Nowadays part-time Forex trading is considered to be one of the most successful ways to supplement income, part-time traders are especially attracted to the 24 hour nature of the Forex market. Not many people can trade Forex full time, some of them make their trades at work, lunch or night. In fact, the main problem with part-time Forex trading is that the market is fluid and trading sporadically throughout a small portion of the day can create missed opportunities to buy or sell. Here are several useful tips for part-time traders:
Find the right currency pairs
Although Forex is a 24- hour market, as a part-time trader, you had better trade during peak volume hours to guarantee liquidity, as it is much easier to sell a position when the market is most active. Experts advise beginner traders to trade U.S. currency against different foreign currencies. For experienced part-time traders, who have more time to research conditions that can have an impact on currency prices, here are the pairs that offer high liquidity: EUR/CHF, EUR/GPB, EUR/JPY. Since part-time traders don’t have plenty of time for trading, experts advise them to trade only the USD/EUR pair, as this pair is traded very frequently, and there is much information available on these currencies.
Set up an automated trading system
There are various automated trading programs offering a full spectrum of functions available on the market. Some of them can monitor currency prices in real time, place market orders, as well as recognize profitable spreads and automatically order the trade. It is worth to note that even if a trade is ordered, there isn’t any guarantee that the order will be filled on the trading floor at the price you expect, especially in a volatile market.
Choose your trading strategy
If you aim to become a successful part-time trader, you should choose a Forex trading strategy that meets your trading requirements. You can choose from various Forex trading strategies, here are a few of them:
Take fewer positions and hold for days
When you study the market and narrow down particular chosen currency pairs, then take only a few positions and hold these positions for a longer period of time. It is important for you to understand the drivers of your currency pairs and the market. Another wise strategy is putting in stop-loss orders with all your trades for minimizing any losses, when the market moves against you.
Look at long-term trends
Looking at the trends for a day or week will help you trade while looking at your computer only once a day.
Set up trading orders
Setting limit, stop-loss or other entry/exit orders will allow you not to miss opportunities to enter or exit positions. With most trading platforms you can set up these orders with no additional fees.
As a part-time trader, you will have better chances of making money, if you follow the tips described above.