Many people think that trading foreign exchange (FX) requires a lot of time to research the market and to identify trading opportunities.However, because Forex trading is available around-the-clock, part-time day traders can more easily profit from currency fluctuations since they are not constrained by the hours that an exchange is open for business. Therefore, forex trading can be convenient for individuals who cannot afford to invest large quantities of time on trading.

Why do Forex Trade in Part-Time? 

Part-time trading enables a reduction in the potential for "under- and overtrading". Undertrading keeps money from being spent when it would be most advantageous to benefit from potential trading opportunities. Full-time traders frequently struggle to understand the financial data available to them. This could be terrifying due to its ambiguity. The markets are viewed more clearly and there is less ambiguity for a trader who merely trades. There isn't much time spent, which gives people extra time for social activities.

How Part-Time Traders Can Streamline Their Workflow

For obvious reasons, practicality is essential for a part-time trader. The list that follows outlines several straightforward methods that can be used to speed up trade.

  1. Find a basic plan of action
  2. Adapt strategy to the situation at hand
  3. employ entry orders
  4. Repeat!

Effective Forex Trading Strategy of Part-Time Traders

If you don't have much time, there are a variety of approaches you might take. The "Simple DNC Breakout" method is described below. Even if you have never traded forex before, the instruments used to pick trades for this technique are extremely simple.

You might be wondering how a trader can successfully locate excellent trades if they are not always watching the market, so let me address that before I go into further detail about the method. The fundamental idea behind this strategy is that the trader would put in orders to join the market at key price points.

This will be the signal to place the trade when the market trades through these values, and the resting order will handle the entry and exit automatically.

 

As a result, this kind of technique offers the following 2 noteworthy advantages.

i. No need to baby-sit the trades:

Give the market permission to enter these trades at the predetermined pricing by placing orders to do so. It is convenient for part-time traders because many of these trades will initiate without the trader paying close attention to the market.

ii. This strategy can keep you out of ‘some’ losing trades:

This does not guarantee that every trade will be profitable. The market never trades at the strategic price point, therefore it frequently happens that a trading concept is erroneous but the deal is not executed. In other words, your market entry is not triggered, keeping you out of the losing transaction.

Refine Your Trading Skills

  • Uncertain about the precise trading strategy to use? By examining your personality which strategy fits your personality the best.
  • Different trading styles and approaches exist. Find by analysing which style best suits your personality.
  • Trading psychology is important, especially having faith in the chosen strategy.
  • Knowledge is power: Without the right understanding of how to study a market and identify value among the available assets, you won't succeed as a trader. To learn best about trading markets get in tuch with trading agency or make a purchase of traders development course

DNC Breakout Strategy

Tools Needed:

  • A price chart with the daily bar set to it
  • The Donchian Channel indicator (DNC)
  • a strong trend 
  • 30 minutes to find key price points

Open a price chart for a currency pair that has been experiencing a significant trend to get started. Every bar or candle on a daily price chart corresponds to one day's worth of price movement.

Add the DNC indicator to the chart next (most charting packages include this for free). The DNC indicator will determine the price's highest high and lowest low over the previous X bars. Set the DNC indicator's input value to 8. The highest high price and the lowest low price throughout the course of the last eight trading days are as follows:

Identifying the Strategic Price Points

Filtering transactions for long positions is essential because the AUD/USD has been in a strong upward trend. On the other hand, in a significant downtrend, the filter would only allow sell trades. The trade setup process only requires 4 easy steps.

Buying Rules:

  1. Use the upper DNC line as a strategic entry point into the buyer's position (green square).
  2. Stop loss is the lower DNC line.
  3. Set the stop loss manually to trail at the lower DNC line.
  4. When the price reaches the lower DNC line, close the position (pink square).
  5.  

Selling Rules:

  1. The crucial price point to enter a sell trade is the lower DNC line.
  2. As a stop loss, use the upper DNC line.
  3. At the upper DNC line, manually track the stop loss order.
  4. When the price reaches the upper DNC line, close the deal.

Part-Time Forex Trading: a Summary

It's incredibly simple to integrate part-time trading into your already hectic schedule. People don't have to stop trading because of time commitments, whether related to work, education, or family. A trading routine that is well-balanced can be achieved by using the straightforward method described in this blog.