One of the biggest myths in forex trading is that you need to be glued to your screen around the clock, seven days a week. The truth is that many successful traders have full-time jobs and families. What is their secret? They use strategies that fit their lifestyle.
At SouqCapital, we want you to trade smarter, not harder. Here are three popular strategies perfect for the part-time trader.
1. Swing Trading Strategy "Set it and Forget it"
What is:Swing trading aims to capture the "swings" in price that occur over a few days to a few weeks. You don't worry about the minute movements; instead, you focus on the larger trend that spans several days.
Why it's good for part-time traders: You only need to check your charts once or twice a day (for example, in the morning before work and at night). You place your trade with a clear stop loss (to limit potential loss) and take profit (to secure profits), then let the market do the work.
2. End of Day Trading Strategy
What is:This strategy is based on the idea that the closing price for the day is among the most important. Traders wait until the daily forex market "candle" closes (this happens at the same time every day) and then make their trading decisions based on that single piece of information.
Why it is good for part-time traders:It removes all the "noise" and emotions from the trading day. You have a set time - say, 10 PM every night - where you spend 20-30 minutes analyzing daily charts and deciding whether to enter, exit, or hold a position.
3. News-Based Trading Strategy
What is: Major economic news—such as interest rate announcements, employment reports (NFP), or GDP figures—cause significant and expected market movements. This strategy involves identifying these key news events in advance and placing a trade to take advantage of the anticipated volatility.
Why it's good for part-time traders:These events are scheduled weeks in advance (you can find them in any economic calendar). You don't need to trade every day. You can simply log in during these high-impact events, place your trade, and log out.
A final word on risk management
There is no strategy that is 100% accurate. The key to long-term success is risk management. All these strategies require the use of a stop-loss in every trade to protect your capital.