The forex market is one of the most liquid and active markets in the world. As all transactions are operationalized through OTC (over-the-counter), the market is open 24 hours a day, five days a week. The dynamic nature of the market makes it difficult for part time traders.
Traders of forex are not necessarily full-time dedicated professionals. A significant number of part-time traders make their trades at work, during lunch break, or at night. In this sense, the time of trading is relatively short. For many of these traders, many opportunities to buy or sell are viewed as lost. Besides, such missed opportunities might lead to real disaster scenarios we prefer to avoid. This article lists specific strategies to overcome time constraints and further problems related to this time constraint.
First of all, it is essential to pick the most active currency pairs. In other words, choose the currencies with the most price action. Also, the opening times of the major currency markets are worth knowing while choosing the major pairs. Assuming many part-time traders work between nine to five or six in their respective countries, the most suitable time for trading would be after and before work. It is recommended that traders focus on the markets that are in full swing when they pair currencies. For instance, a trader from the US might concentrate on EUR/JPY as the active time of both markets is compatible with the traders’ work schedule.
The second vital point is about the familiarity of information technology. Spend time to employ a trading program. Gaining such an ability is very beneficial to traders. One of the popular ways to avoid loss is to implement a stop-loss order. By doing so, traders will limit their loss and protect their money against continuing price change in the market.
Suppose you are a part time trader who can trade within a period split into 10 minutes. In that case, the best strategy is to follow a price action trading. Price action refers to the analysis of the technicals and charts of the currency pairs. In these charts, there are up bars signaling up trends and down bars meaning down movements. Find the best chart time frame for your schedule.
Moreover, there are various small steps to follow on the way to success. Briefly, traders must comprehend the drivers of their currency pairs and invest in discovering the market of interest. Consequently, part time traders are encouraged to select a few positions and hold them for a more extended period. Thus, as traders, try to evaluate long-term trends, such as days or weeks compared to hours. That will turn your weakness (time constraint) into a strength.
Furthermore, set up trading orders on your platform. Above mentioned stop-loss or other entry/exit orders is a great assistant to secure your money and catch up with the opportunities. Finally, cooperate with technology to remain updated.
All these advice sets might seem like much pre-research but remember, such pain will ensure your gain! It is always better to have a strategy and take advantage of the trade rather than complain about the missed opportunities and time constraints.Share this article