The idea of becoming a full-time forex trader surely has crossed your mind already. You’re thinking of freeing yourself from the same chaotic commute to sitting at the same boring desk cubicle and listening to the same boss telling you all the things you need to all day.
You’re thinking of freeing yourself from a confined salary that has zero prospects of growing higher and you want to afford the unlimited bills from our costly lifestyles. However, becoming a full-time forex trader is not everyone’s cup of tea and you might be surprised to learn that part-time forex traders can also make just as much money as their full-time equivalents.
If you’re here to know whether it’s a good idea to make forex trading a full-time job or you want to trade with a full-time job, we’re going to share with you some core guidelines that can help you out!
Know Your Trading Style
The very first important thing you must keep in mind if you want to trade forex trading with a full-time job is determining the right trading style. You want to make sure that the trading style would ideally fit your schedule and personality. There are two major trading styles you can choose from depending on your personality and schedule – swing trading and day trading.
The first style, swing trading, will necessitate less time as compared to day trading. Day trading is a type of strategy that requires the trader to spend many hours sitting in front of the computer. This only means that swing trading is suitable for those traders who have limited time and access to check the charts during the day.
The great thing about swing trading is that you won’t be pressured of closing the position before the day ends. If the day forex trader is not able to hold the position at night, the trader needs to close the position before the day ends. This simply means that you must figure out which trading style is suitable for your personality and schedule. Once you consider that, you can identify whether you want to proceed with day trading or swing trading.
Set Up Your Charts During the Weekend
If you plan your charts beforehand, for instance, during the weekend, you don’t have to waste so much time charting and analysing during the trading week. All you need to do is to watch and wait for the price to move to your entry before you execute. You may also perform all your analysis around your job, particularly if you only need to trade part-time. If you are working days, you must do all your analysis at night. If you work nights, then do the opposite.
You may also conduct your research before or after work, whichever is the mode ideal for you. Another alternative is to work out potential trading game plans outside market hours.
Make Trades During the Best Forex Market Hours
This means that you should trade during sessions with very high liquidity which is normally during the New York and London sessions. Market liquidity is highest during the London session as nearly all multinational banks have branches in the city. In these moments, the spread is lessened and you can earn profit from high volume market movements.
Moreover, another strategy you can do is to trade at times when your currency pair is most active. If you like to trade the EUR/USD pair, for instance, give some time for trading from 8:00 a.m. to about 11:00 a.m. EST from 1:00 a.m. to 8:00 a.m EST. Why? A lot of movements for this currency pair occur during these times or around several hours after the US stock market opens.
Learn how and when you can catch the best price movement for specific currency pairs and then plan your schedule accordingly.
Utilize the Right Trading Strategy Depending on Your Schedule
If you are only able to spare 30 minutes to one hour in the middle of work, you may want to use intra-day or swing trading strategies so you won’t need to stare at the charts for a good piece of your day. If you don’t have any problem doing this, however, scalping is a better strategy you can use. This is particularly true if you are more into fast-paced trading.
Commonly, day traders spend one to three hours to trade and you can do the same thing too. However, you won’t need to take that long when you have the right forex trading strategies.
Consistency is Crucial
In forex trading, you need to be consistent. If you want to reap wonderful rewards in forex, practice and consistency is very important. When you have these, you will develop your skills and learn more high-earning strategies. This is why it’s not recommended to switch strategies often. Here’s what consistency means in forex:
- Regularly trading on a part-time basis using the same schedule.
- Trading utilizing the same setup and technique even when you lose during a close.
- Following a set of rules and guidelines without a fail.