Forex Strategies for Part-Time Traders

The post Forex Strategies for Part-Time Traders by Jay and Julie Hawk appeared first on Benzinga. Visit Benzinga to get more great content like this.

If trading forex full-time isn’t practical for you, then you can definitely consider trading part-time instead. Many part-time forex traders already work in other professions, so they find the time to trade currencies during their lunch hour, breaks or outside of work hours since the forex market operates around the clock. 

To successfully trade forex, however, you’ll still need to apply viable forex strategies that can work for you in the time you have available to trade. One of the most important elements in becoming a successful forex trader is the time you devote to the endeavor. Furthermore, the more time you can afford to dedicate to developing a successful forex strategy, the better your chances of attaining your forex profit goals. 

If you plan on trading forex part-time in the future or if you already have one or more forex trading strategies you use on a part-time basis, keep reading to find out the best forex strategies for part-time traders.  

Can You Be a Part-Time Day Trader with Forex?

Since the forex market remains open 24 hours a day 5 days a week, just about anyone with a reasonably modern device connected to the Internet and a small amount of cash to deposit in a margin account can day-trade forex part-time. 

While day-trading the forex market part-time may sound challenging at first, a trader armed with any one of a number of viable forex daily trading strategies can have success trading the forex market. The key to being profitable as a trader depends in large part on the strength of your trading plan, the strategy you use and whether you have the personal discipline required to stick to it. 

One of the major advantages of trading forex part-time is that you can hold another steady job to make sure your bills get paid. Then you can trade forex in your spare time with the extra money you earn that you can afford to put at risk.  

8 Strategies for Trading Forex Part Time

If you’re interested in trading forex part-time, then you’ll want to check out the list of eight key forex trading tips that Benzinga has compiled below. 

Study the Forex Market

Before you jump into trading forex, even as a part-time trader, you should first take the time to understand how the forex market works, which includes the various fundamental factors that move the currency market. You can invest in your forex training in various ways, and you should also determine what trading times will suit your schedule best if you cannot devote yourself fully to trading. 

Understand Forex Market Hours

Unlike most exchange-traded markets, the over-the-counter forex market trades around the clock from 5 p.m. on Sunday evening to 5 p.m. on Friday evening New York time. It does this by operating in a series of different money centers during a given 24-hour period. The forex trading day starts in Sydney, Australia; moves on to Asia centered in Tokyo, Japan; then moves to Europe centered in London, U.K.; and finally moves on to New York in the U.S.  Although some currencies trade more actively in their home time zone, you can trade all major currencies in any of these time zones. This feature makes part-time forex trading especially feasible for those already employed. 

Use Stop-Loss Orders

As the name implies, stop loss orders are generally used to prevent a loss from getting worse. They consist of market orders that get triggered once an exchange rate level worse than the prevailing spot rate trades. If you plan on running trading positions when you cannot focus on them as a part-time forex trader, then having a stop loss order in the market makes a lot of sense to prevent a sudden adverse move from wiping out your trading account. 

Implement Price Action Strategy

A price action trading strategy is generally based on technical analysis and gives objective trading signals based on what price levels trade. Price action strategies can let part-time traders leave an order in the market when they are busy focusing on their main job. Such a strategy can also really assist you in removing the emotional involvement you might have regarding your trading activities. 

Look Over Forex Trends

Most forex traders look at hourly charts and even shorter time frames when timing their trades, although part-time traders can find it especially beneficial to look at daily and monthly charts, as well as some technical indicators like moving averages, to better understand the prevailing trends in the forex market before taking a position.

Take Fewer Positions and Hold Trades

Substantial benefits exist to taking fewer positions since you can then focus on those that have the best chance of succeeding. You can also hold trades overnight rather than closing them out intraday since trend moves often progress over a period of days or even weeks. Holding overnight positions can substantially increase your returns, although you will also need to take the added risk of holding positions when you cannot focus on them. 

Set Up Trading Orders

You can use a price action strategy to set up trade entry orders. Once you have a position, you can set up a stop-loss order to prevent losses and a take-profit order to exit your position with a gain. 

Set Up Automated Alerts

Most trading platforms and online brokers will let you set up automated alerts on your phone or computer to get updates on the market when particular levels trade, as well as notifications when your orders are executed. You can even get the latest forex-related news on your device so you can keep in touch with major market developments. 

Best Forex Brokers for Part-Time Traders

Part-time forex traders can use just about any reputable online forex broker that provides the needed educational materials, although Benzinga has compiled a short list of the best forex brokers for part-time traders shown in the comparison table below.

Frequently Asked Questions

The post Forex Strategies for Part-Time Traders by Jay and Julie Hawk appeared first on Benzinga. Visit Benzinga to get more great content like this.