- Reviewed by James Stanley, Nov. 24, 2021
Many people think that trading foreign exchange (FX)[1] requires a lot of time to research the market and to identify trading opportunities. However, the 24-hour nature of FX[2] makes it easier for part time day traders to take advantage of trends[3] in currencies because they are not bound by when an exchange allows them to trade[4]. Therefore, forex trading can be convenient for individuals who cannot afford to invest large quantities of time on trading.
Part-Time Day Trading - Main Talking Points:
- Why Trade Forex Part-Time? Advantages of Trading for Shorter Durations
- How Part-Time Traders Can Improve Their Workflow
- An Effective Breakout Trading Strategy for Part-Time Traders
Why Trade Forex Part-Time? Advantages of Trading for Shorter Durations:
Part -time trading allows for an increase in trading efficiency, with less chance of ‘under and over-trading’[5]. Under-trading doesn’t allow for funds to be used at the appropriate times to exploit potential trading opportunities. With full-time traders, there is often an overload of financial information to absorb. This can be daunting because of the lack of clarity. Part-time trading leaves the trader with a simplified outlook to the markets with marginal uncertainty. The time invested is minimal, resulting in more quality time for social activities.
How Part-Time Traders Can Improve Their Workflow
Practicality is crucial for a part-time trader for obvious reasons. The list below highlights some simple techniques that can be implemented to make the trading process more efficient.
- Identify a simple strategy
- Match strategy to relevant environment
- Use entry orders
- Repeat!
An Effective Breakout Trading Strategy for Part-Time Traders:
There are several different strategies to approach the market if you are short on time. The
