Tips for part-time forex traders
Since forex is a 24-hour market, trading can be done part-time on top of a full-time job. However, it is also important to be psychologically prepared for this trading approach as it requires some lifestyle considerations and adjustments. Without making these, you might be setting yourself up to fail and letting the frustration take its toll on your mindset.
First, consider how much time you can spend trading. If you have a full-time job that has a regular schedule, then you can set your trading hours before or after work. It is not recommended that you trade while you are working since this will lead to concentration issues, aside from being unethical and irresponsible.
Instead, make sure you set a trading schedule and you stick to it. By having a pre-defined time of when you will look at the charts and execute trades, you can also adapt your trading strategy to it. If you are able to trade during session overlaps, then you could focus on day trades that can be entered and exited in a short span of time and with more potential for volatility. If your trading schedule happens to fall on periods of lower volatility such as the middle of the Asian trading session, then you might want to consider taking longer-term setups that can be kept open for a long while and monitored every now and then.
Second, make sure you are able to maximize your trading hours. Since you have a limited time to spend on watching the markets, you shouldn’t stay idle when you can’t spot a trade setup. You can use this time to read more on the market happenings or to expand your trading skill set. You can also broaden your horizons and look into currency pairs that you don’t normally trade to see if there are profit opportunities there as well.
Third, learn how to prioritize. Again, with a limited amount of time spent watching the markets and taking trades, you should be able to determine which tasks need more of your attention. You can come up with a simple schedule to stick to in order to ensure that all bases are covered.
For instance, you can start your trading time by spending a few minutes on research and fundamental analysis. During this time, you can check out the economic calendar to mark the upcoming reports that you can trade and potential event risks to your open trade. After that, you can spend time browsing through the forex charts to spot any technical setups that are aligned with your fundamental biases. Don’t forget to allot a few minutes to trade journaling since these notes will definitely come in handy later on as you review your trades.
Lastly, build on what you’ve learned by thinking of ways to improve. Forex trading is a never-ending learning experience, as the market environment often shifts. You should be able to have a trading strategy that can adapt to these changes or at least a mindset that can be flexible to dynamic market factors. Make sure that you review the trading psychology lessons you’ve learned throughout your experience and make mental notes on the things you need to remember and work on while trading.
Next Article: Are you ready to be a full-time trader?