As a 24/5 trading platform, traders can enter and exit the forex market at their will. This desirable accessibility means that, for many, forex trading serves as a convenient second source of income worked around their busy schedules. Indeed, for the most advanced forex traders, this can mean spending just 30 minutes a day on their trades while still having the potential to make a profit.
But, naturally, reaching this level of expertise is the result of time and effort spent obtaining both a thorough comprehension of the market and crafting an advanced, focused strategy. That’s why, today, we’re offering up some forex tips to explain why time is money, advising you on how to make the time for forex now in order to potentially reap the benefits later.
Evaluate your watchlist
One of the greatest tools in any trader’s arsenal is the ability to manage their expectations. As the most liquid market in the world, the forex market brings with it a plethora of potentially profitable trades at any given time. As a result, it’s not uncommon for traders to have a multitude of currency pairings on the watch list.
Consistently keeping an eye on an extensive watchlist is, in short, very time-consuming. As such, it’s unrealistic for a part-time trader to expect to stay on top of a constantly expanding watchlist. Consequently, we recommend reducing the amount of pairs on your watchlist, dedicating a set time in which to study them each day. Additionally, we’d suggest picking out the pairs you think could provide set-ups, utilising external trading tools to set alarms that notify you of any significant fluctuations in your chosen pairs.
Ensure forex is never an afterthought
Amongst the busy occurrences of day-to-day life, it’s often easy for forex to take a backseat – but keeping forex at the forefront of your mind is a great way to develop a trader’s mentality at all times.
Primarily, this is applicable to the consummation of current affairs. Whatever your chosen medium, we suggest you begin observing current affairs through the lens of a forex trader, considering how external events may affect your trades so that you can act accordingly. From geopolitical tensions to economic instability, there’s a whole range of external factors that can influence currency valuation – so start viewing the 6 o’clock news as your daily forex news outlet. That way, you can ensure you’re up to date with all the latest context without having to make any extra time in your day.
Choose an overlap window
The forex market’s open-all-hours policy means you can trade at any time throughout the working week. However, certain forex trading hours are more profitable than others – these are known as overlap windows (we’ve covered this in further detail in another blog post, which you can read here). To be more efficient with your use of time, pick one of these windows as your primary trading hour and set aside a block of time each day to trade within it.
The right window for your trade is dependent on a multitude of factors, but it’s primarily dictated by your base currency. If you’re trading in major pairings (which we thoroughly recommend to any novice), the New York/London overlap is the best one for you, as it constitutes the longest overlap period and boasts the highest levels of volatility. As a result, more than 70% of trades on the forex market are placed during this window.
It’s not always easy to make the time for forex, but it’s a requirement for anyone looking to make substantial profits from the market. To find out more about how you can make the most of your trading time, why not sign up to our free industry seminar right here?