Strategy to Become a “Part-Time” Forex Trader
Not everyone can be a full-time trader . I just had an online discussion with George. He criticized my statement in an article entitled “Solution to Overcome 6 Causes of Trading Failure” that I made almost a year ago. There I say that one of the failures in forex trading is not focused and this usually affects most beginners, especially part-timers.
I do not “forbid” the part-time status of a trader. I also started my trading career from there. What I criticize is precisely the lack of focus in trading activities; one of them is when analyzing.
Focus is very important. Imagine if when you were busy doing the analysis, your child whined for the request to accompany Lego. If you then scold your child for being disturbed, then it will be a bad precedent for you as a father. Remember, you have worked all day and he needs your attention. Or, you haven’t become a father? Maybe your lover, or your wife, might ask for “more” attention. 🙂
In essence, I repeat: focus is very important to maintain the quality of the analysis that you do when trading.
There is no harm in being a part-time forex trader . There are several strategies that you can run. For example, you can only trade at night, maybe you can choose to do transactions in currency pairs that are more active at night.
Well, here I choose for you some of the many strategies that can be run by part-time forex traders .
Select Match Time
Talking about choosing time also means choosing a market. If you work from 9 am to 5 pm, it means you can trade before you go to the office or after returning from the office. I do not recommend that you trade when you work in an office, especially if your status is an ordinary employee, not a boss. Unless you are ready to face the risk that happens if your boss goes up in blood because work is not right because you are busy analyzing and monitoring trading positions. 🙂
Besides doing forex trading in the midst of routine activities in the office will certainly make you lose focus. Remember, as said above: focus is very important.
Adjust the free time you have with market active time. Usually, currencies are active when the market they are active. For example, AUD and NZD will usually be more active in New Zealand and Sydney market times. Yen will usually be more active when the Tokyo market opens, and so on. EUR and GBP will usually be more active when European and London markets open, while the New York market will affect USD activity.
This lists the active time of world financial markets:
When the Tokyo, Europe and UK markets are active, you can try to make EUR / JPY, EUR / GBP, or GBP / JPY transactions. When the New York market is active, you can choose a major currency pair such as EUR / USD, GBP / USD and other currency pairs that pair with USD.
But of course it’s not binding. This does not mean the currency above will not be active if the original market is not active. So, AUD could become active even though the market that was active at that time was the New York market, for example. Many factors can make a currency pair move very actively.
The more important point is to find the right time to make forex trading transactions and try to have significant price movements at that time.
For information, more significant price movements usually occur when European, London and New York markets open. If it is converted to West Indonesia Time, it occurs in the range between 2:00 a.m. and 9:00 p.m.Sometimes even significant movements occur until 10:00 p.m.
Fortunately we live in Indonesia, where we can still try to capture these opportunities even though they are part-time traders. A colleague of mine, a forex trader from New Mexico, United States, once said that Indonesian traders are very lucky because they can trade quietly when the market is very active, without having to be bothered by daily work routines.
Well, for that you can try to trade when you leave the office. But again, this is not binding. The important thing is you find the time to be able to trade without interruption so you can FOCUS.
Take advantage of Stop-Loss
As a part-timer , the time you have is certainly not as easy as full-time traders. You can only make transactions with a limited time. That limitation inevitably has to make you look for “colleagues” who can be trusted to keep the transactions you do. The most efficient “colleague” is actually your own computer.
How do you do it?
You certainly install MetaTrader on your computer, laptop or smartphone, right? Well, you can put up a stop-loss for every transaction you make. So when your trading time is up for that day, you can do other activities calmly because someone has anticipated the risk for you.
The use of smartphones is another thing. It can indeed help you trade wherever you are, of course as long as you are connected to the internet. But don’t misinterpret that you can be free to trade forexduring working hours because you feel it’s made easy by a smartphone .Trading is not only a matter of practicality but also – again – focus.
So, if you want to trade or monitor the market during important meetingsin the office, make sure you have the ability to share attention but can still have a high level of concentration for both things. If not, don’t.
Use Large Time Frames , “Intimate” Occasionally
Most part timers are not suitable to be a scalper . Again: mostly. There may be some part-timers who can exist as scalpers , but there aren’t many because scalping methods require higher concentrations than other methods. Therefore, a method that is suitable for part-timers is generally day trading .
For this reason, use a large time-frame to analyze. The smallest possible time-frame H1 (1 hour).
Well, for this there are tips that you can use, but only for those who really can divide the time between the busy work. Be careful, these tips are not recommended for those who are super busy and cannot break the concentration. Especially for workers who are constantly supervised by superiors.
When you use time-frame H1, the candlestick chart will change every one hour. This you can use to occasionally “run away” momentarily from your routine and look at the item chart of two or five minutes to see market developments. You can do it every 1 hour, or even two to three hours because there is often no significant change in one hour.
The longer the time-frame you use, the less frequency you peek at thechart.
Let’s say you can’t set regular time for trading. Don’t be discouraged because there are still things you can do.
You can use a time-frame that is larger than H1, for example H4 or greater. Consequently, of course, the transaction you are doing is no longer a day trade, but a longer one; maybe a week or more. However, this only gives you flexibility, because you only need to check the state of your transaction once a day and do not need a long time; maybe only ten or fifteen minutes. This is because the target and risk limit that you set will be greater than if you do day trading .
The Bottom Line
Although the forex market takes place 24 hours a day and 5 days a week, that doesn’t mean you have to stay online for that long. Even full-time traders have nothing like that. Full-time traders still choose the time that suits their trading strategy.
There is nothing wrong with being a part-time trader, as long as you can focus and have the right strategy to suit your condition.