Effectiveness of Daily Trading Routine
Preparation is an important aspect that determines whether to become a successful trader or not. Studies show that successful traders and all other professionals tend to follow a certain routine or plan. There are two aspects of routine, namely the existence of time management routines and routines on the trading side.
Understanding and Benefits of Morning Trading Routine
Morning trading are some of the things a trader does before making a trade. There are several types of traders, so the first thing a trader needs to do is determine the type of trader:
- There are some traders who wake up and go straight to the charts and start trading.
- There are some traders who wake up, do their morning exercise, and then start trading.
- There are some traders who wake up, spend several hours watching the news before traders start trading. Traders spend a few minutes looking at the news, with the aim of getting information about what is happening at night.
The morning trading routine has several benefits, namely:
- Will help traders to be organized. This means that the trader will always start
- Having a routine will help traders deal with market pressures. For example, it will help traders have peace of mind when there is too much news on the financial markets.
- Helping traders to know what traders want to trade.
How to Create a Good Morning Routine
There are several steps that traders need to take when creating a morning routine:
Read and Understand Financial Markets
Beginner traders are advised to take the time to read and understand the financial markets. There are many resources that will help traders achieve this namely books, videos, podcasts and financial websites. The time decided for trading should be consistent. For example, if a trader decides to trade in the European session, the trader will be able to study and understand the behavior of that session.
Have a Strategy
The second thing is to make a trading strategy. Some of the strategies that traders can use include:
- Scalping
- Day trading
- Long term trading
The strategy that traders use will determine the trader's morning routine later. For example, if a scalper, the trader does not need to know more about the news. In this case, the trader's routine may be about checking the currency pairs that are making big moves.
Doing Checklist
Traders should have a checklist of what traders should do before starting trading. This checklist should have everything that needs to happen before a trader starts trading. For example, a checklist may suggest:
- Only open trades when no major economic data is expected.
- Just start trading certain currency pairs, Commodities or stocks.
- Start a trade when certain criteria are met. For example, it can tell the trader to start a trade if the short-term and long-term EMAs cross.
- The exact level at which traders are required to place stop loss and take profit traders.
Continuous Test
Finally, the trader should test the trader's routine by checking how it works for the trader.
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