It’s difficult to trade forex for the full time. A lot of people are now part-time forex traders. As a result, there is a high risk of missing opportunities in the market.
However, there are good strategies to use when you are a part-time trader. The following are the most useful tips you can follow to trade the fluid forex market and gain profits consistently.
Forex Market Times
When, for example, you have a nine-to-five job and you can trade during limited times of the day, it is imperative that you know the best forex market times.
While the forex market is a 24-hour market, knowing what times the major currency markets are open will help you choose the best pairs to trade.
Here’s a list of those major markets:
- The New York market is open from 8 am to 5 pm EST
- The Tokyo market is open from 7 pm to 4 am EST
- The Sydney market is open from 5pm to 2 am EST
- The London market is open from 3 am to 12 noon EST
Use Stop-Loss Orders
Another useful tip for part-time traders is to take advantage of the automated tools available for trading.
You can employ a trading program which let information technology work for you, and this could be very beneficial.
You can implement stop-loss orders, which let you protect your money even when you’re not actively monitoring the trade and when the market makes some sudden move.
Price Action Trading
Part-time traders can also implement short but frequent trading sessions. Price action trading means analyzing the technical or charts of a currency pair to make trades.
You can analyze the upward bars and downward bars. Upward bars signal an uptrend, while downward bars signal a downtrend.
The key in this strategy is to trade off of a chart that best meets your personal and trading schedules.
Fewer Position to Hold for Days
You need to understand how your pairs move and take the time to really analyze the markets.
After examining the market and selecting currency pairs, it’s better for part-timers to hold them for a few trading days.
It is also highly recommended to use stop-loss orders with all the trades to minimize any losses you may incur when the market moves against you.
It is also wise to look at long-term trends, whether weekly or daily, instead of looking at hourly charts. If done properly, this can let you trade and gain profits even when you’re only looking at your computer once or twice a day.
As we have mentioned, a lot of opportunities can go under your radar when you’re a part-time forex trader. Therefore, setting up limit, stop-loss, entry, or exit orders can let you catch up with those opportunities. Most trading platforms have these features at no extra cost.
Take Advantage of Technology
You can also use your mobile device to keep your informed of the currency price movement even if you are not actively trading. This way, you can keep abreast of the latest market developments with ease and convenience.