TRADING YOUR WAY TO CONSISTENT PROFITS WITH A DAILY ROUTINE Having a daily routine is crucial to any successful trader, whether they trade futures, stocks, options or the forex market.
The daily routine used at the School of Trade has helps hundreds of traders use a simple and concise 3-step plan, in turn leading to more consistent profits.
No matter how busy your day is outside of trading, sticking to a plan is the first step to becoming a professional trader.
This is done by performing the daily routine, day in and day out, CONSISTENTLY.
Below are 3 EASY steps to follow for a better daily trading routine: Step 1: IDENTIFY When you begin your trading day, it's crucial that you try your best to identify specific roadblocks that might come up throughout the trading day.
It can be easy to get quickly overwhelmed by all the information available for traders, but for starters you might want to consider just focusing on important market changing events.
Specifically News Events that are related to the market(s) you trade.
Find out the exact time during the day so you can be prepared for increased volume in the markets.
Another idea to consider is watching the Pre-Market and/or reviewing what has occurred to price since the open of the market (We will go over the benefits of 24-hour charts VS daily charts in an upcoming article).
When you do this it makes it very easy to: Identify what type of market it is today; trending (higher highs, lower lows) or sideways (double-tops and bottoms etc.
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This can help tremendously when you're choosing which type of set-ups you're going to use throughout the trading day.
Step 2: ADJUST Trading is all about being prepared for what might occur in the future, and adjusting accordingly.
Of course no one can predict the future, but you can help your probability of success by knowing specific times throughout the day not to trade..
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(News events, meetings etc.
).
What I've found helps me the most is to set an alarm clock, that way you know ahead of time when to sit on the sideline of the markets.
Also, marking key Support & Resistance levels, whether it be from the pre-market or past trading days, is crucial to your consistency as a trader.
The reason it is so important is because price will tend to gravitate to specific levels of support or resistance from prior trading days.
There are many ways to identify areas of support and resistance, from trend lines to slower timeframes, which will enable you to adjust your trading according to how the market moves around these important levels.
Step 3: EXECUTE THE TRADE! Once you have identified the ideal trading opportunities and made the proper adjustments to your trading routine, it's time to execute the trade.
To do this, Patience & Discipline are of utmost importance.
Having patience and discipline, especially when you're waiting for your perfect trade set-ups, will intern help you become a consistent trader.
This is accomplished by let your Rules trade for you, not your emotions! Once you allow this to happen, you will finally see Consistency in your trading.
Let's Review..
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The key to seeing CONSISTENTCY in your trading is as easy as 1-2-3 1.
IDENTIFY 2.
ADJUST 3.
EXECUTE THE TRADE! No matter where you are in your day trading career, whether you're just starting out or have been trading for a decade; these three easy steps will improve your trading.
Good luck, and follow your rules! Sincerely, School of Trade