Historically, forex trading used to be exclusive to professional and institutional traders, while the majority of currency trades were completed by telephone and via corporeal brokers.
The market has changed exponentially since such times, however, with the digitisation of the foreign exchange having increased accessibility exponentially and created a marketplace that’s worth an estimated $6.6 trillion each day.
Just because you can access the forex market, however, this doesn’t mean that the practice is right for you. We’ll explore this in the piece below, while asking whether or not you should invest in currency.
What’s the Difference Between Part and Full-time Forex Trading
In simple terms, part-time forex trading refers to practice of investing in currency alongside a full-time, 9-5 job. Despite the digital advancements that the market has benefitted from during the last 20 years or so, this remains a challenging pastime and one that requires careful navigation.
OK, we hear you ask, but what are the core differences between part and full-time forex trading? To begin with, part-time traders will operate within completely difficult parameters when it comes to budgets and expectations, as they’ll typically invest with less and adopt conservative profit goals (especially when starting out).
The reason for this is simple, of course, as they’re motivated to trade forex as a way of supplementing their existing income rather than pursuing this as a brand new career.
With this in mind, part-time forex trading is likely to appeal mostly to individuals whose job affords them a certain amount of disposable income, while interested parties should also have at least a fleeting interest in the financial markets and currency trading.
Regardless of the differences between part and full-time traders (and their core motivation), there’s no doubt that digitisation has created a more level playing field for investors from across the spectrum.
More specifically, online trading platforms have ensured that part-time traders have access to the same analytical and technical indicators as professionals, while also allowing them to hone their skills using a demo account.
A Look at Some Part-time Trading Strategies
Ultimately, the forex market is a 24-hour entity, and one that continues to drive currency price movements across three separate geographical regions.
This is a challenge for part-time traders, who will often have to take time away from their traders to do their day job and attend to other commitments in the evening.
With this in mind, one of the most important steps is to ensure that stop-losses are in place on your account. This tool works to automatically close positions once they’ve incurred a predetermined level of loss, depending on the size of the trade and its unique risk profile.
This will help to minimise losses and safeguard your capital, which should be significant priorities for any aspiring trader.
Another viable part-time trading strategy involves price action trading, which requires you to analyse the technicals of a specific currency pair and make genuinely informed decisions.
This provides a simple but viable method of minimising (or at least pre-empting) market volatility, which is ideal if you have to take regular breaks from your trade due to work or family reasons.