Currency trading is an exciting new market
for ambitious individuals who would like to test their skills in a
truly competitive environment with potentially very significant rewards.
It is not simple to become proficient in forex, you need to commit some
time, and make some effort in learning about and practicing trading,
before you achieve results that are favorable to any degree. This fact
sometimes scares potential traders to such an extent that they choose
not to entertain the idea of currency trading at all, due to time
limits, and the constraints of offline life. In this article, we are
going to take a look at the plausibility of a part-time forex trading
experience for the average person.
Perhaps the most exciting feature of the forex trading experience is
the almost unlimited degree of flexibility involved. The fractal nature
of charts means that, ignoring broker costs, trading at long or short
term is essentially the same business from the technical point of view. The fundamental
point of view, on the other hand, implies that it is possible to apply
entirely different methods as a long or short term trader.
Thus one can be a part-time forex trader on both a long term and a
short term basis, but with different options available, and differing
approaches being necessary. A part-time short term trader must follow a
purely technical approach and apply money management methods with rigor
and discipline. In this case the time of entry does not matter that
much, but we strongly advise that periods of high volatility be avoided
unless one has an ample amount of time available to be devoted to the
absorbtion of the steady stream of news flooding the market. As such,
the part time trader would probably thrive when the market is calmer,
trading is subdued, and technical factors dominate, a scenario that is
most often encountered towards the closing hours of the market.
A long term part-time trader, on the other hand, must choose the
time for entry into the market very carefully. Since a position held on
the long term requires strong conviction and analysis, it is crucial
that a period of deep and thorough analysis precede the actual trading
action. The advantage of fundamental, long-term trading is in its
greater potential for very significant rewards, and also for reduced
risk, contrary to common assumptions. A long trader must use low
leverage since he is going to keep his position dormant for a long time,
and to have it survive volatility, high or even moderately high
leverage has to be avoided, which makes potential losses smaller,
provided that clear criteria exist for the closing of a position.
It is not really possible to decide which firm is more suitable to a part-time trading experience merely by reading online forex broker
reviews and going through ratings. You need to go and test the firm
actively for a period. The part-time trader demands a high degree of
accuracy and reliability from the broker because he can't afford to see
his trading platform fail during the comparatively infrequent periods
when he's online. So make your choices wisely; but part-time trading is
indeed a workable approach with some practice.
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