Do You Need Trading Routine For Profitable Trades? - [Ultimate Breakdown]
Posted by sgtmarkets from the Finance category at 08 Apr 2021 11:17:48 am.
In one word, Yes! Being a successful trader, you must follow a trading routine. If you are following this routine, you can identify your ups and downs in trading. So, without wasting any time, let's dive into the main point--
I have set my own goals in a routine and I would like to share them with you.
- Weekend routine: watchlist
For me, every trading week starts the weekend before. Making the trading watch list probably takes me about an hour or two. As I mostly trade 4H charts, I plan the setups I’m interested in on the weekend and create a watch list for the upcoming week.
Also Read: 7 Best Forex Trading Tips That Needs In Every Traders Life!
Rigorously doing this every week gives me a group of setups to focus on. During the week, I’m not distracted by anything else and there’s no need to “hunt” for setups. Tradingview lets me set alerts on the levels where I want to take action or be notified. So during the week, I require little actual chart screen time.
- Daily morning routine: prepare for the day
Every morning, I prepare for the trading day. The whole process usually takes me between half an hour to an hour, so it’s not too time-intensive. I start off with 20 minutes of meditation, as it clears my head and allows me to focus for the upcoming day.
Afterward, I have a first look at the markets: I check my open positions if I have any and have a look at the global market news. When I have a general idea of global financial news, I move onto the economic calendar for the day. I look for high-impact economic news releases and note them down in the same trading notebook where I wrote down my watchlist pairs.
Next, I move onto my watchlist. I look at what happened overnight in all the pairs I’m following for that week. During this routine, I take note of things I find interesting: big moves, patterns, new levels, etc. I might create pending orders for setups that have progressed far enough to warrant a trade.
- During the day: monitor and take action
During the day, very little work is actually involved. The reason is threefold:
1. I have my weekly watch list
2. I know how I want to play potential setups as they unfold
3. Alarms are set every 4H
If I plan to take a trade, I will first go over my trading checklist and make sure I can check every box on there. After I take a trade, I will note it down in my trading journal, together with a detailed report of why I think this trade is valid and how my emotions are (confident? greedy? uncertain? etc). If you wait to do this, a lot of the finer details are lost so I do this right away.
- End of day routine: review and trading journal
At the end of the day, I will do two things:
1. Run through my watch list and check what has happened for the day
2. Review any trades I took and finish entering them in my trading journal
I keep this short and sweet since I mostly take my evenings off. This trading routine will take me around half an hour.
- Monthly routine: review trading month
The header says monthly, but I do this every 1, 6, and 12 months. This is just a general review of my trading performance in the last month(s). Every 6 months, I will re-evaluate my trading strategy and check if it still works in the current market. This is also the only time where I would consider making big changes to my trading system.
Basically, this is a review moment to see if I’m still on the right track. If so, good. If not, how can I readjust in order to get me back on track?
Having a trading routine will magnify your work more effectively and you can able get good trades. Also, you can buy VIP forex signals to ensure your profits 100%. But, all said and done, you need a forex trading routine of course.