Forex is one of the largest financial markets with high liquidity and low overhead costs. This makes the market a viable platform for part-time forex brokers to use it as a source of passive income.
Take a look at how you can dive into the market as a part-time forex trader.
Who is a part-time forex trader?
A part-time forex trader is someone who trades currency pairs professionally on a part-time basis along with their primary job. They take out a few hours from the day to trade the currency pairs instead of constantly monitoring the forex market.
Benefits of part-time forex trading
Trading forex part-time provides the part-time forex trader with an extra or passive income. Since the forex markets are open round the clock, the part-time forex trader can trade anytime according to their daily routine and add to their primary source of income.
Requires lesser time
As a part-time forex trader, you do not have to monitor the forex market on a regular basis. You can give anywhere between a few minutes to hours per day and focus on your core business. By trading a few hours every day, you are also able to leverage big news events on time.
Less pressure to make only successful trades
Part-time traders have a main job that helps them earn a decent income. This makes it possible for them to not necessarily trade big positions in order to make only successful trades. As they are not solely dependent on the market, there is more scope to learn from each trade. When traders are not pressured to make only gains, they are generally able to place successful orders by learning from their mistakes and making informed decisions.
Lets you start small
Part-time forex trading does not require much capital to start with. Traders can start with a small amount and invest as little as they would like. Since they are only trying out the market, there is no set amount that needs to be invested in becoming successful.
Acts as an interesting filler
Part-time trading is an interesting filler in people’s otherwise dull and mundane job life. Doing the same tasks every day can become boring as the tasks are not diverse. Involving trading into one’s daily routine can bring in the thrill and excitement to start something new as the markets are always ready with something new or the other.
How to trade part-time in the forex market?
Find the right currency pairs to start with
There are hundreds of currency pairs that you can trade in the forex market. Choose the right currency pairs that suit your part-time trading needs. We suggest that as a beginner part-time trader, you choose major pairs like USD/EUR, USD/GBP, USD/AUD and more, as they are one of the safest yet most lucrative pairs.
Since USD is the highest traded currency, any pair having this currency is going to help part-time traders get the hang of the market and benefit from the high liquidity. When as a part-time trader, you have gained some experience and researched more about currency pairs, you can opt for pairs like EUR/GBP, EUR/JPY and EUR/CHF, which are highly liquid but also volatile, reaping high benefits.
Set an automatic trading system
The next step into trading part-time is to set up an automated trading system that will place orders on your behalf. Such systems are fully equipped with automatic programs and functions needed to enter or exit a trade at a suitable price. These systems also monitor the currency pair prices in the market and impose stop limit prices.
Once you set up this system and let the system know your suitable price levels to exit and enter a trade, it automatically executes an order when the currency pair prices touch those levels. The automatic system cancels the order if the price levels are not touched.
Choose the right functions
One of the most useful functions for part-time traders is the ‘set and forget’ program that allows the automated trading platform to make automatic decisions. These decisions are made on the basis of the price set by you on the platform. If the market does not move in the direction you anticipated, the system forgets the decisions you wanted the program to take. Hence, with an automated trading system, you are able to place informed, automatic, disciplined and unemotional orders.
Prioritise disciplined decision making
For part-time traders, disciplined decision-making is a must. Part-time traders are advised to exit a trade when the order touches its expected value instead of waiting for a wider spread. They need to be self-disciplined and avoid unforeseen market events.
In most cases, part-time traders opt for long-term trades so that they do not have to monitor the market regularly. This is why we advise them to hold onto the trades for at least some time before getting out of it just due to a favourable short-term trend.
It is easy for traders to place orders at the beginning or the end of the trading day instead of trying to analyse the market in between. This will require lesser time and help them hold onto the positions for longer. Holding a few positions for a longer time is beneficial for part-time traders as not only will it require less research, but it will free up some time for them to focus on their main job until the long-term gains are recognised.
Become a part-time forex trader today
Becoming a part-time forex trader is a few minute’s process and provides an opportunity to benefit from one of the largest financial markets in the world. Start with Blueberry Markets, a forex trading platform to get daily news, insights and market analysis on your feed that will help you make informed decisions without spending much of your routine time on the same.