If you have a regular day job and can’t risk trading all day because of your personal obligations, you might want to try part-time day trading. Here are some cool tips you can use.
Specialize in ONE currency pair
As a part-time trader, your best bet is to specialize in one currency pair that you can trade when you are available. Ideally, this currency pair should be liquid at the time you are trading it, and should not require round-the-clock monitoring.
You can use an automated trading platform to do this, especially if you’re a newbie and still learning. It will help you avoid mistakes.
Aside from this, you can read below for other part-time forex trading tips.
Finding the Right Pair
The forex market works all day, 24 hours a week. But that doesn’t mean it’s liquid all the time. There are hours when trading volume is at its peak. If you’re not familiar with the term, “liquidity” refers to how easily you can buy and sell a position in a market. Basically, you have to choose a timeframe when liquidity isn’t a problem and you’re available to trade.
If you’re just starting out and you have a mini account, it’s best to choose the US dollar to trade with other currencies. It’s the most liquid currency and has the highest trading volume. Below are the currency pairs with the dollar that you can ideally trade.
According to experts, it’s best to trade the USD/EUR pair for part-time traders since this pair is very briskly traded and information about it is always available nearly any time in the market.
Meanwhile, experts warn part-time traders about the dangers of trading currency pairs that require more sophisticated knowledge. Such pairs are risky and are not suitable for all newbie traders.
Automated Trading Systems
Automated trading systems have been around for a while now and one can say that they’re a big help for forex traders, part-time or otherwise.
Although you can choose to trade on your own with the currency pair you want, automated trading systems have benefits that are difficult to pass up on. There are automated trading systems with a full spectrum of functions, such as monitoring currency prices in real time, placing different orders, and executing trades.
This so-called “set-and-forget” trading system allows you to remove emotions from trading, since the software will be making trading decisions based on a program. This provides beginners an easy way to get their forex trading careers on the road.
Discipline and Decision-Making
As mentioned above, automated trading systems are very beneficial for investors who want to remove emotion from the equation. It’s also very helpful in improving discipline in trading.
Part-time traders are better off taking profits when they materialize instead of just waiting to gain a little more profit. Of course, it’s easier said than done, as no one really likes leaving the party when they think it’s not yet over.
It requires heavy self-discipline. For those who don’t rely on automated programs in decision-making, exiting the trade when they already reach their profit targets and even when the trend is still on-going is a very tactical move. Trends can always reverse and bite the trader due to unforeseen events.