I hope you realised that part-time trading is not as stressful as intra-day trading and much more pleasant experience.
Important factor to succeed in part-time trading is:
Support / Resistance and Price action - especially LONG TERM support / resistance and price action around that support / resistance
What we do is to wait for the price to move towards the support or resistance (S/R) in the chart. Depending on the price reaction near the key levels (S/R) we are going to trade (Buy/Sell) always in the direction of the market reaction.
If the price is moving up (uptrend / bulls), it reaches a top of that trend & then it collapses down (bear), that swing high we mark as resistance level. After few days (daily time frame) or week (in weekly chart), if the price again moves upwards towards that resistance, we look for a trade either to sell or buy depending on the price formation.
Conclusion: we draw support or resistance (level) lines in our charts (daily / weekly or monthly) and WAIT for the price to move towards our levels either to breakout or bounce to place our respective entry trades. as simple as that.
Monday, 8 November 2010
Part-Time Trading - Part 1
Even though, Intra-day trading sound exciting and more fun, Part-time trading is much easier way of trading Forex. Let me tell you why.
Please click here to get the user guide of the chart of my favourite broker.
Please click here to know how to draw lines (support & resistance) on the chart.
- It is easier to search the trade.
- As we use long term charts (daily, weekly & monthly), the movement of chart is slow. So if you find a trade you don't have to worry about the trade as much as you do in intra-day trading. In intra-day trading, you have to make decisions quickly (in fraction of a second when you get a signal) to place trades and also to exit. Where as in part-time trading, you have plenty of time to take a trade and to manage it.
- It is as much profitable as intra-day trading, it is more efficient with less effort.
- Intra-day Trading carries a higher degree of risk than part-time trading because, in intra-day trading, the signals you get are of lower quality because you are using smaller time frame charts, price is volatile, validity of the signals will be very less.
Please click here to get the user guide of the chart of my favourite broker.
Please click here to know how to draw lines (support & resistance) on the chart.
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