What are the strategies for part-time forex trading?
Not too many folks are free enough to trade forex full-time. Traders, compelled to make their trades at work, lunch, or night, feel that with such a flowing market, trading intermittently throughout the day leaves them with missed opportunities.
For the part-time trader, these missed opportunities could be catastrophic. Forex Strategies for Part-Time Traders help you work within the framework of a part-time schedule.
At first reading, part-time traders ought not to have many problems at all. Those trading at night could be limited to currency types they trade on the basis of volume during the 24-hour cycle. These night traders ought to use the strategy of trading particular currency pairs that are most active overnight.
You have the instance of the Australian Dollar/ Japanese Yen pair or the New Zealand dollar/JPY OR AUD pair. It becomes essential to understand the correlation between currencies when going for a pair since having time during the day to follow the market and place trades can make for a successful strategy.
The part-time trader’s FX markets
If you work nine to five in the US, you could trade before or after work. Such time blocks dictate that you opt for the most active currency pairs(those with the maximum price action). Knowing the times the major currency markets are open will help in going after major pairs.
- NY 8 am-5 pm EST;
- Tokyo 7pm -4am EST;
- Sydney 5pm-2am EST;
- London 3am-12 noon EST.
When Japanese and European markets are in full swing, part-time traders may go for major currency pairs. These encompass the EUR/JPY pair or the EUR/CHF pair for major pairs that concern the Hong Kong dollar (HKD) or Singapore dollar (SGD).
The AUD/JPY pair could also be in sync with part-time traders free during the 5 p.m. to midnight timeframe. Even as it is vital to understand the best FX pairs compatible with your schedule, the trader has to examine further said FX pairs and each currency’s fundamentals prior to placing bets.
Stop-loss orders
Allow your computer to be your trading partner. The capacity to use a trading program where you may permit the IT work for you could be advantageous since the FX market is in so much flux as to be beyond consistent monitoring. For example, the part-time trader could use stop-loss orders, implying that your money is protected even when the market makes an abrupt move against your position.
Forex price action
There’s even a strategy for part-time traders popping in and out of work. These brief but regular trading periods can be compatible with implementing a price action trading strategy. Price action trading implies minutely studying indicators and charts concerning currencies under focus to better impact the trade. So, for example, the part-time trader may analyse up bars and take note of down bars.
While up bars point out an uptrend, down bars pinpoint a downtrend. Still, other price action indicators may be located inside/outside bars. The chart timeframe that is best compatible with your schedule can bring you the most benefit.
Forex Strategies for Part-Time Traders: miscellaneous
The following strategies might well serve the part-time trader:
- Hold for days after taking fewer positions - it is vital that you are clear-eyed about your currency pairs’ drivers and have taken the time and made an effort to make sense of your market. Once you are done selecting FX pairs, you can just identify a handful of positions and decide to hold them longer. You could also put in stop-loss orders with all your trades to pare down the number of losses when there’s a market moves against you ;
- Examine long-term trends -it’s worth looking at longer-term trends rather than looking at hourly or even four-hour charts. Thus you can trade even as you take a gander at the computer just once daily;
- Set up trading orders - setting stop-loss, limit, or other entry/exit orders may guarantee that you step out of the way of opportunities to enter/exit positions. These orders are there for the taking at most trading platforms - free of charge. ;
- Use technology - set up alerts to your phone/email to keep you informed of currency price movements even as you are not actively trading.
- Your trade Journal and the EOD - your trade Journal will keep you apprised of the take-aways from your experiences thus far and be a constant reminder that you learnt XYZ tidbit in such-and-such situations. Reviewing the Journal’s contents periodically will keep the learning reinforced. Moreover, the trade Journal will lend a systematic feel to your trading. Not least important, jotting down your EOD or end-of-day results each trading day will remind you each time you take a gander that there’s some distance still to your goals.
More at: FXreviewtrading.com
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