Part-time Forex trading can be one of the best ways for you to earn a living. Numerous forex traders are making a decent amount of money by buying and selling currencies. But in order to make a good profit, you need to analyze the market trends and invest very carefully.
You will have enough time to trade in the Forex market as it is open 24 hours a day. However, since you want to be a part-time Forex trader, you will get a limited time for trading. So if you want to be a successful part-time forex trader, you have to utilize every minute of your trading time. Don’t delay to take decisions. Choose a time when market liquidity is at peak and big markets are active.
How to Become a Successful Part-Time Forex Trader
There are 9 ways to successfully trade part-time:
- Pick a Suitable Trading Time
- Utilize Your Time Properly
- Take a trading style that matches your schedule
- Track Your Trade with a Trading Journal
- Focus on Right Currency Pairs
- Do not Delay to Make Decisions
- Use Automated Trading System
- Focus on Short Term Trade
- Keep an eye on Beginning and End-of-Day Trading
1. Pick a Suitable Trading Time
The Forex market is a market where you can trade 24 hours a day, 5 days a week. Since you will be doing part-time trading, you need to choose a trading time that is suitable to you.
You should have a specific strategy to maximize your profit. Because it is very difficult to succeed in part-time trading without particular strategies.
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2. Utilize Your Time Properly
A part-time trader does not have time to make a day-long trade. Because those who want to do part-time trade must be associated with another profession or business. Since your time is limited, you have to utilize the time you spend on Forex trading.
You will be able to take advantage of the time only if you have a very decent knowledge of the Forex market and do a lot of practice.
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3. Take a trading style that matches your schedule
As a part-time trader you will have the opportunity to trade for a limited time. But in this short time you can earn a satisfactory profit if your trading style matches your schedule.
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4. Track Your Trade with a Trading Journal
A trade journal is a written record of all your forex trades and activities. If you want to be a successful part-time Forex trader, you must keep record of your daily forex activities in this journal. This will help you to create a sharp plan for forex trading.
Although maintaining a trade journal is a tedious task, you need to do it at regular intervals. You can find out if your trading strategy is right from the trade journal. If your current trading strategy is not working well then refine it.
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5. Focus on Right Currency Pairs
You know that Forex trading occurs 24 hours a day. As a part-time forex trader you need to choose a time when the market has the most liquidity. So I would suggest to trade during peak volume hours.
Having more liquidity means that the market is most active at that time. Due to which you can easily sell your position.
We know that every transaction in the forex market is based on currency pairs. There are different types of currency pairs such as – USD / EUR, USD / GBP, USD / JPY, USD / CAD, USD / AUD, USD / CHF. As a part-time trader, you need to focus on currencies that have very strong liquidity. USD / EUR currency pairs are the most liquid currency pairs, so you can focus on that currency pair.
Those who are very experienced traders and can trade by analyzing the current market situation can invest in low liquidity currencies.
6. Do not Delay to Make Decisions
Those who are involved in Forex trading for a limited time have to take advantage of every minute. They have to make quick decisions about currency trade in a short period of time. Because if you delay in making a decision, good chances may be missed.
Even if you make a decision in a short period of time, you must make a decision by analyzing the market. For this you have to do homework, spend time on forex charts, as well as journaling and backtesting.
Since you will be trading for a limited time, there is no chance of holding the currency for a long time. Only trade when you see an opportunity for profit and stop trading after making a profit.
7. Use Automated Trading System
As a part-time trader you can trade manually if you wish or choose an automated trading program. Automated trading programs will make your forex trading easier and faster.
There are several types of automated trading programs that you can use in currency trading. Some programs will inform you the real time price of currency. Some programs will execute currency buy and sell orders, allowing you to place order limits or close orders in particular situations.
There are various automated trading programs for beginner part-time forex traders, such as – set and forget, plug and play, etc. These programs have the ability of taking decisions automatically. But if you are experienced forex traders, there are many more advanced automated programs with more programmable options that you can use.
8. Focus on Short Term Trade
The Forex market is a very volatile market. Currency prices are constantly rising and falling. Due to which it is difficult to make too much profit by holding the currency for long term. You may think that the price of the currency you are holding will soar. But since this market is highly volatile, the price of the currency can fall for any reason. Those who are full time traders can always be active in this market. So if for any reason the price of the currency falls they can take immediate action.
Since you are a part-time trader, it is not always possible for you to be active in the Forex market. So it would not be right to take the risk of holding the currency for the long term. When the opportunity for profit comes, do not hesitate to take a quick decision.
9. Keep eye on Beginning and End-of-Day Trading
Part-time traders can start their trading at any time of the day. But it would be best if you could start trading at the beginning of the day or end of the day. If you start trading in the morning session, you will find the world’s largest markets active. And if you want to join the Forex market at the end of the day, you can easily decide to invest by analyzing the market trends throughout the day.
If you want to be a successful part-time forex trader you must be disciplined, dispassionate and persevering. You can’t make the right decision if you don’t have discipline. And if you are excessively emotional, you will not be able to trade steadily. Emotions can inspire you to make quick profits, but it may the cause of loss. Those who are persistent can make decisions effectively. In the Bear and Bull markets they can make right decision on a cold head.
If you are a beginner you should choose an automated trading program because beginners have very little knowledge about the market. Then when your experience reaches a certain level you will be able to trade on your own way.
You have to remember, the forex market is very volatile so there is no guarantee that you will be able to make a profit. If you can make the right decision at the right time, you will be more likely to make a profit. However, you should have a realistic goal that how much profit you want to make.