While a few people can afford trading Forex full time, traders look for part-time opportunities to open and close positions at night or lunchtime. Periodically trading can result in missed opportunities when selling or buying assets. In this article, we will show some proven part-time strategies that will let you avoid disasters in the face of missed trading opportunities.
If you are unable to act as a full-time trader, you will need alternative tactics based on part-time schedules depending on your personal preferences. On the other hand, such an approach comes with certain restrictions. For instance, if you are a night trader, you should consider limited trading instruments (certain currency pairs or indices that are not available for round-the-clock trading).
In this case, you will require a more flexible strategy to combine assets available 24/7. Besides, you will need to apply a sort of correlation between different world currencies in order to succeed in part-time trading. Learn Forex trading strategies that work.
Short-term Trading Strategies
Opting for a short-term strategy can be both risky and lucrative. The concept considers trading for as short as several minutes. First of all, you need to recognize a proper short-term trend. The idea is not just to spot the asset but also to protect yourself from potential loss.
This is where several basic approaches might help. They include:
- Monitoring Moving Averages – you need to keep an eye on the stock or asset price within a specific period. As a rule, traders use common timeframes that may differ from 15 to 200 days. It helps to overview the trend moving upwards or downwards.
- Cycle Trading – trading in cycles is the best idea when it comes to short-term strategies. It will help you to determine the most appropriate time to enter the market.
- Sense of Trends – depending on the trend (positive or negative), you can decide on whether to buy or sell it. This is what pros call "getting the sense of a market trend" to make a profit even when the market is against them.
- The best concept to go short.
- Good for trading on the falling market.
- Flexible in terms of trading time frames.
- It can be risky.
- Calls for in-depth analysis and analytics.
- Not good for newbies.
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Medium-term Trading Strategies
The strategy will suit traders who are aimed at trading stocks in the medium timeframe. In other words, you are supposed to hold a position from several days to weeks depending on the trend movement. As a result, the concept requires more analysis if compared with a short-term strategy.
In other words, you are supposed to examine not just short-span price moves but also a trend's historical performance compared to the anticipated position. The process may be more time-consuming, as traders have to examine quarterly reports, monitor events related to the asset as well as the overall economical and geopolitical situation.
You will need:
- Historical charts that depict the asset price movement. It will let you conduct a successful trading roadmap for a longer span.
- Analytics to consider various scenarios for the asset future movement. The idea is to clarify future expectations and foresee possible outcomes.
- Last but not least is to tie all the generated info together.
- Less risky if compared to short-term trading.
- Better for beginners.
- Easier to forecast.
- Requires in-depth trading advisory.
- Numerous aspects and factors to consider.
- Proper Technical Analysis implementation.
Long-term Trading Strategies
The name of the strategies makes it clear that the position is held for a longer period. In some cases, it can be months or even years, while the asset stands in the same position and does not go anywhere. The approach considers making fewer transactions to get a bigger profit that starts at 200 pips or more.
However, opting for this particular concept means having fewer trading opportunities. Besides, you are supposed to be thoroughly prepared and have a solid financial, trading, and analytic background to handle the strategy.
The key features of these Forex trading strategies are as follows:
- Small Leverage – while long-term strategy mainly applies to position trading, traders will have to use very small leverage.
- Control over Stop-Loss – let's say, you trade currency pairs. They can move hundreds of pips every hour. So, you need to make sure it will not enable a stop-loss
- Swaps are to Consider - if you decide to trade long, you need to pay attention to swaps. The idea is to evaluate expenses in case of a negative swap.
- Trade with Larger Capital – with this concept, returns are comparative to the capital you trade with. To make profit, you need trade with a relatively larger amount of capital. This is where the "return vs ration" concept matters.
- Higher profit.
- Stronger trends.
- Difficulties in closing positions earlier than planned.
- Turning losing trades into winning is practically impossible.
- Requires a comprehensive knowledge base.
- Trading with larger capital.
The Bottom Line
Choosing a suitable strategy is vital before you enter the market. You need to clearly understudy, which particular concept is right for you. Evaluate your knowledge, tactics, and trading techniques before you dive deep into the part-time trading process. Learn more about each particular strategy described above. We offer a detailed guide on each concept to let you decide if it works for you.
We wish you a good trading luck and looking forward to see you trading with us.
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.