22 Feb The Routine Successful Traders Follow For Peak Performance
We all have some sort of routine to start our day – after all, it’s what allows us to be efficient in setting the platform for things to follow. So what’s the best way to start your trading day? Is there a certain routine you should follow to improve your chance of success while trading? While it comes down to the individual, here are three steps based upon my own routine that I’ve followed to enjoy trading success.
Avoid Reacting – wake up early before the market opens and allow yourself enough time to prepare mentally and digest any major news events that could have repercussions for the markets. Waking up half an hour or an hour before markets open is no means to do this, and you start the day with a disadvantage compared with all the traders who have crunched the data from abroad before trade commences. Furthermore, you lose a sense of control over things and start to react to the markets in a nervous manner rather than understanding what is driving them.
Decide three things you want to achieve from your trading that day – waking up and deciding you want to make ‘lots’ of money is not only unrealistic, but it won’t guide you towards achieving anything tangible. Studies find we are usually most productive a couple hours after waking up. Use this time to understand what you will trade and what strategy will be best served to achieve success. Focus on the most profitable, high probability trades and set a specific dollar target you are looking to make. Using this time efficiently ensures we head into the day with a realistic plan and can then focus on executing it.
Establish a morning procedure – lastly, it’s important to methodically plan what needs to be done each morning to avoid procrastinating. With the initial step the most important, it can be as simple as buying or making a coffee. Once engrained in a routine, this action triggers a habitual response from your brain and associates the activity with a readiness to start work. Next, you might want to refer to certain websites to familiarize yourself with the news stories mentioned earlier. Subsequently, you might research and analyze specific trading opportunities. As soon as the markets open, you’re now ready to hit the ground running.
Having a routine is the easiest way to ensure your mornings get off to the right start – it also follows that you set the path for peak performance throughout the trading session thereafter.