You can supplement your income by part-time forex trading. Oct 16, · 11 min read. Click here to read our full disclosure. Many people try to balance their careers with foreign exchange market aka forex trading on the side. However, due to myths about forex trading, they perceive it as difficult or impossible to do.

I will share my journey into supplementing my income with trading forex and how I did it in 12 months. In the first months, you should start laying out how much time you might have to spare. Your existing work might already be taking up a ton of your time, so you need to know how much you can spare for your study of the forex market.

After I signed up for a course about forex, I analyzed how much time I could spare for studying without harming my work and social life. You need to be very careful with how you balance your life.

Do not spend so much time studying forex that you get fired. Without a job, where will you find your investment capital? Similarly, remember to have a social life. Otherwise, you might end up with lots of cash but nobody to enjoy it with.

I used to work from 9 am to 5 pm. It sounds a lot now that I barely sit to work for 5 hours a day. We had a minute break at 11 am, an hour for lunch, and another 30 minutes at pm. These breaks are what I planned to use for studying forex during my workday. I also had a 7-hour window from the time I got home to when I settled into bed. This was enough time to spend an hour with some close people, make dinner, watch a program, and then dive deep into studying the forex market.

The other spare time that I had was the weekends. Luckily, I did not work all weekend. I made Saturday my main day of planning, studying, and polishing all that I read through the week.

After I was done studying, this was the day that I did the chart analysis to guide me through the following week. My Sundays were for friends, family, gardening and anything else, but not for trading forex! Now, with my spare time highlighted, I came up with a personal timetable.

I looked at my course and saw how much time was needed for each lesson. I found out that it would take me 2 months to finish the course and learn a solid trading strategy. Depending on your schedule, you might take shorter or longer to finish your forex trading studies. However, you should be more than comfortable if you can have a schedule similar to mine. Yes, as a trader, you must keep a trading journal! A busy adult knows how easy it is to forget the most critical information.

To minimize this risk, keep a trading journal alongside your personal diary. Thanks to an amazing mentor, I also understood that demo practice trading is mandatory if you are serious about making profits from trading. This was kind of intimidating. Trust me, if it was not for my mentor, I would have quit my job way too early. However things in the actual trading grounds are quite different than they are on paper. In the real market, you need to get used to scary things such as making an incorrect technical analysis, risking more than necessary, dealing with unexpected market movements, uncertain trading times, and so on.

This is why you need to demo trade, or a test trading account that has virtual funds. The account works like a real account would, only that you do not make or lose real money. Make sure to sign up with a broker that offers you a demo trading account such as Mitrade. It took me approximately three months to get used to playing around with my trading platform, applying my lessons in actual trading, understanding money management, and so on.

I used the same timeline to do my demo trading and found that it was a more enjoyable way to study than reading. In a nutshell, by the end of my demo period, I had begun to develop my own trading style and could trade on my own. I knew what to do, what to avoid and, most importantly, I came up with trading systems that made me some profits. By month six, I was done with my demo and was sure that I could trade and make profits without fear or over excitement.

Sometimes the desire to quickly increase the deposit leads traders to ignore risk management rules. Therefore, to find a balance between compounding your forex account and risk, use the Forex compounding interest calculator. How to compound your forex account? You can try yourself and start with the Forex trading systems covered in the article Three most effective Forex trading systems.

Did you like my article? Ask me questions and comment below. Skip to content Home Trading Forex 12 Month Forex Trading Plam Calculator. If you want to know how to calculate forex profit, you can use the financial Forex profit calculator to: Calculate compound forex interest earnings based on increasing the deposit balance by adding the profit received. The trader calculator also calculates the yields, including withdrawals or depositing. Find out how soon you can achieve profit targets with or without reinvestment.

The article covers the following subjects: What is a forex compounding calculator? How do you calculate compounding interest? Forex profit calculator Importance of a forex compounding calculator Forex compounding calculator and trading strategies Forex compounding calculator FAQs What is a forex compounding calculator? If you want to learn how to use the MT4 strategy tester, read the articles about MetaTrader 4 Strategy Tester and FX Blue trading simulator review. I also recommend you to learn about the methods to analyze the performance of trading systems.

