There are a lot of forex strategies that you can use when you trade on the forex market. However, you should consider whether you are going to be trading full time or part-time. If you are going to trade part-time then the forex strategies that you use are going to be different. It is important that you know about forex strategies that you can use as a part-time trader. Some of the part-time traders will be able to access the market frequently while others will only have an hour to trade on the market. When you look at the forex strategies you should consider which ones are best for you.
Knowing When to Trade
While the forex market does not have regulated or central exchanges there are trading sessions that you have to know about. These sessions are the New York, Tokyo, Sydney and London sessions. There are times when these sessions will overlap and these are the best times to trade. Of course, the part-time trade is often not around during these overlapping time.
Once you have identified the different sessions and the ones that you are able to trade in you should find out which currency pairs trade best during these times. If you are able to trade during the New York session then you should look at pairs with the US dollar in them.
Using Stop Order with Forex Strategies
Having a stop order is necessary for all types of trading, but they are more important for part time traders. The reason for this is the fact that part-time traders cannot keep an eye on their trades throughout the day. Stop orders stop losses from becoming too great when the market turns against your trade.
Price Action Trading
Price action trading is a good strategy for part-time traders who have frequent yet brief trading periods throughout the day. Price trading uses technical and chart analysis to determine what a currency pair is doing. The trader will then trade solely on what the charts are telling them. This is a very short-term strategy that does not require large amount of time to be spent on analysis. The profit you get from these trades is generally small, but many traders use leverage to increase the value of the small pip movements.
The Other Strategies
If you are not able to trade frequently throughout the day or even find a single hour to trade in there are other strategies that you can use. To be successful as a part-time trader you need to consider these strategies:
- Having fewer positions that are held for days is one option. After you have analysed the market you should find positions that you can hold for a number of days. This long-term trading allows you to make profits without having to constantly check on the market.
- Use trading systems and automated technology. Most part-time traders that do not have much time use automated technology. Some systems are fully automated while others are only semi-automated. These semi-automated systems are more like signal systems that tell you when you should be trading and the entry points.
Get a free Forex PDF PLUS:
- 14 Video Lessons
- Free One-on-One Training
- A 5000$ Training Account
- In-House Daily Analysis
- Get FULL ACCESS