There used to be a time when you had to be a full-time floor trader or forex broker in order to gain access to the markets.
But today, the internet has allowed virtually everyone to get acquainted with the world of forex trading. And what’s great is that you don’t even have to quit your 9 to 5. As a part-time trader, you can benefit from the security of your monthly earnings while getting some nice income on the side through your trades. Here are five tips to ensure you start off in the right direction.
Your trading style should match your schedule
Being a part-time trader means you only have a limited time to work with every day. If you can only allow one hour of trading, opportunities are inevitably limited. This one hour might come at a time when nothing really happens in the market. For this reason, you need to iron out your schedule first before picking a trading style. If your time is severely limited, consider swing and position trades or even scalping.
Get the most out of your trading time
When volatility is low, it’s tempting to do something else completely unrelated to trading. But since your time is already limited, you should use every minute to hone your skills. As with anything, you get better with practice. Make it a habit to do chart reviews, trade journaling, and backtesting. You can also use MetaTrader 4 demo which allows you to make virtual trades and experiment with different strategies without the risk of losing money.
Start a trade journal
It might seem cumbersome to keep a trade journal, but it’s a simple tool that can turn you into a master trader. If you’re not reviewing the charts, you can sift through your trade journal and study the trades you have made in the past. This journal also ensures that you follow the trading rules you have set for yourself. Journaling should be part of your daily routine as it reminds you of getting back to the basics and learning from your mistakes.
Develop the right mindset
Many part-time traders feel frustrated when they miss out on the big moves. However, there’s no reason you should feel the same way. Unlike a forex robot, you can’t watch the charts 24/7. Your focus should be on creating a profitable setup. You can’t catch all the market movers, but getting one set up right can be all you need to enjoy huge gains.
Prioritize life outside of trading
If trading doesn’t put food on the table, then don’t forget to prioritize your main source of income. It might be your dream to become a full-time trader, but you’d never want to compromise your day job. Also, making sure that your life outside trading is all good can help you make more winning trades, which is a win-win situation.
Being a part-time trader opens the door to new and exciting opportunities. Whether you’re looking to make a decent income on the side or trade full-time in the future, be sure to keep these tips in mind so you wouldn’t lose track of your goals.