Many people think that trading foreign exchange (FX) requires a lot of market research to identify trading opportunities. However, due to the 24-hour nature of FX makes, it’s easier for part time day traders to take advantage of trends in currencies. Therefore, forex trading can be convenient for individuals who don’t have much time on trading. Part-time trading leaves the trader with a simplified outlook to the markets with marginal uncertainty. The time invested is minimal, resulting in more quality time for other activities.
An Effective Breakout Trading Strategy for Part-Time Traders:
There are several different strategies to approach the market if you are short on time. The strategy included below is called the ‘Simple Donchian Channel Breakout’. The tools involved in identifying trades for this strategy are fairly intuitive even if you have never traded forex previously.
You may be wondering how a trader can effectively find good trades if they are not constantly watching the market? The essence of this approach is that the trader will place orders to enter into the market at strategic price points.
When the market trades through these prices, this will be the signal to enter the trade, and the resting order will take care of the entry and exit automatically.
Therefore, the strength of this strategy depends upon the strength of the trend. The success of this strategy is to utilize the strongest trends in the market at a given moment - the stronger the trend the better. When these strategic price points are reached, traders look to enter trades in the direction of that strong trend.
There are 2 significant benefits to this type of strategy:
1. No need to baby-sit the trades:
Place orders to enter the market at specified prices, then simply let the market enter these trades at these strategic prices. Many of these trades will trigger without the trader’s attention on the market, making it convenient for part-time traders.
2. This strategy can keep you out of ‘some’ losing trades:
This does not mean every trade will be 100% correct. However, it happens frequently where a trading idea is incorrect but the trade is not entered in to as the market never trades at the strategic price point. That is, your entry into the market does not get triggered, meaning you are kept away from the losing trade.
Part-time trading is very easy to fit it into your already busy schedule. Individuals don’t have to give up on trading because of time constraints be it work, school or family. Following a simple strategy as outlined in this article can allow for a well-balanced trading routine.