8 Powerful Steps to Successful Part-Time Forex Trading
Many struggle to earn passive income. With the 8 powerful steps, you can make money in a successful part-time forex trading venture.
However, forex trading is not easy because it comes with lots of risk factors.
If you want to do part-time forex trading without interrupting your present job or business, then it is important for you to formulate good forex strategies.
Can you do forex trading part-time? Read along to find out what the strategies are below.
Choose a trading time that works for you
Trading forex in a short time frame could provide good returns, but you must have an effective plan in hand. Scalping is a method that can provide good results in a short period of time.
A trader does forex scalping by holding a currency pair for a few seconds or minutes and then repeating the process numerous times.
These trades may only provide minor profits, but they may be amplified by increasing the size of the position.
However, this type of trading has a higher risk. So, you should consider it before you make a transaction.
Make the most of your time
If you have limited time for trading, there may not be any good deals when you log into the market. Nevertheless, you may still make good use of this time.
Backtesting is the process of looking at previous data to determine if a specific approach would have worked in the past. This is the best method to practice without taking any risks.
Use a software tool that allows you to experiment with performing simulated transactions to see how you would have fared in a real-time scenario. It also provides you with additional practice.
Use a journal to keep track of your progress
A trading diary keeps track of all of your deals and trading activities. You can use it to plan, reflect, and develop your trading strategy on a daily basis.
This may sound clear, but to be a forex trader, one needs to be methodical and meticulous.
You may monitor your profits and losses, and analyze what goes wrong and why.
These lessons will provide you with a solid foundation to be a successful part-time forex trader if you incorporate them into your trading.
Concentrate on active currency pairs
The exchange rate of the two currencies you will be trading is the quoted price of the currency pair.
The USD/EUR (US Dollar/Euro), USD/JPY (US Dollar/Japanese Yen), and EUR/GBP (Euro/Pound Sterling) are some popular currency pairings.
The international markets that are active and the currency pairings that are ideal to focus on at a specific time are determined by the time of day you are available to trade.
Being a part-time forex trader, you may find out that trading first thing in the morning is the best time to do so before going to work.
Trade at the start and end of the day
While it is doable being a forex trader while having a full-time job, you will need proper preparation and time management.
To suit within your daytime working hours, the best times for part-time trading are at the beginning and end of the day.
You can trade in the morning, then analyze the day outcomes with end-of-day analysis and charts.
If you notice currency pairings that appeal to you (the pairs that are active during the nights), you may opt to trade at that time.
Setting up trade orders
So, how to trade forex by yourself? Set stop-loss or entry and exit orders to ensure that you do not miss any single exit and entry position.
You can transact forex deals on online trading platforms, such as Tradehall, e-toro, XTB, forex.com and many others.
How do stop-loss orders work? They function to safeguard your money in the event the market takes a sudden and unexpected move against your position.
Focus on long-term trades
Pay lesser attention to short-term trade and always look for long term trends. Short terms trends mean hourly or 4-hours charts that would not give you more value as compared to longer-term trends like daily and weekly.
Use technology to trade
For part-time traders, allow your computer to be your trading partner.
You can use a trading program where information technology can work for you efficiently because the forex market is highly fluid and tough to monitor.
You can also set up alerts on your mobile phone to get updated/time-to-time emails. This method will keep you informed of currency price movements during your non-trading time.
Tradehall’s industry practitioners, trainers and experts are eager to share their insights and game plan for 2022 and beyond.
Learn more about successful part-time forex trading with Tradehall today.