How To Trade Forex With a Full Time Job
Not every individual has the ability to trade Forex full time. Several individuals wish to trade Forex, but cannot constantly trade forex. However, there are a lot of part-time Forex traders. Being a part-time Forex trader can be a difficult task, juggling between work and having to place and monitor trades. Per-time trading means traders will not be able to take full advantage of the market movements. This is because per-time traders are limited to trading at specific times. This is because they work during the day.
Taking advantage of the market during working hours could be difficult, and some jobs require absolute attention without any form of distraction. Most per-time traders end up giving up on their trading careers because of a lack of time and market strategies. In this article, we will focus on the best strategies for Forex traders with day Jobs.
There are a lot of good strategies that can suit a per-time trader schedule. For instance, traders who are more active at night can focus on currencies that have larger volumes based on the 24-hour Forex trading hours. Focusing on forex strategies that beat works at a time when you are free is the best thing to do.
STRATEGIES FOR FOREX TRADERS WITH DAY JOB
There are numerous strategies that suit the schedule of a per-time trader. They include:
- Familiarize yourself with the Forex Markets
- Make use of Stop-loss orders in Forex trades
- Using Price Action in Forex
- Setting up an automated trading system
- Find the right Forex pairs to Trade
Familiarize yourself with the Forex Markets
In an office setting where you have to work 6 to 9 hours a day. The only time left to trade is after work hours, this means you need to look out for forex pairs with most price action during those trading hours. The ability to detect when the major Forex market opens and closes is a first step to selecting the major forex pairs.
The London Forex market opens at 3:00 am and closes at 12:00 EST.
The New York Forex market opens at 8:00 am and closes at 5:00 pm EST
The Tokyo Forex market Opens at 7:00 pm and closes at 4:00 am EST
The Sydney Forex market opens at 5:00 Pm and closes by 2:00 am.
The Forex markets available in Europe and Japan (open at 2:00 am and close at 11:00 am) seem the most active giving part time traders the advantage of choosing major currency pairs. Part time traders will have access to major currencies such as the EUR/CHF or the EUR/JPY pairs. They should also look out for currency pairs that have the Hong Kong dollar (HKD) or Singapore dollar (SGD).
The Australian dollars and Japanese yen pair is also a good currency pair for part time traders as the pair is tradable from 5 p.m. to 12-midnight timeframe. It’s is very important to familiarize yourself with the best currency pairs that fit your trading schedule. Additionally, every intending trader must conduct deep research and analysis about the pairs being traded and also do a thorough fundamental analysis about each currency.
Make use of Stop-loss orders in Forex trades
This is one of the best trading strategies for traders with a days job. This strategy allows a computer of a trading program to assist a trader in closing a trade after execution. The use of stop loss orders assists traders to reduce the loss of funds during a trade. Most times full-time traders constantly monitor their trades and adjust prices as the trade goes on.
With a set stop loss you don’t have to be worried about losing all your funds. This is because a stop loss order given to the broker tells the broker the exact time at which to close the open trades. So in a case where a part-time trader closes from work, he or she can comfortably open a trade and set a stop loss, thereby, securing his or her funds.
Price Action in Forex
This is another good strategy for a forex trader with a day’s job. This strategy entails a trader checking the price chart of an asset periodically to look for trade opportunities. This means a trader is required to analyze the technicals or price charts of the forex pairs. Traders can monitor the up bars which are the bars with a higher high or a higher low compared to the initial bar. They can as well analyze the down bars which is the bar with a lower high or lower low compared to the previous bar.
An up bar indicates an uptrend, and a down bar indicates a downtrend. There are still other price actions techniques that can be used. The major way to succeed in this strategy is to ensure that you work with a chart time frame that suits your work schedule.
SETTING UP AN AUTOMATED TRADING SYSTEM
This is one of the best trading strategies for forex traders with a day’s job. This strategy entails the use of automated trading systems to open and close trades. They are used by traders who do not want to go through the stress of constantly having to monitor and survey their open trades. The trade is opened by an automated trading platform based on the predetermined parameters set by the trader. This is the best trading strategy for forex traders with a day job because it enables them to take full advantage of the Forex market without having to be fully present.
There are some automated Forex trading platforms that even provide trade signals for traders, this means the automatic trading platform will not only trade on your behalf but also choose good profitable trades based on the fundamental or technical analysis used. There are different types of automated trading platforms available, thanks to the advanced online trading industry, having access to an automated trading platform has been made easier.
