If you’re new to forex, you must know that forex is the world’s currency market. Generally, the market provides users with the opportunity to increase their savings by merely trading on the difference in several currency exchange rates.
Forex has been in existence since the year 1977. Although back then, trading was a bit slower because negotiations between agents of different countries were all carried out on the phone. Notwithstanding, a daily turnover of about $5 billion was still being achieved.
However, with the birth of the internet and improvements in technology, forex trading has experienced a rapid spike. More people now trade and earn more.
Presently, the forex market has grown so large that several brokers and software traders can use it to trade. One unique feature of forex is that you can work from home without quitting your present job.
We’ve provided few tips on how to start part-time trading on forex as an alternative income.
· Learn Forex Trading Online
Even though it is possible to earn a lot from trading forex, it is also easy to lose your money. To trade forex successfully, you will need to spend time to learn and continuously improve your trading skills. Learning forex online is convenient and allows you to learn at your pace.
You must realize that trading forex as an alternative income does not exempt you from the stage of learning and continuous development. Trading on forex on a part-time basis, you will need to study and work harder. Such studies will help you learn the best trading pairs, the best time to trade, best strategies to use, among others.
Despite the many trading materials, both free and paid, ensure you select a single strategy and build on it. Also, make sure you use brokers that have lots of flexibility and convenience, so it favors you.
· Pick the Most Suitable Time and Session
Since the forex market is global, it has numerous trading sessions and time. That said, each of the trading sessions comes with its unique features as well. As a result, you will need to consider your work schedules, strategies, and the session’s characteristics before selecting your most suitable time and session.
The four common trading sessions and time on forex are:
The American session opens and closes at 13:00 and 23:00, respectively. A new activity of currencies always starts to occur at the beginning of the American session. The activity is often linked to the start of American banks’ work as well as the European financier’s return to work from lunch.
The Asian session begins and closes at 23:00 (GMT+0) and 9:00 (GMT+0), respectively. Also, it features moderate currency volatility and a reasonably calm market position.
The European session starts and closes at 6:00 (GMT+0) and 16:00 (GMT+0), respectively. The session begins with a moderately calm market, gets to a peak, and then falls with the London Stock Exchange opening.
Most times, crucial economic news from countries in Europe characterizes the opening of the European session. It also helps to provide some dynamics in currency movements.
The Pacific session begins and closes at 20:00 (GMT+0) and 7:00 (GMT+0), respectively. It often has the least impact on the forex market; hence the market tends to move flat during the Pacific trading session.
Additionally, you can then pay attention to a few currency pairs that are active in the most suitable time for you.
· Use Mobile Applications
You will need to use mobile applications if you must trade on forex as a part-time alternative source of income. It may be difficult always to have the opportunity to sit before a computer trade due to your other work engagements.
Install the appropriate trading medium on your mobile device as it will help you to trade anywhere and anytime. A smartphone helps to make your work easier. For example, mobile both MetaTrader 4 and MetaTrader 5 terminal allows you to carry out trades and monitor the market directly from your smartphone, provided it has access to the internet.
It is worth mentioning that you also get to enjoy the same functionality, technical analysis, indicators, graphic figures, and user-friendly interface found when using a computer. You also have access to a demo account for your practice sessions.
Overall, it is possible to trade on forex as a part-time alternative source of income. We have provided you with tips you should follow if you want to succeed while trading forex on a part-time basis.