I have been looking on the trading forums, and I noticed most traders just start every day up, load the charts, and look around randomly. They don’t have daily habits or a set schedule or plan, they just go for it, and do things as they go. I know when I started trading, I just loaded up my mt4 and started looking for trades to place, and that is a HUGE problem!
Trading is a business, and like all businesses, you need a plan of action. What I believe this means for traders, is creating daily habits you follow every day in order to ensure, maintain, and result in, successful trading not only for that day, but for that week, that month, and every year in the future as well.
- When it comes to daily habits, by far, the most important in my opinion is creating a detailed trading journal, recording your trades, entries, reasoning, screenshots of the chart at the time, and after etc. that way each week and month, you will be able to look back on your trades, see your reasoning, the rules, the chart, and pinpoint the exact things that went right, or wrong.
- Create a daily watch list. Every single day you should narrow down the pairs you are you to trade to 7-8 pairs. There are many ways you can do this, but my favorite is for day traders, to look at the previous days volatility, and choose the most volatile pairs, for swing traders you can look at the volatility on pairs over the last 7 days or even month.
- Make sure you ALWAYS check and record news releases in the morning. When I started trading I was taken out of positions very often due to trading around major news releases, every day you should record the news releases that will affect each pair, so you know when you can trade, and more importantly, when not to trade.
- Create a daily, weekly, and monthly risk acceptance. What I mean by this, is mark the most you are willing to lose for a single day, for a week, and for a month, that way when you start getting losses, you know to stop trading once you reach those limits because you are more apt to revenge, or emotionally trade after that point, this ensures when you trade, you are in the right mindset.
- Another incredibly important habit every trader should take, is taking the time to analyze their trading journal. It is incredibly important to keep a detailed journal as I said, so you can pinpoint mistakes you make, and potential areas you could improve your system, but that means absolutely nothing if you don’t create weekly and monthly review session to really look over your journal and find out the things that went right, and the things that went wrong.
I hope you all found this very valuable, because when it comes to trading, it is incredibly important to develop your daily habits, that way you have a set plan of action every day. You want things as structured as possible, because if you want to be consistently successful with your trading, you need to have a consistent plan of action and approach. If any of you have anything to add, please share it in the comments to share your knowledge with the other traders out there!