To be successful with online forex trading, you need to employ the right strategy at the right time. That’s not always easy, particularly if you’re not a full-time trader.
But others have managed to find success by using certain strategies and trading part-time. The key is being consistent with when you trade.
Find a Time to Trade
The first and most important thing is to find a consistent time to trade. That means getting to know your markets. Once you know what times the major currency markets are open, you can better choose major pairs that you can trade on a regular basis.
For your reference:
- London: opens at 3AM and closes at 12PM EST
- Tokyo: opens at 7PM and closes at 4AM EST
- Sydney: opens at 5PM and closes at 2AM EST
- New York: opens at 8AM and closes at 5PM EST
Practice Makes Perfect
If you can’t trade full-time and you’re still not sure you’ve got the hang of forex trading, demo trading can help you gain the confidence and experience you need to transition to live trading.
If you have no interest in using a demo account, you can watch a forex trading tutorial on YouTube to learn more about strategies and the logistics of the market. You can find Opteck on YouTube as well as many other platforms, which offer helpful educational videos.
Use Price Action
If you only have ten minutes here and there throughout the day, price action trading may be a better option for you.
In a nutshell, price action trading involves analyzing charts or the technical aspect of a currency pair, and making trades based on the chart.
Choose a chart time frame that matches your schedule to succeed with this type of trading.
For traders who only have a limited amount of time for trading, stop-loss orders may be the best strategy. The forex market is incredibly fluid, and if you’re not able to watch the market throughout the day, you can use technology to your advantage.
Another strategy is to use stop-loss orders to protect yourself from major losses. If the market takes a sudden turn against you, your money will be protected.
Part of what makes forex trading so attractive is the fact that it’s a 24-hour market that is constantly in flux. That means you have plenty of opportunity to make profits throughout the day. But this same attractive feature is what makes part-time trading so tricky. These tips can help you overcome this caveat of forex and (hopefully) start making successful trades.