Not everyone can trade forex full time. Many forex traders are part-time traders with jobs and other responsibilities. But you can’t be a successful part-time forex trader with a strategy.
When you’re designing your part-time forex trading strategy, there are a number of different factors to consider and things to do.
Determine the Time You’ll be Trading
Certain markets are active at certain times of the day. If you live in the US, when those around you are sleeping, markets on the other side of the world are open and active thanks to time differences. If you’re going to be a part-time trader, it’s important you determine the time you’ll be trading so you can choose the markets which will be active at that time.
Know your Market
Whether you’re designing a part-time/full-time forex trading strategy, it’s imperative that you know the market. Know the securities you’ll be trading, their history and so on. Knowing the market, its tendencies along with other factors that affect it are essential to your success as a trader.
Use Technology to Your Advantage
Using technologies such as stop-loss orders and take-profit orders are a great way to minimize losses and increase gains when trading. You can use these along with other automated processes when trading to take some of the pressure off of yourself. No one should be sitting at the computer for too long so technologies such as stop-loss and take-profit orders are a great way to trade without much physical pressure.
Focus on Quality, not Quantity
When trading, do your best to focus on the quality of the position. Reduce the number of trades you make by trading better, not more. Not only will this prevent overtrading, but it will also reduce the chances of you losing you earnings before you’ve stopped trading for the day.
Get a Trading Journal
Time is precious and once it’s gone, it can never be regained. That’s why it’s important you don’t waste any on repetitive tasks. Record the information which you know you’ll need again so that when the time comes for it, you can use it without trying to remember it or searching for it.
At the end of the day, every successful trader knows that you need a strategy suited to you, your trading style, time and goals. Use these tips to design the part-time trading strategy that’s best for you.