Undoubtedly, Forex trading is not a main source of income on the rise for most of us. This option appears as an additional way of making money for those who want to make things better. When I first heard of Forex, I was working for the company as one of many employees with the fixed schedule. Obviously, I wasn’t confident that it would work out for me to earn money by trading currencies. Hence I focused on part-time trading which allowed me to stay in the comfort zone to some extent.
It was only later that I have realized that the best way of getting a foot in the forex trading world is starting part-time trading until you fully understand the workings of the financial market. Using a simple strategy that requires very little time allows new traders to get the feel of professional trading.
Therefore, in this article, I want to briefly highlight the plan of part-time trading on Forex.
Step 1. Preparation
Clearly, that’s the most important part of trading. As a new trader, you’d first select a good broker and a trading platform. Spreads is the most important factor to consider after which functionality and ease of use should be major role players. Spreads are measured in pips and the higher they are, the more each transaction costs. In Forex trading, brokers often offer traders leverage on their accounts. Leverage is both the trader’s greatest advantage and the vastest risk. Keep leverage to the minimum for your own protection. At various times, I had experience trading at XM, JustForex, and Exness. These Forex brokers are well-known and reliable.
Step 2. Which single currency pair to choose
Let me guess, you work a nine-to-five job which means you’re able to trade either early or late in the day. Find currencies and markets that are the most active these time frames, so that you trade during peak volume hours. Of course, you can also choose to work with daily, weekly or monthly charts, where short-term activity won’t matter as much. Remember: the more active a market is, the better the chances of precise and quick trade executions are.
Step 3. Analyzing and decision-making processes
Take a look at your results after first trading deals. If something doesn’t work appropriately, you’d better focus on another currency or identify the problem. Trading is not a get-rich-quick scheme but anyone willing to learn and to do the work can become successful over time. You can spare yourself from trading losses by using Demo accounts during your studies. Trading on such kind of accounts is performed on virtual money so you can test your strategies and skills before real trading practice.
So, becoming a part-time Forex trader takes careful preparation, some learning and a lot of trial-and-error experience.