Selasa, 09 Maret 2021

How to Trade Currency as a Side Hustle

How to Trade Currency as a Side Hustle

Some people claim that you’re not living an exciting life without a side hustle. If you are looking for a hobby that can earn you a small amount of income, you can try forex trading in your spare hours. 

Is forex trading risky? It depends on your expectations. In general, forex trading isn’t a road to getting rich quickly. It takes work to learn, explore, and analyze how the forex market works. The bulk of the work comes from choosing your currency pairs, and deciding when to enter and exit the market. 

But, once you’ve made your decision, you need to do no additional work other than to ensure that you are heading the right direction in your trade. Adding stop loss orders will automatically protect you from further loss of investment. 

It is therefore the perfect side hustle for you since it’s an activity that is not time intensive.

Start with a demo account

There is no better teacher than experience. However, you don’t want to risk your money before you have real experience. Demo accounts allow you to exercise your skills using virtual money. 

Meanwhile, you should spend a few months to gain familiarity with major and minor currency pairs, and concepts such as market price levels, breakouts, economic news, and volatile periods. Your side hustle will most likely allow you to employ the swing trading techniques over a range of a few days to a few months. 

Use common currency pairs

The major currency pairs are all paired with the US Dollars (USD). At the moment, the US is a global superpower with a healthy economy. This makes the US dollar stable. 

Note that “stable” doesn’t mean “not volatile”. Stability just means that there is a very small chance that the country will experience hyperinflation and debt crisis. Moreover, stable currencies have recognizable market price levels to help you sharpen your timing.

Stable currencies are still competing against one another for dominance, and are therefore volatile. With the major currency pairs, you can expect to earn or lose on average 50 to 500 pips over a range of a single day to a few weeks. 

Follow a community

Don’t trade alone. At FBS online forex broker, for example, you can find discussion forums that are rich in trade ideas coming from some of the world’s top winners. Choose your mentor, listen to them, and ask questions.

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