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Disadvantages of Part-Time Forex Trading
Written by: PaxForex analytics dept - Tuesday, 01 January 2019 0 comments
There is literally no profession in the world that does not come with a fair share of challenges in addition to the benefits. If you are venturing into the forex trading career or you have already set your feet on the market, then you should be prepared to deal with some challenges along the way. There are several disadvantages associated with part-time forex trading. The truth is, this is a market that very few people really understand. A major reason why forex trading remains shrouded in mystery is that it receives very little attention on the evening news.
The forex market is not tied to a geographic area, so even when one stock exchange closes, another is opening. This gives you round-the-clock opportunities for trading during the week. However, not all trading times are ideal. Just because the market is open does not mean it's active. In order to make money, you need to trade in an active market. The best trading times happen when the markets that relate to the currency you are trading overlap.
The problem with part-time trading is that trading itself is very difficult and that there are many obstacles that one needs to overcome before becoming consistently profitable. The biggest problem for part-time traders is time. If you only have an hour to commit to trading every day, this can severely limit your options. What if that one hour comes during a trading session that has low volatility?
Strategies like day-trading or catching short-term trends probably don’t make sense right? In that particular situation, you may want to take a look at scalping or maybe switching to longer-term swing and position plays.
To trade in a full-time job for the life of a day trader is very much the dream of a lot of people. However, for the majority of traders, it is all about fitting their day job into the picture. If this is done effectively, you are looking at a very lucrative pursuit. Trading forex part-time can lead to huge deals, and when this is combined with the income derived from an average day job, it can seem like day trading part-time on the forex market while working a full-time job is a no-brainer.
Since time in front of your trading station is limited, you most likely won’t be available during market shifting events or surprises. So, it is even more important for part-timers that you know what’s driving the markets. Most losing traders never put the whole program together, and instead focus too much on one aspect of the whole picture. As long as you start with a good trading system, track your trades, manage your money/risk properly, and continue to work on your psychological discipline, you have a great chance of profiting in the forex market as a full-time forex trader.