It is rare to find people who are available on full time to do forex trading. Most traders make their trade during lunch time, at work or at night, finding out that, with a market which is fluid, to trade sporadically throughout a day’s small portion might end up to create a lot of opportunities which are missed out to sell or buy. The missed opportunities might spell disaster for the time trader.
Even with the missed opportunities risks, there are various strategies which can work based on a schedule that is part time. For example, the people that trade at night might end up getting limited to the types of currencies they trade based on the type of volumes experienced during the cycle of the 24 hours. The night traders according to forex brokers in South Africa, are required to employ a strategy of trading which is currency pairs specific which mostly are active at night.
An example might have to trade using the Australian dollar, the AUD versus the Japanese yen, the JPY pair. Or going for the NZD – New Zealand dollar versus the JPY or the AUD pair. It is necessary to ensure that you analyze the correlation that exists between the currencies while choosing a particular pair, as having the time during the day in studying the market and being able to implement the trades might lead to a strategy that is successful.
The main problem arises with the part time trader which is the time constraints. The following are some of the strategies for being able to trade on part time when you have a schedule that is inconsistent.
Know the forex markets you are trading with
If you are in the US and you work from nine to five, you need to trade after or before work. The best strategy for trading in such time blocks is in having to pick the currency that is most active as a pair. Get the ones which have the most price action. To know the times which the major currency is able to Private personal loan market are open will ensure that you choose the right major pair.
The markets in Europe and Japan are known to open between 2 am and 11 am in a full swing and thus, as a part time trader, you can choose a major pair of currency. It includes the pair of EUR/JPY or the pair of EUR/CHF for major currencies or a pair which involves the HKD – Hong Kong dollar or the SGD – the Singapore dollar.
The pair of AUD/JPY might also be able to work well for traders doing part time trade, available between 5 pm to midnight. While it might be crucial to be able to understand the pairs of currency which are best for the type of schedule which you have, before you place any bet, you have to conduct extra analysis on the pairs and the fundamental that each currency happen to have.
Stop loss orders in the forex trading
One of the strategies that might be good when it comes to trading forex part time might be your computer being your trading partner. The ability of being able to employ a program for trading where you can be able to allow the information technology working for you could be quite beneficial as the market of forex is one that is quite fluid and thus, hard to monitor. Another strategy which is common to implement the stop loss orders, meaning that in case the market takes a sudden move against your position, your money has to be protected.
Price action in forex
There happens to be a strategy for traders who are part time who normally pop in and out of their work at about 10 minutes each time. The brief yet frequent trading periods might lend themselves to implement a price action for strategy trading. The price action trading denotes analyzing the charts or technical of the pair of currency to inform trades. The traders can analyze up the bars – a bar having higher low or high than what the previous bar had, and looking at the down bars – referring to the bars which have a low high or lower than the previous one.
The up bars normally are known to signal an uptrend while the down bars are believed to signal the down trend, while the other indictors of action might be outside or inside of the bars. The road to success with such a strategy is having to trade off a chart timeframe which best meets your schedule.
Other forex trading strategies
The strategies might also be able to serve you great while you perform your part-time trading in forex:
Take few positions and ensure to hold them for several days
It is important that you understand the currency pairs drives and have to take your time to understand the market that you are trading in. Thus, after you study the market and narrow down certain chosen pairs of currency, select some few positions and hold them for a long period as it is a good strategy if you are a part-time trader. Another strategy which is wise is to place in stop-loss orders with trades to minimize any loss in case the market moves against you.
Look at the trends which are long term
There happens to be value in being able to look at the trends that happens in the long term like daily against weekly instead of having to look at the hourly or four hour charts. It is one which allows you to be able to trade while having to look at your computer once daily.
Setting up trading orders
Setting stop-loss, limit or other exit/entry orders might ensure you don’t miss the opportunities in entering and exiting positions. Majority of the trading platforms do allow for such orders with no extra fees.
Set up alerts which are automated to your mobile phone or to your email in keeping you well informed of the price movements of the currency while you are not trading actively.