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Part Time Forex Traders Can Profit From These Key Tips

One of the attractions of the forex market is that it is a great opportunity for part-time traders to make a steady secondary income. Full time employees can develop another revenue stream as becoming a part time forex trader is relatively easy and only requires one to spend an hour or two per day after work.

Becoming a part-time forex trader is easy but being successful at this new venture can be difficult.

To help those who want to get into part-time forex trading, here are a few tips that will help you come out on top.

Match Trading Times To The Market

The first thing that part-time traders have to realize is that the forex market operates 24 hours. This means that if they want to trade in a particular zone or are targeting a specific currency, then it would be best for them if they chose a currency pairing that was active.

For example, the Frankfurt exchange opens 06:00 GMT, followed shortly by London at 07:00. New York opens 12:00, while Sydney opens 22:00 and Tokyo at 23:00. During their limited trading hours, traders should pick out pairs that they can work with. So if you are busy at work when the London Stock Exchange opens, it isn’t a great idea to target the Pound Sterling.

Picking The Right Strategy

Just like any other market, there are different strategies for trading. For part-time traders, there are some strategies that cannot be used. Part-time traders cannot focus on quick decisions and immediate results – they do not have the time to monitor the market like full time traders. They can't wait around for the price to fluctuate and try and make a quick profit.

This is why strategies like position provide them with a better advantage. Position is a strategy when traders wait for a forex pair to hit a particular price before they proceed with a decision.

Market Knowledge

Part-time forex traders might spend just an hour or two trading but they still need to study the market and get a lot more familiar with the field. A lot of traders just start winging it, thinking they are good enough to make a profit. While this might work out on a short term basis, the way to be consistent is to study and gain more market knowledge.

Keep Emotions Under Control

Part time traders should not make any decisions when they are emotionally volatile. Getting too excited or overconfident can result in a big loss on the market. To be successful at forex trading, part time traders need to use logic in their decision making and not emotions.

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