Forex playing experience is not the same for all investors. Part-time investment strategy is very different from professional investment. Do not rush to apply all investment strategies to avoid losing money!
Many Forex investors don’t have time to trade full-time, but focus their efforts on part-time trading in the evenings or on break during the working day. That is the advantage of 24h forex market. Top4forexbrokers.net summarizes and helps you read the most useful forex playing experience, especially for part-time investors and beginners.
However, a part-time forex play experience always remembers that the strategy used for part-time investors is vastly different from the strategies used by full-time investors. Here are some useful forex playing experiences that part-time investors can use:
1. Identify target market
Because the Forex market is open 24 hours, focus your attention on the active markets when you want to trade. For example, an investor based in Sydney working during normal business hours has two options:
When the Sydney market is open, the US market is closed. Therefore, investors can trade in the early morning hours before the Sydney market opens, then the volume for USD pairs is at the highest level. Or, Investors can also open positions in the evening when the European market is open.
2. Trading plan
This is an important point in the forex playing experience for part-time investors. When you are unable to monitor the market at all times, it is extremely important to follow the established trading plan.
Participating in a transaction, you must be able to answer the following questions:
Why am I in this trade? (Why do I feel I have an advantage here?)
Where will I place a stop loss order to exit out of trade in case I am wrong?
How much risk will I put in this trade? And what size will I set?
If the trade goes in the direction I wish I would move my stop loss order to breakeven or let it move higher to gain profit?
At what point will I move to break even or make a profit?
When will I take profits and exit this trade?
>> Read more: STEPS TO MAKE EFFECTIVE FOREX STRATEGY YOU MUST KNOW
3. Automate trading to minimize risk, at least stop loss orders and take profit
Part-time investors can minimize the risk by using automated market orders. This helps limit your risk and allows you to enter and exit trades without access to the trading platform. Some common examples include stop loss and take profit orders, both automatically closing a trade. Many Forex platforms also allow investors to place orders based on specific criteria, i.e. an open position if the price moves to a certain point.
4. Make sure the news source is always up to date and inform you promptly
Unexpected news, political instability and monetary policy decisions can shock the market and create quick responses and price volatility in the market. Part-time investors must take steps to ensure they do not miss these important events when they occur. There are two steps a part-time investor can take:
Firstly, investors should create a display calendar when key newsletters are scheduled such as FOMC data or central bank press conferences.
Secondly, investors should use smart phone or email applications and the alert system provides real-time notifications for important market news.
5. Focus on longer time frames
Looking at long-term trends (daily / weekly) gives higher value to part-time investors than when looking at hourly or even four-hour charts. This will allow you to trade while looking at your computer only once a day.
Many part-time investors choose to open long positions. This allows investors to look for macro trends instead of intraday trends. In addition, these types of transactions can result in greater profits per trade, which is useful for an investor who does not have time to open many positions during the week.
Synthesized by top4forexbrokers.net