Step by Step Guide to Create a Perfect Trading Routine
The trading's approach defines the key difference between an amateur and professional trader. While the amateurs experience bad trade one after another because of their poor strategy, the professionals continue to find the best trade every day, following a perfect trading routine.
A trader can drastically improve his trading result following an effective trading routine, and this routine allows a trader to do effective trading at minimum time. Below we will discuss the steps following which an investor can create a perfect trading routine.
Step 1: Setup the Chart
An efficient investor automates the tasks as many as possible and eliminates all the unnecessary and redundant tasks. Setup the chart is the first task for an investor to create a trading routine. The chart setup includes the execution of charting vs. trade, templates and trading view set up, using different templates for achieving more proficiency, creating an invest alert, etc.
All the above steps in creating a chart are equally important, and a trader should execute all the actions carefully. In setting up a chart, separating the charting and trading is very much important. An investor can generate a graph while he is going to the broker's trading platform. He executes the trade and closes the trade again on the same platform. Using different mediums for charting and trading is the distinct feature of a professional commodities trader.
If a trader sets up a specific chart for his trading and separates the charting from his trading, he uses a friction layer in his trading, and he is following an impulsive idea in his trading.
Step 2: Use Your Weekend
Once an investor organizes himself and sets up a chart, then his next step will be looking at the routine of daily trading. If you are not an investor for full-time yet, you should use your available time effectively to prepare yourself for the next trading day.
For an investor, the most crucial time is the weekend, and at the weekend, he can plan and organize his trading approach for the week ahead. Usually, a trader can go through 30 Forex pairs using 3-4 hours, and within these hours, he can re-draw his levels, update his charts, scan crucial patterns, and set alerts for the price.
Step 3: Focus on Morning and Daily News Dose
If you are a technical investor, you should know what is happening in the outside world. Fundamental investors help you learn many necessary things by setting up the tone and delivering colossal information.
An investor doesn't need to spend massive time on fundamental's briefing. Still, he needs to have a general idea about the market circumstance, position of the market, and right now what investors and brokers are dealing in the market. Sometimes you may find overlapping news as so many things are happening together in the world.
An investor should track all the forex news every day, and it would be best for him to use a forex news calendar. If you find that following all the information becomes difficult for you, you can give attention to the medium and influential news.
Step 4: Use the Day and Evening Time
During the day, a trader should consider the trades and enter them in their trading journal to efficiently use the trade information to prepare the next day's plan. A trader can use the evening time for managing their trades. For managing career, he should ask himself and get the answer to the following questions:
What are the essential news at night time, and how do I require to modify my trades?
Do I require partial exist, stop loss moving in my trade?
Should I go through all my existing trades and need to manage them according to the trading plan?
By following all the above steps perfectly, an investor can create a perfect trading routine. But creating a plan and executing it requires enormous time, energy, and effort. An investor can't expect an ideal trading routine without following the above steps.