Does making good money with Forex trading mean that you need to be glued to the monitor watching every market move? No, not necessarily because being successful with Forex trading takes more than having the “blink and you miss it” approach. With the right tools and strategies, you can still make money from Forex.
There is a lot of buzz about how you can quit your 9-to-5 job and start trading forex as a full-time job because it is a get-rich-quick method. But what if you don’t want to quit your job? Or what if you can’t do it because you are still a novice trader and don’t want to get ahead of yourself? Sometimes, there are just too many “what ifs” that can’t allow you to become a full-time Forex trader. Yet, make no mistake, even as a part-time trader, you can still make good money with discipline and the right tools and strategies. Here’s how:
Find the trading style that suits your schedule
First things first, as a part-time trader, you know that all your trading activity comes down to is your schedule. If you, for example, have a 9-to-5 job, it’s obvious that your schedule only allows you to trade later in the evenings. So, the first step into becoming a part-time trader is to figure out exactly how flexible your schedule is.
Next, once you have a clear idea of your weekly schedule, you need to decide on that trading style that fits that specific schedule. Most part-time traders usually go for one of these two trading styles: swing-trading and day-trading.
If you have limited time and access to charts during the day because you may be at work, you can go for swing-trading because it allows you to do chart analyses during the weekends or before or after you go to work.
On the other hand, if you can commit to trading for a few hours during the day after work, you can go for day-trading because for sure you will find some active currency markets at all times.
Know when the market is active
Although the “blink and miss it” approach is a little bit too dramatic, it is true that the more market moves you watch, the more accurate your analysis on assessing risks and trends will be. Now, trouble is, the Forex market never sleeps, or, for at least 24/5 a week, there is a lot of activity happening on the market. So, as a part-time Forex trader, you are very likely to miss those moves when you are not in front of the monitor.
Now, here’s the good news: as technology has evolved, it is now easier than ever to be a part-time trader because you don’t have to have your eyes on the market all the time.
How is that possible? If you are a novice to trading Forex, let us introduce Forex signals to you. Forex signals are the suggestions, from either a human analyst or an automated Forex robot, for you to enter a trade on a currency pair. If you work with a reliable provider that gives you accurate forex signals, you will be able to capture more profitable trades.
Maximize your trading time
Well, obviously, the biggest challenge for part-time traders is time. You may only have just a couple of hours to commit to trading every day, which, like it or not, can severely limit your trading options. So, it is crucial that you use every single minute you have to allocate to trading properly.
Trading doesn’t only include the actual trading activity but also other core tasks including reviewing charts, doing back testing, and journaling. So, make sure you have a trading strategy that helps you get done these core tasks pretty fast so that you can focus entirely on trading.
Do your homework
It should go without saying that if you want to improve your trading skills you need to educate yourself on every new strategy and tool that can help you capture more profitable trades. Yet, for part-time traders, this is even more crucial to follow because of your limited time spend in front of the monitor.
Most likely, the very little time you get to commit to trading will be full of market shifting events and surprises. So, it is very unlikely that you will be able to study what is driving the market. So, before you sit in front of your computer and start trading, take a look at the latest Forex, economical or political news because these are all factors that can influence the Forex market. Also, you may want to educate yourself by reading forex books and following forex forums to map out different strategies and tools you can use in your trading activity.
Have the right mindset
Trading with the right mindset is a rule that can easily apply to any kind of trader, be it full-time or part-time traders. Yet, once again, time becomes the biggest challenge when it comes to having the right mindset for part-time traders. Why? Mostly because you feel pressured.
When you only have a couple of hours to do all your trading work, you may be experiencing a lot of pressure. And, make no mistake, stress and making good financial decisions don’t go well together. Plus, after an 8-hour workday, you may feel exhausted, which, once again, makes it essential to remind you that tiredness or a clouded mind can’t help you make profitable trading decisions.
So, what can you do? Start by practicing patience and discipline by not trading when you are not able to focus fully on what’s happening on the market. Just because you have finished work, it doesn’t mean that you must run home and place yourself in front of the computer because you have been sweating all day long thinking that you might miss the big moves. Give yourself some time to clear your mind and only start trading when you think that you can focus entirely on what the market and the charts are showing you.
Having a 9-to-5 job and becoming a professional trader in your free time can be quite a big challenge. Yet, with good planning, discipline, the right tools and strategies, and the right mindset, you will soon realize how easy and profitable part-time Forex trading can be.