their permanent 9 to 5 jobs. When it comes to part-time Forex trading the key to success is nothing but to simply specialise in the currency pairs that trade during your availability. It is also about exploiting smart strategies that do not demand round the clock monitoring.
If you think you may not be able to strive as a part-time Forex trader do not stress. The following strategies might help you to succeed even without a lot of time in hand like full-time traders with utmost efficacy.
Here are effective strategies you can implement to make the most of part-time trading and bring home attractive profits:
- Know your Forex markets: The first and foremost strategy of a part-time Forex trader is to understand the Forex markets. Because this allows traders to figure out the timings of the markets, especially when their suitable markets are most active. Distinct markets around the world become active at different times. Therefore, you can pick a time slot that you can attend when you are at home or taking breaks from your office work.
- Find the correct pairs to trade: Forex trading has no definitive timeline and it’s functional every hour of the day throughout the week. But there are certain hours daily that are peak hours of active markets and the best time to trade for assured liquidity. Liquidity refers to a trader’s ability to sell a position. This is made possible with much ease when the market is highly active. Therefore, find the correct pairs to trade whose peak volume hour or active hour is best suitable for you.
- Apply disciplined decision-making: For traders who do not make use of automated trading systems, dispassion and discipline are crucial to taste success. It’s smart for part-time traders to take profits when they marginalise instead of being hopeful of generously proportioned profits or wider spreads. Most smart and successful traders whether they trade part-time or not prefer to collect profits when there is a possibility because there is no guarantee to the fact that a trend may not turn around out of anywhere. A trend can switch at any point due to unanticipated external events.
As a part-time trade, you can also start off trading with small amounts of currency by simply opening a mini Forex account. This type of account demands a far lesser amount of currency than a standard cash deposit.
- Utilise automated trading system: Setting an automated trading system might be quite like hitting a gold mine for most of the part-time Forex traders. Especially if you are new in this game or have very little experience. You can always opt to trade on your own or you can opt for this strategy. There are several types of automated trading systems available for choosing that carry out a wide range of functions. Some of the functions that these automated trading systems can provide include placing market orders, monitoring currency prices in real-time, automatically ordering the trade and recognising profitable spreads.
Making use of an automated trading system is great for part-time traders because it does not require constant checking. Instead, the system offers to make disciple, professional and unemotional trades. Basically, you need to make use of your computer as your trading partner. Letting software and information technology can be beneficial because it’s difficult to monitor the Forex market which is fluid. If you have much experience as a part-time trader, you can opt for automated trading software that allows more programmable options.
- Stop-loss orders: Another common strategy that you can apply as a Forex part-time trader is stop-loss orders. Applying stop-loss orders allow you to protect your wealth from an unfortunate situation if and when the market makes a sudden move that is not in your favour or against your position.
Some of the other Forex trading strategies that may serve you well as a part-time trader include: –
- Exploit modern technology: That portable electronic device that you probably are addicted to, can help you ease your part-time trading experience. Yes, your mobile phone can help you. All you have to do is set up automated alerts to your mobile devices or emails to keep you updated on the currency price movements while you are not actively available to trade.
- Set up trading orders: Setting stop-loss, limits or other entry or exit orders can help you make certain that you do not miss out on any opportunities to enter or exit positions. Most trading platforms allow these trading orders without demanding any extra sum of money.
- Keep an eye out for long term trends: Instead of looking at hourly charts keep an eye out for long-term trends such as daily or weekly. This is because long term trends have much value and allow you to trade without having to look at your computer for more than only once a day.
- Take up fewer positions and hold onto them for days: It’s of the utmost importance that you understand the drivers of your currency pairs. You will also need to understand your market situation. After gaining all the necessary knowledge and awareness, narrowing down particular chosen currency pairs, selecting a few positions, and holding onto them for days is a sensible strategy for part-time traders.
If you think with an open and logical mind you will notice that part-time trading is not as complex as you think and a very possible thing to do. All you need at a basic level is discipline, dispassion and the knowledge of trading the appropriate currency pairs.
Therefore, go ahead and start Forex trading for part-time today since it’s a very successful supplement to your income as well.