The Forex market is considered to be a fascinating and unique place for making a profit. This market is primarily good because absolutely every person who wants it can earn on it. Of course, it is silly to write that it will be very easy to make money on the market. No, in order to trade successfully, you will need to spend a lot of time learning trading, to practice.
Forex becomes a very attractive market precisely because it has a degree of flexibility as it has its work schedule. It works round the clock for 5 days a week. And since the market operates around the clock, you can make transactions at any time of the day.
And therefore, you can trade in the Forex market as a full-time or a part-time trader. You can trade short-term, but long-term as well. But we want to note that the trader who works part-time, must understand the whole technical approach, and also must have a high level of discipline.
So how to trade on Forex part-time?
Choose time to trade
First, you need to decide when you will trade. Ask yourself a simple question: “When do I have free time”? Think of trading as a job that is done in a period clearly set aside for that. Say, “I trade from 9 to 11 p.m.” This is your trading time. Now do everything so that at this time no one bothers you. Finish all your business before this trading period. Trade exactly at this time. Persistence is the key to success. If you trade from time to time, jumping on the charts, “when there is a free minute,” then you’ll just lose the deposit.
Adjust to your chosen time
An amateur trader has little time. Not all financial markets are open when we are ready to trade. But this is not a problem – you just need to adapt.
Select 1-2 favourite assets, say, EUR/USD and USD/CAD. Wrap the chart farther back and look at the stories, which behaviour, on average, your asset showed at the chosen time. You will immediately find a lot of interesting patterns that you can use. Another option is to sort through 10-20 assets at once in search of those that will show the behaviour you need during these two hours.
Set Stop Loss and Take Profit
You must limit not only losses but income as well. Let’s say a newbie can set himself the task of increasing the deposit per day by 1-5%. If you achieve this – immediately stop trading, that’s enough. Don’t think that it’s too poor. 1% of income per day is 5% of income per week or 22% of income per month. Even 1% per day is a great stable result.
The limit should be not only for profits but also for losses. Do not rely on luck in trading, cause such a scenario reminds a casino. Set a limit of losses, and when it is exceeded – stop trading.
This is a psychological risk management, and its non-fulfilment will lead to very undesirable consequences. If yesterday was a bad day, do not try to win back everything the next day. Remember what your profit limit is. Reach 5-10-20% of profit, and that’s all, stop. Even if you have 5 unsuccessful days in a row, work according to the plan, this is the only thing that will save you and slow down the decrease in the deposit.
At the end of the month, summarise the results for your income and losses. And adapt your trading plan according to them. For example, if the goals for the month are reached, some traders allow themselves to lose a couple of percents more. This increases their turnover, as well as the chances to recover from losses.
Stick to a trading plan
Strictly stick to the plan. And do not constantly change it until you have collected enough statistics. Typically, trading plans change dramatically only once every few months. But if you are not sure in some trading strategy, then first try it out on a demo account.
If you have decided to trade from 9 to 11, do not sit when this time is over. No matter what the market shows you there, you can (and will) be self-deceived about this, and you will always feel that now is the best moment in your life to earn all the profits.
Therefore, think of everything and do not hurry. Markets will not run away; traders run around them like mad hamsters. Calm down, distribute everything in its place and watch how positively this will affect the results.