Balancing a Regular (day) Job with Forex Trading – Part One
Forex, or foreign exchange market, draws not only experienced traders from other markets but also more and more people without any significant previous experience.
Despite the differences in their skills, each of them has certain ambitions, which gives them the courage to become a part of the market and also feed their hunger to potentially earn money.
Their initial optimist often speeds things up at the beginning, and that is why new traders often forget about preparation. Nowadays, it isn’t possible for a person to become a successful trader right away.
Finance, whether we like it or not, is a serious topic that requires a cautious approach. This article attempts to explain (not only to rookie traders) how to execute contracts on the financial markets and have a regular job.
One of the problems part-time traders have to face is the changing nature of the market. Their trading opportunities are often limited because the trader might not be on the platform when it is time to enter a trade in the market.
Another problem these traders have is rushed or late trade orders, which are directly related to the little time they have to spend on the platform. Entering positions in a rush and closing positions late can lead to significant losses on their trading account.
When you enter a trade in a rush, it doesn’t automatically mean you’re in a losing trade position. Best case scenario, it only leads to lower profit. But from the point of view of a professional trader, this would be considered a loss as well because of the “missed opportunity”.
That means, for example, the trader could have gained more, but he entered at the wrong time and gained less, meaning he lost a potential profit. In the end, all the mentioned scenarios can influence the trading account balance negatively.
There are many trading approaches that work for part-time traders. Let’s take a closer look at some of them.
Technical trading is the most beneficial method for busy traders who can only devote less time to trading. How does technical trading look? It is basically a strategy based on the analysis of current price charts combined with technical indicators.
A trader is capable of analyzing well the current candlestick in relation to the previous one. When the high and the low of the current candlestick are above the high and low of the previous one, it can mean the market is on a rise, and the other way around.
To confirm a trend using this trading approach, a variety of technical indicators are used. Every trader can choose if and which ones he’ll use, and that is why the success rate of this strategy depends solely on choosing the right indicator and on his entering/exiting techniques.
In the picture above, you can see our brand new Purple Bands indicator, which you can download for free to the MetaTrader 4 trading platform here: https://www.purple-trading.com/trader/purple-bands-indicator/
Stop-Loss order optimization
When a trader is limited by time, he can use semi-automated or automated trading in these situations. This can include the automatic execution of trade orders (depending on the chosen Expert Advisor - EA) without the trader having to be on the trading platform himself.
Which optimizations and strategies (not) to use when you have a job?
Professional traders often agree that using scalping or short-term strategies does not often go well with a regular job. Aside from a few exceptions, it usually ends in huge losses.
For optimal part-time trading, you could choose to limit the number of executed transactions and use medium-term and long-term trading strategies. According to professional traders, it is also suitable to choose instruments with less volatility. Highly volatile instruments can fluctuate unexpectedly, which can cause trouble if a trader is at work or cannot devote time to trading at that moment.
There are countless ways to optimize trading to fit with your regular job. That is why each trader has to choose the way that will suit his lifestyle the best.
Part-time trading requires precision and confidence. You might only trade for a couple of hours a week or a month, but you still have to know exactly what you’re doing. For long-time trading, it is also necessary to choose the right and reliable broker. Because of all the mentioned circumstances, part-time trading can only be successful if traders take is very seriously, study it from A to Z and don’t leave anything to chance.
About the Author
Team Purple Trading
Purple Trading is a true and 100% fair ECN / STP forex broker providing direct access to the real market. High speed orders execution, no trade-offs, no limits for any type of trading, the most advanced trading technologies. Explore more about Purple Trading at www.purple-trading.com .
P.M. Purple Trading is a trade name owned and operated by L.F. Investment Limited., 11, Louki Akrita, CY-4044 Limassol, Cyprus, a licensed Cyprus Investment Firm regulated by the CySEC lic. no. 271/15.