Given our ever-increasingly busy lifestyles, it can be difficult to schedule time to trade on the forex market, particularly if forex trading forms your part-time job. Despite your preconceptions of the time needed to invest in trading, there’s no need to spend hours on your computer chair or staring at charts the whole day.
That’s why in this article, the forex experts over at Learn to Trade are offering their how-to guide on how to trade forex around a busy schedule, so you can trade the forex market no matter how little time you feel you have. From trading in low maintenance time frames to trading in multiple pairs, this post will cover it all so that you can refine your trading time – without compromising the quality of your trades.
Consider how often you’re checking the charts
By switching to a different time frame, you’ll need to check the chart as little as two to three times per day. Trading eight-hour charts is an effective way to restrict your trading hours to minimum time and can be used with any chart. We recommend looking for a trade that’s been set up every time a ‘candle’ closes. If there’s no set up, then you may need to rethink what time you are looking at the charts, so that you can land a better opportunity to make a trading decision.
Daily charts often take even less time, so if your schedule is particularly busy, it’s best to stay away from five minute charts. If you trade strategically using these charts, you may well miss many setups in as little as one hour, as there are likely to be more candles in these charts. Using large frames, you won’t need to act quickly and will have plenty of time to foresee a setup before it comes to decision time. This way, you can calculate your move in detail and consequently have a better chance of making a more thought-through decision.
Use price action to simplify your trading
Many budding forex traders may over complicate trading, particularly as there’s so much research and practice involved before they even begin to start trading the market. Complex indicator based systems are unnecessary, so when it comes to forex trading it’s all about making it as simple as possible.
Price action means that you’ll be trading on a clean chart – indicator free. This trading technique allows a trader to read and examine the market to inform successive trading decisions based on the most recent and actual price movement. Therefore, reducing the reliance on technical indicators. This is a low-maintenance system that can be mastered very quickly, so if you’re looking to reduce the amount of time you spend trading on the market, this could be the key to any potential future success.
Trade multiple pairs
Traders who want to limit their trading schedule should trade more pairs. Although this may initially seem counterproductive, we recommend trading between one to five pairs. Low-maintenance trading times characteristically don’t provide you with a lot of trading opportunities. If you opt to work at low-maintenance times, trading in pairs could prove very beneficial as you’ll consequently have more trading opportunities. So, the busier your schedule, the more pairs you should be trading.
Using price action, you’ll be able to analyse your decisions quickly, without lowering the quality of your analysis. So, if you have very little time to trade, don’t be afraid to increase how many pairs you’re trading. With practice, you could find yourself checking all of your charts in less than five minutes.
We hope that with our tips, you’ll be well on your way to improving your trading tactics. The better that you plan ahead using these strategies and more, the more likely it is to pay off. Despite your initial reservations, we have now proven that trading with a busy schedule is absolutely possible. So, it’s time to leave your worries in the past, and focus on implementing these tips to improve your trading efficiency.
John James is a content writer for Learn To Trade, the foreign exchange education and learning specialists – offering a range of training courses to help people understand the currency trading market, as well as its opportunities and risks.