Very few people can afford to trade forex full time. Often traders take positions during its substantive work during your lunch break or at night. The problem of irregular trade, given the strong volatility of the currency market, is in too many missed opportunities for buying and selling. If the market turns against the trader, and the position is closed, you can lose at all and available capital. Also trader loses chance to open a long position for the desired price. Missed opportunities can be a nightmare for those who are engaged in the trade part-time work.
Nevertheless, there are trading strategies that are effective under intermittent schedule. For example, “night” traders can restrict traded currencies, based on the volume of trades during the day. In other words, you can use a strategy which is to trade those currency pairs whose activity increases at night. For example, the best option would be a pair AUD / JPY or less known NZD / JPY and NZD / AUD. When choosing a pair of important to consider the correlation between the two currencies. Thus, with only a small amount of time during the day to study the market and opening transactions, the trader may well make a profit.
The main difficulties relate to those market participants that appear in the foreign exchange market several times during the day. In this case, trading activities are limited timeframe of up to several hours a day or even a week. Below are strategies that can be used in the presence of a non-permanent trading schedule.
Know your markets
Suppose that a trader from the U.S. can lead the auction either before or after work, which lasts from 9.00 to 17.00. In this case it is necessary to identify the most active currency pair in a convenient period of time. This will help the opening and closing dates of the major currency markets (Eastern time, EST):
New York opens at 8.00 (13.00 GMT) and closes at 17.00 (22.00 GMT)
Tokyo opens at 19.00 (0.00 GMT) and closed at 4.00 (9.00 GMT)
Sydney opens at 17.00 (22.00 GMT) and closed at 2.00 (7.00 GMT)
London opens at 3.00 (8.00 GMT) and closes at 12.00 (17.00 GMT)
During the most active markets in Japan and Europe (from 2.00 to 11.00), part-time traders can choose combinations like EUR / JPY and EUR / CHF, or consider other options, involving, for example, Hong Kong (HKD) or the Singapore dollar (SGD). From 17.00 until midnight pay attention to the AUD / JPY. However, regardless of the chosen currency pair, before opening a position trader should be familiar with the technical characteristics of couples, as well as fundamental analysis for each currency.
Stop-loss orders
Suppose that a trader can give forex trading on the minimum time, for example, one hour. In this case, the best option would be to turn the computer into a “trading partner”. Due to too rapid variability of the currency market lack the ability to track the movement of the steam can cause a huge number of lost transactions. Therefore, the use of computer trading program is likely to be an appropriate strategy. Often traders place a stop-loss order to protect their own investments if the market suddenly moves against them.
Analysis of price movement
If the trader has the ability to go on forex several times during the working day (10 minutes at a time), that is, to trade often, but short periods, then it will be appropriate strategy based on the price movement (born price action). Trade on the price movement can be described as technical indicators and analysis charts of the currency pair. The bidding process is based on the testimony of graphs. In general, traders analyze ascending bars (candles), defining the bars with a higher high or higher low. Treated similarly descending bars in search of a lower maximum and minimum. Rising bars indicate an upward trend, and the descending bars – the movement of the prices down. On the chart, you can see other indicators of price movement, which can be both in the bar and beyond. The key to success lies in a correct choice of the time period on the chart so that it corresponded to the maximum operating schedule trader.
Other strategies
If the trader is not possible to spend on the trading terminal for an hour or trade continuously in the same time, this does not mean that the road to forex closed. In order to succeed in the absence of opportunities to watch the market constantly, you can apply a variety of trading strategies:
• Smaller position for a longer period
After studying the market and choosing the appropriate currency pair, you can open a few small items, but keep them longer (several days). It is important to understand the drivers that affect the behavior of the selected pair, and take the time out to really understand the situation on the market. Also reasonable to place stop-loss orders to minimize losses if the market turns in the opposite direction.
• Focus on long-term trends
Instead of hours or even 4-hour charts, you can use longer time periods and track daily or weekly trends. This will allow to trade, just looking at the computer once a day.
• Placement of trade orders
Limit orders, stop-loss orders and other entry and exit from the market allow the trader to not miss the opportunity to carry out the transaction. On most trading platforms can place orders at no extra charge.
• Use of technology
You can set up automated alerts to your mobile phone or via email. This will constantly stay up to date even in the “non-trading” time.
Conclusion
Forex – one of the most attractive markets, trades conducted here 24 hours a day. The market is in constant motion, providing hundreds of opportunities for profit. Through these characteristics for the foreign exchange market traders of part-time day. Nevertheless, forex characterized by high volatility. In this regard, any transaction can be risky, especially for occasional traders, if there is no elaborate strategy. If the trader is not possible to monitor the situation on the market continuously, the success can help a variety of trading strategies: the selection of currency pairs that are most active in handy for the trader watches, the use of longer time periods, the analysis of price movement and the use of modern electronic technology.
In addition, consider their own level of understanding of the market, risk tolerance and the amount of leverage possible and preferred timeframe (trade once an hour or once a week). These elements are the foundation of any trading strategy.