This article looks at the most suitable foreign currency trading strategies for the part-time foreign exchange trader.
The aim of foreign exchange traders is to earn large amounts of steady income on a full-time basis; however, this is not always possible for the trader who has other time commitments. For these full-time traders you will have to complete trades over lunch breaks and after working hours. The primary problem faced by this trader is that the market moves so quickly you could miss trading opportunities. Furthermore, if you are in a trade you could lose great amounts of money as you may not be able to exit the position before the loss is felt.
Currency trading time options
It is important to consider the different times you are trading as this can affect the currency pairs you can trade effectively. It is recommended to trade the pairs that experience the highest liquidity during those currency trading times.
If you are a part-time trader operating on intermittent trading time period then you will experience larger problems. It is this type of trader that trades only one or two hours per day which means you will have to spread this limited time across all the tasks you must complete.
The foreign currency trading markets
If you are a foreign currency trader who is unable to trade on a full-time basis you would be required to work in the morning and return to trade in the evening. You must determine the exact time commitments trading require, and which currency pairs are most active during this period. In addition to the choice of currency pairs you would need to consider the suitable forex strategies to implement trades effectively.
The suitable part-time foreign currency trading strategies
Due to the limited foreign currency trading time you have, it is essential to find a suitable foreign currency trading strategies. It is important to consider these factors when looking for these strategies.
1. Entry and exit points
In order to set up the orders accurately you must establish appropriate and effective entry and exit points. The establishment of these points will determine that you do not miss any further opportunities. These cannot be implemented without extra cost to you.
2. Holding positions
In order to be effective on the foreign exchange market, you must consider the positions and currencies being traded. Once you have completed research and chosen the currency pairs to trade, you should consider limiting the amount of trades being traded. By riding these positions for prolonged periods you will show a greater chance of detrimental losses on the foreign exchange market.
3. Using foreign currency trading software
When considering the option of forex trading software you should examine the type of strategy you are using. The software will continue trading on your behalf through the trading period if you are not available. If you still decide to use the foreign currency trading software you should look at using mobile phone notifications to keep you up to date on market movement and your personal trades.
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