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Workflow and Strategy Advice: How to Become a Part-Time Trader?

Many individuals believe that trading foreign currency (FX) takes a lot of time since market research and opportunity identification are involved. However, because FX is available around-the-clock, part-time day traders can more easily profit from currency trends since they are not constrained by the hours that an exchange is open for business. Therefore, those who cannot afford to devote a lot of time to trading may find that forex trading is convenient.

PART-TIME DAY TRADING – KEY TALKING POINTS

  • Reasons to Trade Forex Part-Time Benefits of Trading for Shorter Term.
  • How part-time traders may increase productivity?

WHY PART-TIME FOREX TRADING? TRADING FOR SHORTER DURATIONS HAS ITS ADVANTAGES

A decrease in the possibility of “under- and over-trading” is made possible by part-time trading. Undertrading prevents money from being spent at the right moments to take advantage of prospective trading opportunities. With full-time traders, there is sometimes an overabundance of financial information to assimilate. The ambiguity of this might be intimidating. A trader who only trades seldom has a streamlined perspective on the markets and experiences less uncertainty. Little time is spent, which leaves more time for social activities.

How to improve the work flow for part-time traders

For obvious reasons, practicality is essential for a part-time trader. The list that follows outlines several simple methods that may be used to speed up trade.

  • Find a basic plan of action.
  • Adapt strategy to the situation at hand.
  • Employ entry orders.
  • Repeat!

A STRATEGY FOR EFFECTIVE BREAKOUT TRADING FOR PART-TIME TRADERS:

If you don’t have much time, there are a variety of approaches you might take. The “Simple DNC Breakout” method is described below. Even if you have never traded forex before, the instruments used to pick trades for this technique are extremely simple.

You may be asking how a trader can successfully locate excellent trades if they are not always monitoring the market, so let me address that before I go into further detail about the method. The fundamental idea behind this strategy is that the trader will put in orders to enter the market at key price points.

This will be the signal to place the trade when the market trades through these prices, and the resting order will handle the entry and exit automatically.

TRADE

As a result, the trend’s strength determines how effective this method will be. Utilizing the market’s biggest trends at any particular time is key to the success of this approach; the stronger the trend, the better. Traders seek to initiate trades in the direction of the strong trend when these crucial price points are hit.

As a consequence, this kind of technique offers the following 2 noteworthy advantages:

  1. There is no need to babysit the trades:

Give the market permission to join these transactions at the predetermined pricing by placing orders to do so. It is convenient for part-time traders since many of these transactions will initiate without the trader paying close attention to the market.

  1. You may avoid “some” lost transactions by using this strategy:

This does not guarantee that every transaction will be profitable. The market never trades at the strategic price point, therefore it often occurs that a trading concept is erroneous but the deal is not executed. In other words, your market entrance is not triggered, keeping you out of the losing transaction.

The Basic DNC Breakout Technique

Tools Required:

  • A price chart with a daily bar setup.
  • Indicator of the Donchian Channel (DNC).
  • A powerful trend.
  • Time allotted for 30 minutes to determine strategic pricing points.

Open a price chart for a currency pair that has been experiencing a significant trend to get started. Every bar or candle on a daily price chart corresponds to one day’s worth of price movement.

Add the DNC indicator to the chart next (most charting packages include this for free). The DNC indicator will determine the price’s highest high and lowest low over the previous X bars. Set the DNC indicator’s input value to 8. The highest high price and the lowest low price throughout the course of the last eight trading days are as follows:

Trader

Identifying the Strategic Price Points

Filtering transactions for long positions is essential since the AUD/USD has been in a strong upward trend. On the other hand, in a significant downtrend, the filter would only allow sell transactions. The trade setup procedure just requires 4 easy steps.

Trader
Rules for “Buying”
  • Use the upper DNC line as a strategic entry point into the buyer’s position (green square).
  • Our stop loss is the lower DNC line.
  • Set the stop loss manually to trail at the lower DNC line.
  • When the price hits the lower DNC line, close the position (pink square).
Rules for “Selling”
  • The crucial price point to begin a sell trade is the lower DNC line.
  • As a stop loss, use the upper DNC line.
  • At the upper DNC line, manually track the stop loss order.
  • When the price reaches the upper DNC line, close the trade.

A SUMMARY OF PART-TIME TRADING

It’s incredibly simple to integrate part-time trading into your already hectic schedule. People don’t have to stop trading because of time commitments, whether related to work, school, or family. A trading routine that is well-balanced can be achieved by using the straightforward strategy described in this article.

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