Forex trading is something anyone can do. All you need is a trading account with a forex broker and a good internet connection. You don’t need to work for an investment bank or have a master’s degree in advanced mathematics. The rise of online forex trading platforms has opened up the foreign exchange markets to everyone.
Most non-professional forex traders don’t trade full-time. For many, it is a hobby or challenging way to make some extra cash on the side. Thanks to innovative automated trading tools found on top forex trading platforms such as MT4, you don’t even need to be at your desk to trade forex. The question we are answering today, however, is whether it is possible to make a profit if you only trade forex part-time. Let’s find out.
Making a profit trading forex is not easy. More than half of all traders lose money on their trades. It is fair to say that not everyone is well-suited to the challenges of forex trading, which is why it is essential that you practice first using a demo account.
Learn the Ropes
Whether you trade part-time or not, you need to learn the ropes before you start trading with real money. Enroll in a forex trading school or follow some more experienced traders to see what how they trade.
You have to learn the basics before you begin trading for real. There is a whole new language to familiarize yourself with. Get comfortable with trading charts, technical analysis, and how your trading platform works. Open a forex demo account with a reputable broker such as easyMarkets. Follow the economic news and learn how your preferred currency behaves when interest rates rise/fall or employment data is poor.
It is sensible to start trading part-time, to begin with. As the common expression goes, ‘fools rush in’. Don’t be a fool. If you take your time and learn the ropes at a comfortable speed, you are less likely to lose your trading capital when you upgrade from a demo account.
Open a Demo Account
Stick with a demo account for at least six months. If your trading strategy is consistently profitable after six months – i.e. you win more than you lose – you are ready to switch to a real account. However, don’t rest on your laurels!
Smart forex traders keep a trading journal. They write down the details of every trade they make, so they can review it later. This should help you spot any patterns, negative or positive.
Make Part-Time Trading Work for You
As we mentioned earlier, you don’t need to be a slave to your desk to trade forex. Use stop losses, limit orders, and entry orders to automate some of your trading activities. If you are unfamiliar with these, test them out on a demo account to see if your dummy trades are successful.
Many traders rely on forex signals but remember that you need to act fast when forex signals come in. Paying for forex signals is a waste of money if you are not available to make a trade.
Do you make a profit from trading part-time? Let us know in the comments.
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