Forex is the world currency market, where the average user can increase his savings by trading on the difference in exchange rates.
This currency exchange exists from 1977. At that time trading was slower, since negotiations between representatives of different countries were conducted only by phone. Despite this, the daily turnover in the Forex market was as much as $5 billion 30 years ago.
With the development of modern technologies and the creation of the Internet, people have greatly accelerated the process of trading and began to earn more on it. Today, access to the Forex market operations is provided by brokers via the appropriate software – a trading terminal. The advantage of Forex is that you can work at home still having a stable earnings in your original post. Here are some tips on how to become a successful Forex trader, in particular, trading on a part-time basis.
How to become a successful part-time Forex trader?
Tip #1 Learn trading online
To become a real trader with a stable income from the Forex market, you need to work and improve your trading skills, as well as studying new materials and gaining relevant experience constantly.
Many people think that in order to work partially on Forex, this stage can be neglected. But this is far from the case. To work successfully on a part-time basis, in fact, you need to work much more and study more information to know which pairs to trade at what time, when it is better to work, how to enter the market, what strategies to use, etc.
Today there is a huge amount of Forex training materials. Many of them are free and available to everyone. For example, JustForex broker provides a lot of valuable information for traders on its website: educational articles, glossary, video, etc. There is also an analytical section, where you can find relevant fundamental and technical forecasts for majors.
Tip #2 Choose the most convenient time and session
There are several trading sessions on the Forex market. Each has its own characteristics. Therefore, building your time to work, you should take into account these features and choose the most appropriate time.
There are four trading sessions on Forex:
- Asian – starts its work at 23:00 (GMT+0) and closes at 9:00 (GMT+0). It is characterized by not very high volatility of currencies and a relatively calm market situation.
- European – works from 6:00 (GMT+0) till 16:00 (GMT+0). The relative calm market characterizes the opening of this session. The peak of the movement falls on the opening of the London Stock Exchange. Often, by the beginning of the European session, important economic news from European countries comes out, providing a certain dynamics in the movement of currencies.
- American – opens at 13:00 and closes at 23:00. By the beginning of the American session, a new activity of currencies begins to be observed, which is connected with the beginning of the work of American banks and the return of European financiers from lunch.
- Pacific – works from 20:00 (GMT+0) till 7:00 (GMT+0). This session has the lowest impact on the market of its major players. Therefore, it is during the Pacific session that the market often is moving in the flat.
After that you can focus on certain currency pairs that will be active (when the interest rates can rapidly change) in the most appropriate time for you.
Tip #3 Use mobile apps
To work on Forex, it is not necessary to sit in front of a computer the whole day. Install the trading terminal on your mobile to be able to make transactions anytime and anywhere. With the help of a smartphone, you simplify your work a lot. For instance, the mobile MetaTrader 4 terminal allows you to perform trading operations and monitor open positions in any place where there is GPRS or Wi-Fi coverage.
At the same time, the functionality of the mobile application is not worse than on a PC. Technical analysis, financial news, indicators, graphic figures, user-friendly interface and much more are available to you. So use the capabilities of your smartphone to the full extent. Besides, you can get a necessary practice on a Demo account free of charge only by entering your email address. It’s an account with the real Forex market simulation on it.
Evidently, sufficient time must be allocated to learn the basics of Forex trading, but this approach can help you on your road to financial freedom.
Featured image credit: Pixabay