FIND THE RIGHT FOREX PAIRS TO TRADE
It is important to pick the best Forex pairs that are more profitable during those specific trading hours. There are three major forex pairs, the Major pairs, Exotic pairs, and Cross pairs. Most traders prefer to trade the Minor pairs because of their level of liquidity. However, the other Forex pairs are profitable but a lot more tactical. It’s is advisable to trade with the Major pairs because they have more liquidity, and as a part time trader there won’t be enough time to monitor the exotic pairs or cross pairs.
The Major pairs to trade are:
MAKE USE OF COPYTRADING
Copytrading is another good trading strategy for forex traders with a days job. Copytrading is the ability of a forex trader to automatically copy the trade of a professional trader. The copied trade is made available through a trading platform or a website. The copied trade is tested and trusted trade parameters that have proven to be successful over time. The good thing about copying a trade is that you don’t have to spend time looking out for trade signals through the use of technical or fundamental analysis.
Copytraders are automatic and don’t require constant monitoring. Their numerous websites, trading platforms, and online forex brokers provide their users with a copytrade system. Just ensure to sign up with a good broker that suits your trading plan as a part-time trader. Also, make sure to track the performance of the professional trader that has the trade being copied.
HOW TO TRADE FOREX WITH A FULL TIME JOB SUCCESSFULLY
As a trader with a day job, it’s already a loss that you will lack the ability to fully take advantage of all the market price swings. It is important to ensure that the little time you spend online trading comes out successful, the number of your lost trades should be lesser than the number of your successful trades. Achieving this can be difficult especially if you do not have enough time to comb through the market and ensure that all conditions are met before opening any positions. There are various steps and procedures that should be taken ln to ensure profitability in trades even as a part time trader. They include:
- Perform good market research
It is important to perform good and thorough market research before going into a trade. Thorough market research helps traders to pick the right currency pairs, trading volume, and other vital elements that affect the profitability of the trade. Ensure that technical analysis and fundamental analysis are employed in all your trades.
- Know the level of your trading skills
This is another important rule to adhere to, as a part time trader, it is important to know your trading capabilities as that will set the tempo of your trades. Do not try to trade like a professional if you are not yet a professional trader, ensure to trade within your comfort zone. Do not over trade or under trade.
- Set your risk level
Enure to set the minimum and maximum risk you are willing to take in a trade. Do not trade with all your savings. It is advisable to trade with your spare money, however, we all know it is difficult to lose money no matter little z this is why it is advisable to trade with the amount that won’t be much of a bother in a case where your trade goes the opposite direction.
- Be Mentally prepared
Your mental state has to be balanced before opening any position. This is because when trading with a distressed mind it is difficult to come up with good trading decisions. But in a case where the trader’s mind is at rest, he or she will be able to make good trading decisions. Also, an unbalanced mental state is bound to affect the profitability of a trade. Making decisions abruptly or making trade decisions based on emotions such as fear or greed is not advisable.
- Prepare for your trades
Write out your Trading points, note points such as your entry and exit points, the level of support and resistance. Additionally, lay out plans that could help you potentially in case of an unfavorable price swing.
- Set trading goals
Be self-disciplined and set the highest amount of trades you are allowed to lose. Set your profit targets and your limited loss. Keep to it and remain on track. Use stop loss to ensure that you do not exceed the fixed amount of loss set.
- Keep a journal to track your trade records
Keep a trading journal to help track the outcome of your trades. Keep a good track record of all your winning and losing trades. This helps you look back and check out for mistakes and learn from past mistakes. It also helps you to sharpen your trading skills and improve accordingly.
- Fix a an adequate Stop-loss and take profits
This is the most important part of a trade. To ensure proper risk management, setting an adequate Stop-loss and profit target is required. Stop loss helps traders to minimize losses in a case where trades do not go according to plan. Profit targets also help traders to minimize losses in the sense that when an adequate profit target is reached, the position is automatically closed. In a case, where a trader open a trade position without an adequate profit target set, the price could reverse after the trade has been overbought thereby making the trader lose previous profits.
Becoming a successful part time Forex trader is possible. However, a part time trader must endeavor to follow the rules that apply to becoming a successful trader. Also, there are other numerous profitable forex trading strategies that suit a forex trader with a days job, choose the one that best suits your trading plan and trade accordingly. However, achieving profitability in trades is not always a guarantee. This is because the forex market is an unpredictable marketplace, and profits are not always guaranteed.