You can read more in the article devoted to the Rules for evaluating the trading system and its equity. There are two questions: What if the profit is also put into trading — reinvested? This will allow you to increase the position volume and earn even more. And with what frequency then to carry out reinvestment — once a day, a week, a month?

Is the procedure worth it? The constant withdrawal of profit in Forex at least up to an amount equal to the starting capital minimizes risks. How much more will you earn with the reinvestment strategy, and does it make sense to risk and not to withdraw the money from time to time. Forex Compounding Calculator is a tool that helps traders calculate the earnings according to the specified parameters: Initial deposit.

Monthly profitability. Investment period. The number of investment periods. How does forex compounding calculator work? The compounding interest is calculated according to the following: Where: S is the amount that the trader will receive at the end of the investment period. D is the initial deposit amount. r is the expected annual yield of trading. You can take this value in the results of the testing on the historical data.

n is the number of reinvestments during a year. t is the number of years. Read: How to Become a Millionaire Trading Forex. Read: Charts Traded by Blane Donji Forex Tradind. Forex compounding calculator FAQs What is Forex Compounding? The trade amount depends on: The asset type and the exchange rate. Leverage and trade volume. Risk level, you choose. When you calculate the maximum allowable trade volume, you should take into account the following input parameters: Deposit amount.

Asset type and the current exchange rate. Maximum leverage. Acceptable risk level. Target profit. Aggressive traders could increase the risk level contrary to risk-management rules to accelerate the deposit faster and increase the profit. You enter into LiteFinance investment compound interest calculator the following data: Amount of the initial deposit.

Investment period — a fixed period over which the total profit is calculated. Expected profitability over the period, at the end of which you will reinvest. The dimension of the period should be the same as the dimension of the investment period.

If the entire period is twelve months, you enter the profitability over one month. If the entire period is calculated in weeks or days, you specify the profitability over one week or one day, like a forex daily compound calculator. The expected amount of depositing or withdrawal. You enter the average value over each reinvestment period in the profit calculator forex. What is compounding in forex? Reinvest the profit. Thereby, you will increase the initial deposit, which, in turn, will yield a greater return.

The profit amount will grow not in arithmetic, but a geometric progression, and the forex interest calculator will instantly display it. Use deposit acceleration strategies like averaging, Martingale, pyramiding. Enter trades with the maximum leverage and maximum lot. Provided you are lucky and can professionally analyze the market; such a strategy can help you multiply the initial deposit quite rapidly.

However, the risk-management rules strongly suggest not to do it. It ends at the close of the business day in Tokyo, Japan time. This is when the Tokyo Stock Exchange TSE closes. The European Forex trading session begins at the start of the business day in Frankfurt, German time. This coincides with the opening time of the Deutsche Börse, which is the German Stock Exchange. It ends at the close of the business day in London, UK time. This is when the London Stock Exchange LSE closes.

The US Forex trading session begins at the start of the business day in New York, US time. This coincides with the opening time of the New York Stock Exchange NYSE. It also ends at the end of the business day when the NYSE closes.

If you have an Android smart phone, you can download this FX hours app. It shows you when each Forex trading session opens and closes in terms of your local time. See the screen shot below. Here is something similar for iPhone users. It is because more participants are coming online and the number of transactions tends to increase. This creates more supply and demand and pushes the price up or down.

When trading sessions overlap, the market is more active, liquidity increases and the price becomes more volatile. You want to be capturing significant price trends to maximize your potential to profit.

When the price trends and closes higher or lower for the day or week, it usually starts earlier in the trading session. You also want to be able to get in and out of the market easily.

So the best times of day to trade Forex is when it is highly liquid. Having said that, the Forex market is the most liquid market in the world. You can buy or sell at any time. Spreads are usually tighter at these times too, which reduces your trading costs.

This is another reason why these times are the best times of day to trade Forex. Since there are three main trading sessions, there are three times each day that are the best times to trade Forex.

Each trading session is not necessarily and equally the best time to trade though. Also, this does not mean you should trade every day or at each of these times. However, you will observe that these times often do provide the best times to trade. When you optimize your market timing and the entry and exit price, you can limit risk and maximize your potential to profit.

