In this article, we will consider the issue of combining trade with work, which is relevant for many traders. Let us analyze why this is needed and what can help to engage in trading in conditions of lack of free time.
Why combine Forex trading with work?
Trading in financial markets and working for hire, such as in an office, can be compatible. Not all traders who trade in Forex (or other financial markets) can leave their jobs and only engage in trading. First of all, this applies to novice traders – after all, in order to study all aspects of trading and begin to consistently make a profit in the financial markets, it may take several years.
Forex trading is not an easy craft, and only a professional can consistently earn money by trading. To become a professional in Forex trading, you first need to undergo training, then practice hard, after which in real trading you will need to learn how to cope with emotions and maintain discipline. All this takes time and money. Not all novice traders have significant capital available, which will allow them not to work for several years, pay for training and incur losses at the initial stage of trading.
Therefore, combining trade with work is a topical issue for many traders. Having a stable income at work makes it possible to pay bills and gradually gain skill. But combining work and trading is not easy – being constantly busy greatly limits the time you can use for trading.
Below we will look at several trading options that will help you cope with a lack of time.
What helps to combine Forex trading with work?
I would highlight a few basic ways to help you combine trading with work. Depending on the conditions of employment, the choice of the trading option will be different for each trader:
- The trader works remotely and has constant access to a computer with the ability to periodically view charts during the working day.
- The trader works part-time and can devote the rest of his free time to trading.
- The trader only uses the mobile app at lunchtime.
Preparing a trading plan
A trading plan is a trader’s pre-prepared trading ideas. In it, on the basis of the used trading strategy, promising deals are planned. Thanks to the prepared trading plan, there is no need to constantly monitor the movement of quotes, it is enough just to wait for the appearance of trading signals in the price zones indicated in the plan.
It is recommended in the morning, before the start of the working day, to analyze the current state of the market and charts of the financial instruments used, highlight promising trading ideas and draw up a trading plan for the day. Then you just have to follow your trading plan. Positions can be opened using pending orders, or you can set up alert signals that will give a signal when the price reaches the values specified in the plan.
Setting up trade alerts
A useful trader’s assistant is trading alerts – “alerts”. Alerts are a function of notifying a trader about various events taking place in the market. Using this function, a trader can receive an audio or text notification (signal) when the price reaches a certain level. This allows the trader to keep his finger on the pulse of the market, even if he is busy with his main job.
Alerts can be set in popular trading terminals and in various mobile applications. In addition to standard alerts, you can use a variety of advisors and indicators in trading that use their own internal alerts. That is, they notify the trader about the appearance of a trading signal according to the specified algorithm, and he already independently determines whether to open a position or not.
Trading on an available trading session
The Forex market works around the clock, except weekends. Therefore, depending on the time of employment and the time zone in which the trader is located, he may have the opportunity to fully use one of the three trading sessions in his free time: Asian, European or American. We exclude the Pacific session, as it is rather difficult to use for trading, movements on it are small.
If there is an opportunity to trade on the European or American sessions, almost all instruments are suitable here, you can use both positional trading and scalping. If the Asian session is available in time, then it is also possible to trade at this time, only at this time more attention should be paid to active currencies, such as: the Japanese yen, Australian dollar, New Zealand dollar. You should study the specifics of their trade and the factors affecting these currencies.
Using higher timeframes
If the time for analysis and trading during the day is very limited, you can use higher timeframes. Trading on daily charts allows traders to make infrequent trades every few days, there is no need to track quotes during the working day. The D1 and H4 timeframes are suitable for trading, we will leave the weekly charts to long-term investors.
Since signals on higher timeframes are rarely generated, this can be compensated for by using a larger number of financial instruments for trading. On higher timeframes, it is enough to analyze the charts once a day, find trading ideas and plan trades. Positions can be opened using pending orders, with mandatory risk control – using Stop Loss orders. In the future, the Stop can be moved every day following the price movement, thereby protecting the resulting profit.
Using Expert Advisors
Another popular trader’s assistant is a trading advisor. An Expert Advisor is an automated trading algorithm based on a trader’s trading strategy. If a trader is able to successfully automate his trading, then he will have an irreplaceable assistant who will trade for the trader, freeing him up time for work and rest.
For example, the MetaTrader 4 platform is very popular in the Forex market. To write a trading robot for this platform, you need to learn the MQL4 programming language. But just creating an advisor is not enough, it is necessary in the future, in your free time, to evaluate the statistics of its trade, optimize the parameters, and adjust it to periodically changing market conditions.
Combining Forex trading with employment is a pressing issue for many traders. Due to the presence of a constant income at work, a trader has the opportunity to gradually improve his trading skills, because it may take more than one year to become a professional. Based on the conditions of employment, a trader needs to choose a suitable trading method that will help to trade in conditions of lack of free time.