Combining Forex and main job

The market where foreign currencies are exchanged attracts ambitious people. They crave for showing their skills amid intense competition and are sure of immediate profits. Optimism always favors any start, but you should not forget about preparation. It is impossible to become an outstanding, successful trader instantly. Finance is a serious topic requiring a cautious approach. To become a truly professional trader, you should make plenty of efforts.

First of all, you should sacrifice your personal time to study the theory and practice of working on Forex. A change in usual routine disturbs potential traders, but then, considering all pros and cons, they soak in the world of numbers. This article explains how an average person can perform part-time trading in the financial market.

The main problem that part-time traders face is missing opportunities due to a changeable market nature. For example, a position not closed on time may cause huge losses, and a wasted chance or deal opening at unfavorable prices may lead to small profits. Both these situations may have negative consequences for periodic trading.

Night trading might be recommended in this case. Traders can perform transactions on currency instruments that have high trading volumes during night hours, such as AUD/JPY or NZD/JPY. Deciding on a financial instrument, you should determine correlation between the currencies during a day.

There is a series of strategies that suit part-time traders. Let’s look at them closer.

Technical trading

This trading method will suit you in case you open a trading platform once a day for about ten minutes. What does technical trading look like? This strategy means you make a well-thought-out decision based on analyses of current price charts and technical indicators.

Suppose, a trader is able to analyze a place of a current candle in relation to the previous one. When highs and lows of a current candle are above those of the previous one, it may signal an uptrend formation, and vice versa. Besides, it will be sensible to take technical indicators into account. Success of this strategy lies in the right choice of technical indicators for a particular time period.

Stop Loss

If you are limited by time, your personal computer will become your main assistant. The forex market is quite changeable and inability to track its movements constantly may cause heavy losses. To avoid such a situation and protect your open deals from losses, use automated trading and Stop Losses.

Other strategies

You can achieve great results in periodic trading with the help of the following rules:

  • Limit your deal count. Open more mid-term positions and do it only after carrying out market analyses and deciding on particular currency pairs. It is vital to understand factors that may put the chosen currency pair under pressure. Always place Stop Losses to prevent wasting of your funds.
  • Choose long-term trends. Determine a trend based on a daily or weekly chart instead of an hourly and 4-hour chart. It will enable you to enter Forex only once a day.
  • Place pending orders. Putting pending orders as well as Take Profit and Stop Loss will help you benefit from trading opportunities to the full. Many trading platforms do not charge any extra commissions for these orders.
  • Do not ignore latest technologies. Install notification services to your mobile phone or computer and receive latest forex news.

As for a broker, it depends on every part-time trader what company to choose. Read feedback and look through ratings to decide on a brokerage company. Carefully study the history of the broker you want to trade with, test it and find out all the details.

Part-time trading requires high accuracy and confidence as you cannot afford pauses caused by platform malfunctions. Remember that part-time trading will be successful only in case you take your new activity seriously and study everything from A to Z.

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