The image below shows the best times of day to trade Forex during daylight saving time. You can convert these times to your local time or follow the time in the market watch window.

Which means volatility will likely be higher or lower at certain times of the day and during each trading session. Volumes, liquidity and volatility are also different between currency pairs. Some currency pairs are naturally more volatile than others. The most liquid and most volatile times to trade under normal market conditions is when the EU and US sessions overlap.

Spreads are tighter during these times and the price tends to trend better too. In my opinion, the best opportunities can be found at the beginning of the US session.

The second best times of day to trade are at the beginning of the EU session and the London open. The least liquid time is during the Asian session. The Asian session is also categorized by lower volatility and wider spreads. This is particularly the case shortly after the market rolls over. If you open a trade around this time, your transaction cost will likely be higher.

In my opinion, the Asian session is the third best time of day to trade Forex. The market tends to consolidate and become range bound during this time. Of course, this all depends on your trading style and strategy….. Now that you know when to look for the best trading opportunities, also consider what currencies to trade. Ideally, you would want to be following currencies that are active for the session.

For example, during the Asian session, consider looking for trading opportunities in the AUD, NZD and JPY. These are the most active trading sessions so it will be.

You can supplement your income by part-time forex trading. Oct 16, · 11 min read. Click here to read our full disclosure. Many people try to balance their careers with foreign exchange market aka forex trading on the side. However, due to myths about forex trading, they perceive it as difficult or impossible to do.

I will share my journey into supplementing my income with trading forex and how I did it in 12 months. In the first months, you should start laying out how much time you might have to spare. Your existing work might already be taking up a ton of your time, so you need to know how much you can spare for your study of the forex market. After I signed up for a course about forex, I analyzed how much time I could spare for studying without harming my work and social life.

You need to be very careful with how you balance your life. Do not spend so much time studying forex that you get fired. Without a job, where will you find your investment capital? Similarly, remember to have a social life. Otherwise, you might end up with lots of cash but nobody to enjoy it with. I used to work from 9 am to 5 pm. It sounds a lot now that I barely sit to work for 5 hours a day.

We had a minute break at 11 am, an hour for lunch, and another 30 minutes at pm. These breaks are what I planned to use for studying forex during my workday. I also had a 7-hour window from the time I got home to when I settled into bed. This was enough time to spend an hour with some close people, make dinner, watch a program, and then dive deep into studying the forex market.

The other spare time that I had was the weekends. Luckily, I did not work all weekend. I made Saturday my main day of planning, studying, and polishing all that I read through the week. After I was done studying, this was the day that I did the chart analysis to guide me through the following week. My Sundays were for friends, family, gardening and anything else, but not for trading forex!

Now, with my spare time highlighted, I came up with a personal timetable. I looked at my course and saw how much time was needed for each lesson. I found out that it would take me 2 months to finish the course and learn a solid trading strategy.

Depending on your schedule, you might take shorter or longer to finish your forex trading studies. However, you should be more than comfortable if you can have a schedule similar to mine.

Yes, as a trader, you must keep a trading journal! A busy adult knows how easy it is to forget the most critical information. To minimize this risk, keep a trading journal alongside your personal diary. Thanks to an amazing mentor, I also understood that demo practice trading is mandatory if you are serious about making profits from trading.

This was kind of intimidating. Trust me, if it was not for my mentor, I would have quit my job way too early. However things in the actual trading grounds are quite different than they are on paper. In the real market, you need to get used to scary things such as making an incorrect technical analysis, risking more than necessary, dealing with unexpected market movements, uncertain trading times, and so on.

This is why you need to demo trade, or a test trading account that has virtual funds. The account works like a real account would, only that you do not make or lose real money.

Make sure to sign up with a broker that offers you a demo trading account such as Mitrade. It took me approximately three months to get used to playing around with my trading platform, applying my lessons in actual trading, understanding money management, and so on.

I used the same timeline to do my demo trading and found that it was a more enjoyable way to study than reading. In a nutshell, by the end of my demo period, I had begun to develop my own trading style and could trade on my own.

