For many, the strongest appeal of the forex market is its accessibility. Open 24/5, traders can enter and exit the market at times convenient to them, allowing them to work their trading around their normal day-to-day life. For the experienced trader, this enables them to spend as little as 30 minutes a day on the market while still making a substantial income on the side.
However, reaching the level of expertise where 30 minutes of chart checking a day will suffice necessitates an advanced comprehension of strategy and market movement that, in itself, requires a substantial amount of time and effort to obtain. That’s why today, we’re offering up our best forex tips on how (and why) to make time for the forex market – after all, time is money.
Keep forex at the forefront of your mind
We understand that your day-to-day life is hectic enough as it is. Therefore, an effective way of making more time for foreign exchange trading is subsequently to keep forex at the forefront of your mind, taking every situation as a potential learning opportunity.
This is especially true when consuming current affairs. Whether you prefer to read a newspaper, listen to a podcast or watch the 6 o’clock news, begin to observe current affairs through a trader’s lens, asking yourself ‘how will this affect my trades?’. With everything from geopolitical tensions to natural disasters having an impact on currency valuation, start to view the global news as your daily forex news outlet instead – ensuring you’re up to date with all the latest market context without the added hindrance of making extra time in the day.
Reconsider your watchlist
Managing expectations is imperative to the success of any forex trader. For novices and veterans alike, the sheer size of the world’s most liquid market means that temptation is ripe, with a multitude of potentially profitable trades catching your eye at any given time. As such, it’s common for traders to have a vast array of pairs on their watch list.
The continuous overseeing of a large number of currency pairs is, however, incredibly time consuming. Indeed for many part-time traders, it’s an unrealistic expectation to stay on top of an ever-expanding watchlist. Instead, reduce the amount of pairs you watch and dedicate a set time to check-in on your charts and indicators each day. During this time, pick out the pairs you predict could provide set-ups – there are many trading tools that can assist here, allowing you to set alarms that subsequently notify you if the price reaches a particular level.
Pick an overlap window (and stick to it)
Though forex trading hours dictate an ‘open all hours’ policy throughout the working week, there are periods that boast higher potential profitability than others. In the interest of time efficiency, pick one of these windows and set time aside each day to trade within it.
Deciding upon which window is right for you depends on a variety of factors (which we’ve covered in another blog post right here), however it is fundamentally dictated by your choice in base currency. For any major pairings, the New York/London overlap is your best bet. Running between 1pm-5pm GMT, this 4 hour window not only boasts the longest overlap period of all the windows, but also lays claim to the highest levels of volatility – it’s why more than 70% of all daily trades on the forex market are placed during this time.
Making time to trade forex isn’t always easy, but it’s an absolute necessity to anyone desiring any substantial profitability. As such, look to incorporate these tips into your daily schedule – not forgetting to set 2 hours aside for our free, expert-led industry seminar… you can sign up right here!