The short answer is yes. But it comes with some ifs and buts. We should acknowledge the fact that forex trading is a serious business that involves risk. These risks can be foreseen as well as some cannot be comprehended beforehand.
The primary foreseeable risk is of incurring losses in a trade. Traders risk an amount from their capital whenever they enter into trades, hoping to earn a profit from the trade. Profits can be equal to the risk taken or even more, all depends on the trading plan.
Forex trading is emotionally and psychologically taxing. It demands traders to be at their best. This is the unforeseeable risk that is associated with trading. Traders that are unable to manage themselves during the ups and downs of the trading journey often face difficulties in their professional life as well as personal life.
Not everyone has the time to trade forex full time. One might be working a job, attending college, or maybe looking after a child or an entire family. But should that deter them from exploring the world of forex trading? No, it shouldn’t, at least that’s what we believe.
1. Trading Plan
As mentioned above, forex trading comes with certain risks, risks that are foreseeable and some that are unforeseeable beforehand. Successful trading is all about managing these risks and not letting them dictate the journey.
Successful forex trading also includes finding a trading plan or a system that allows them to capitalize on the price movement of currencies. This plan must always be based on one’s personality and schedule. We say schedule because the forex market is open the entire day, but it doesn’t mean that traders will be awake throughout the day trading the market.
Talking from a part-time forex trading point of view, traders must develop a plan or a system in which they can devote time completely when they are not occupied by their other commitments.
Forex trading has many types – scalping, day trading, swing trading, positional trading. There are many strategies developed based on each of these types.
Traders that are looking to trade the forex market part-time must explore each strategy of each type and then decide for themselves as to which trading plan will best suit their schedule. Some strategies will require constant monitoring, while some will require lesser monitoring. It is all about finding the right thing for oneself.
We have already mentioned that trading requires traders to be at their best or else their trading experience will take a hit. The right mindset will make everything right.
Trading is not a get-rich-quick scheme. Some traders or trading gurus may make it seem like trading will make an individual rich in just a couple of trades, but this is completely misleading. Trading is a long-term game of short-term trades while managing risk. Profits in the short term when compounded results in big amounts in the long term.
Part-time forex traders will look to forex trading as a means to earn a passive income or an additional income. There is nothing wrong with this approach but it should be noted that looking at forex trading with an aim of getting rich in a short period of time will just make one lose their capital quickly as the risk that they take in order to achieve their aim of getting rich quick will eat up their capital.
In trading, losses are not just defined by losses incurred due to failed trades but also losing out on potential profits by not taking a trade that was a valid one according to one’s trading plan.
Forex trading requires traders to show up consistently and trade the markets according to their plan. This is applied to both full-time and part-time traders. Traders should hold themselves responsible for not taking trades and must consider missed trades as losses incurred.
There is no doubt in the fact that forex trading is not easy, it is often said trading is a business of earning easy money in the hardest manner. Traders can and will slack off at times but this should not happen often. Staying dedicated to the process irrespective of trading the forex market full-time or part-time is very important.
Summing it up
Since the forex markets are open to trading throughout the day, individuals can participate in the market at any point of time during the day. This is one advantage of the forex market that allows even part-time traders to trade the forex market.
Yes, the forex market can be traded part-time. The only difference between full-time trading and part-time trading is the amount of time dedicated to it, the rest stays the same. Hence, part-time forex traders must have the right trading plan, the right mindset, and the dedication that is required to keep them going in this not-so-easy business of forex trading.
Through these blog posts, we have been attempting to debunk and answer some widely asked questions about forex trading. We urge readers to go through some of our posts that have been uploaded earlier.
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