When most people consider joining the Forex market, they think of quitting their day job, abandoning the security of a steady paycheck, and risking it all.
But did you know that you don’t have to quit your job when you start Forex trading?
You can become a part-time day trader!
Part-time day traders, as the name suggests, only trade for two or three hours per day and then move onto other activities.
In this piece, we’ll look at how to become a day trader. We’ll also share some time-tested tips that will not only prepare you for the Forex market but also help you to become an excellent part-time day trader.
Understand What Forex Trading Is All About
You’re about to join the largest market in the world. Therefore, you want to learn everything about Forex trading. This will give you a deeper understanding of what you’re getting into and also help you develop winning trading strategies.
Studying the Forex market and identifying a reliable source of forex signals will also help you avoid the mistakes that most traders make.
Trade When the Market Is Active and Choose the Right Pairs
To guarantee liquidity, make sure you trade when the market is most active.
Liquidity refers to a trader’s or speculator’s ability to sell a position, which is better during peak volume hours.
Also, make re you choose the right pair. If you have a mini account, a limited trading window or don’t have much experience, restrict your trading to the following pairs: USD/EUR, USD/CHF, USD/GBP, USD/CAD, USD/JPY and USD/AUD.
Well, they have strong liquidity. After getting more experience, you can try EUR/GBP, EUR/JPY, and EUR/CHF; they also have high liquidity.
Take Advantage of Automated Trading Systems
Just because you’re a part-time day trader doesn’t mean you have to miss a trading opportunity.
Invest in an automated trading system!
There’s a wide variety of automated trading systems available on the market today. Some of them come with sophisticated features that can monitor currency prices in real time.
Others can also identify profitable spreads, place market orders, and automatically order the trader.
You should, however, be careful and ensure the automated trading program you buy is safe and is from a reputable company.
Find a Mentor
There are more than 9.8 million online traders (or 1 out of 781 people) worldwide.
With so many traders, you can easily find a mentor or a reliable broker to guide and help you learn the ropes of Forex trading.
Take Profits When They Materialize
One of the biggest mistakes part-time traders make is anticipating wide spreads and more profit.
Don’t fall into this trap! Take profits when you can because a market trend can change instantly due to unpredictable external events.
Also, keep this in mind: the Forex world is unpredictable. You should risk what you can afford to lose even when chances of losing are minimal.
Final Thoughts on How to Become a Day Trader
Part-time trading can be a great way to supplement your income. But you need to do it right!
The tips highlighted above will help you become a successful part-time day trader and also prepare you for possible challenges of the Forex trading world.
You can visit our blog to learn more about how to become a day trader and gather tips for successful trading.