I knew what to do, what to avoid and, most importantly, I came up with trading systems that made me some profits. By month six, I was done with my demo and was sure that I could trade and make profits without fear or over excitement. My mentor let me start and I felt like a small kid that had been left by his parents in the middle of a jungle infested with tigers and lions. In fact, that is what the forex market is; you either outsmart other traders and take their money or they will take yours!

Going live on a trading platform is the best but also the scariest part of the trading journey. It is the last stop before you either fail or succeed. Here are some deciding factors that I kept in mind when I reached this crucial step of supplementing my income:.

I needed to set a target dollar amount at which I could consider the journey a success. Personally, I wanted to develop a trading strategy where I would be able to at least the same amount from the foreign exchange market every month. This would be enough consolation in the event that I quit my job or I got fired. At least my life would remain the same! Next, I knew that to make an amount similar to my salary, I had to earn at least a quarter of my monthly salary every week.

As I would later learn, setting such a target can be unrealistic in forex trading. This is because the market might give you more or less than you expected. Feeling disappointed, I consulted my mentor and he gave me some very helpful tips:. The biggest lesson I learned about the forex market came during months seven and eight. Currency Trading - The act of exchanging different national currencies against each other as exchange rate pairs. Currency Pair - The quotation of two different currencies, with the value of both currencies being quoted against each other.

Base Currency - this represents the amount of the quote currency that you would need in order to get one unit of the base currency. In the Pips first, money later approach, you work on making as many pips as possible, then convert them to money later. The account was supposed to have a leverage of and all my trades were to be taken using lot size 0. What that means is that if I took a trade using lot 0. With this, I would have to make a loss of over 2, pips to blow the account.

This is impossible if a trader adheres to the rules of proper money management. For the next two months, I concentrated on making as many pips as I could following the Risk to Reward Ratio approach. In it, you risk less than what you stand to gain. In the long run, you end up remaining profitable even if your losing trades are more than the profitable ones.

In month nine, my mentor and I were both happy with my progress. I was averaging at least 50 pips of profit every week. They might sound too little, but any experienced trader will confess how hard it can be to make an assured 20 pips a week. We did some auditing and found that in some weeks, I made over pips, and, on some, I made as little as 10 pips.

On my worst week, I lost 20 pips in total. However, collectively, the wins overshadowed the losses and I always had pips of profit in each of the two month period. In other words:. I had not risked too little or too much. So, what happens if I used lot 0. I would have my salary already! When studying forex, you will come across one lesson that talks about trading psychology, and you will see how emotions can make or break a trader.

From my calculations, I decided that I could comfortably trade using lot 0. Experience pays when it comes to forex trading. I made losses, but I knew the profits would come and cover me; and they did! On weekends, early mornings and in the evenings, I would sit at my trading desk and analyze the charts.

I would then note down the best potential setups and keep watching them when I was working. If your broker supports mobile trading, you can also watch your setups unfold from anywhere at any time. One year down the line, forex had become my main career and my day job was my side hustle. This is when I finally resigned from work to focus on forex full-time. There are several options that you can use to do part-time trading. At the end of the day, several factors such as the nature of your work, the available time, and your preferences determine which one is best for you.

Swing trading, the method I used, means that you use the higher time frames to conduct market analysis and take long-term trades. I did this during the mornings and evenings as well as on Saturdays. This is an alternative to day trading, or scalping, which requires you to be in front of your desk all day hunting and waiting for setups. If I had started day trading, I would have probably been caught and fired!

Instead, I used the daily and weekly time frames to analyze the market. From this, I would need to check the 4-hour timeframe for my trade entries and exits. Therefore, I had an alarm set each time a 4-hour candle closed.

This is want you want as a trader. You specify the amount of the initial deposit, monthly profitability, and the number of re-investments. You want to be capturing significant price trends to maximize your potential to profit. We did some auditing and found that in some weeks, I made over pips, and, on some, I made as little as 10 pips. Forex trading times and sessions can be used as entry and exit signals. Any currency that is paired with the USD or CAD would probably be the best currency pairs to trade at night. The rule of 72 is favorable for calculating when your money will double at a given interest cost.

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