The majority of the population have extremely busy lives. Some individuals hold down more than one job, others study part-time while working. It’s a fast-paced world we live in and not all traders are able to trade on a full-time basis. Those who do not trade full-time will often trade when they find the time, such as before work or just before retiring to bed at night.
Although this part-time trading shows dedication and commitment, it is not an advantageous method of trading. The forex market is fluid and constantly fluctuating, a situation where part-time traders could miss great opportunities frequently. This could mean losses and a detrimental decrease in funding.
While this seems a dismal situation, there are some forex trading strategies which can support a part-time schedule. One of these is to trade specific currency pairs. This will require the trader to limit the types of currencies they are trading based on the volumes during a 2-hour cycle. This is generally more effective for the part-timers trading at night.
The main problem arises when reviewing daytime part-time traders. These individuals might pop in and out throughout the day without much structure, appearing a few times per day or once per week. Those with inconsistent trading schedules could benefit from the following strategies.
Choosing the Best Trading Times
Based on the assumption that the trader works a 9-5 day, there is the option of trading before or after work. The most convenient strategy for this part-time trader is working within a certain block of time. The forex market has four major exchanges. These are New York, Tokyo, Sydney and London and it is important to know which market is open during your trading time block. Furthermore, you should choose the most frequently traded currencies within that time period as this could lead to greater profits.
Forex Trading Strategies which Include Stop-Loss Orders
Most part-time traders are only available to trade for a few hours or less per day. If this is the case, the best trading strategy would be a technological one. By using forex trading software, or a forex ‘robot’, you will be able to take part in all the potential missed opportunities. The programme engages in and monitors your trades based on certain parameters you will have set. Another popular strategy is to include stop-loss orders. A stop-loss order is a protective factor ensuring that should the market take a sudden move against your position, your money remains safe.
Price Action Trading
Some part-time traders choose to check in on their trades consistently throughout the day – every 10 minutes or so. This strategy can be effective over a brief period of time, but does not assist in ensuring no opportunities are missed. To optimise these brief, yet frequent, trading periods is a price action trading strategy.
The price action strategy is one that analyses the charts of the currency pair and trades based on this information. By perusing these charts, the trader can determine which trade would be best. Generally, traders would choose an up-chart as it indicates an up-trend, whereas a down-chart indicates a down-trend. Choosing the chart timeframe that best fits in with your schedule is the key to trading success.