On the surface, forex trading is a complicated activity that requires a lot of attention and knowledge to make money from. However, as technology has advanced and the world of currency exchange and financial markets has evolved, a place for part-time forex traders has emerged. For anyone willing to spend a bit of time and effort learning the practice, it is a feasible way to make money as a part-time endeavour by acknowledging the following steps.
Choose the Right Pair(s)
Forex trading is all about exchanging currencies to make a profit, buying one currency when it is low in value and then selling when it has grown or before you believe it will drop in price. The forex market is the largest, most liquid in the world, with a daily volume of just under $5 trillion, meaning there is plenty of choice of currency pairs to trade. With limited time as a part-time trader it is best to stick with the major pairs, trading the US dollar, British pound or euro with each other or the Japanese yen, Swiss franc and Canadian/Australian dollar.
Pick an Appropriate Strategy
There are also thousands of different trading strategies out there, each one claiming to be the best. As a part-time trader, you need to find one that suits your trading times, goals, chosen currency pairs and any other circumstances. Be aware of the forex market hours so that if you’re trading before or after full-time work, you’ve got a strategy that suits the currency and popular activity of those times. Both long and short-term trading strategies can work even if you’re only trading forex part-time.
Use a Reliable Platform
Technology has helped make forex trading a viable part-time career that you can fit around a full-time job. The majority of trading platforms include mobile and tablet apps, whereby your account is linked from the desktop version so you can trade on the move. This makes it easy to trade whenever you have time and wherever you are, meaning you can buy and sell currency as soon as there are changes in the market.
Automate Where Possible
If you have a busy schedule, then automating as much trading as possible is a great time-saving method which still lets you retain the majority of control. There are automated trading programs available, or you can simply plan ahead and place trades to enter and exit when certain currencies reach set values, to prevent large losses or losing from a winning position.
Uses these pointers and you should be able to begin profiting from a part-time forex career.