In today forex faq, we have a question from one of our fellow traders who had a day job and therefore have limited time to trade everyday.
Below is the question:
What are the best trading strategies for someone who has limited time to trade (once or twice a day)?
I can totally understand the situation that most of you guys are facing as most of the people here in my blog are working a day job in the morning and can only trade at night after your working time.
There are 2 things you need to bear in mind when selecting a strategy if you have limited time to trade.
For the question above, the trader wanted to have at least 1 trade per day and therefore the only strategy I can recommend is the scalping strategy. The scalping strategy trades on the lower time frame and therefore will give you more trading opportunities as compared to other strategies that trades on the higher time frame.
However the cons of scalping strategy is that it has a low risk reward ratio which means that you must have more winning trades than losing trades in order to make money. For some scalping strategy, you will find that you still lost money when you have equal number of winning and losing trades.
For those of you who had limited time to trade everyday but is only looking to have 1 to 4 trades per week. I will suggest that you trade on the 15 or hourly chart using day trading strategy.
There are several strategies that you can use to achieve 1 to 4 trades per week. You can use the BTB strategy or the trend strategy to trade. The advantage of such strategies is that it has a high risk reward ratio which makes it a more profitable than the scalping strategy. Even when you have equal number of winning and losing trades, you will find that you are still profitable.
For me, the whole purpose of trading is not a matter of the number of trades per day. It is how much money I can make by the end of the month.
I dun mind having 5 trades per month with good risk reward ratio as it can sometimes be more profitable than strategies that provides 2 to 3 trades per day but have a lower risk reward ratio.
When I am new to trading, I am eager to get into action and therefore wanted to have trades everyday. As my experience in trading increases, the number of trades per day does not bother me at all. I am more interested in the profits at the end of the months than the trading frequency.
Therefore the choice is still up to you. What strategies you should use to trade depends on your own preference of trade frequency and time available to look at your chart.