Forex Trading Advice for Part Time Forex Traders
The most appealing feature of Forex trading is that it is 24 hour open market. You can trade 24 hours a day and at the same time, you can also set your own trade schedule as well. Most of the traders nowadays are trading according to their set schedule such as day time or night time or whatever time they feel comfortable with. Such traders are called Part-Time traders. Obviously if you trade for only a specific time of the day, you are bound to miss some profitable trading opportunities. Thus time constraint is the major issue for Part-Time traders.
But there are many strategies that the part-time trader can use to earn handsome profit. For example if you trade at night, then you should use the strategy of Forex trading those currency pairs that remain mostly active at the time of night. Some major strategies that are helpful for Part-Time traders are:
Timing of Market Opening:
As a part-time trader, you should observe the timing of the market opening of major currencies, it will help you to select which currency pair you want to trade.
The Forex market in Europe and Japan are mostly active at night so you should any one of the following currency pairs.
You can also select currency pair that includes Hong Kong dollar (HKD) or Singapore dollar (SGD).
It is the most widely used strategy by the part-time traders. It is a risk management technique that protects the money of the trader in case of a sudden change against of his position.
Price Action Trading Strategy:
There are some part-time traders that trade with frequent intervals during trade such as 10-20 minutes etc. In such a case, you can employ Price Action trading strategy. This strategy analyzes the movement and charts of your currency pair. It can inform you the up bars and down bars related to your currency pair. Up bar reflects an uptrend while the down bar reflects the down trends.
Holding for days:
A prudent technique and strategy employed by part-time traders is holding a position for long duration. You study and analyze the Forex market. Then you can select certain positions and just hold it for days.
There are many strategies that you can use in Forex Trading. You can select the strategy according to your risk aversion ability. You have to keep it in mind that what works for other is not necessarily going to work for you as well. What is Forex? It can be explained as exploring new strategies. It can help you to understand your strengths as well.