Life can be very haphazard and very unpredictable. You can discover when the tide comes in and when official lighting up time is set for the evening. Beyond that prediction can be a fool’s game, about as reliable as picking winners at a racecourse. Any trader with experience will know that you cannot be right all the time, maybe not even most of the time. That makes it all the more important to be properly organized which means taking things calmly in an orderly fashion and above all having a routine.
In so many professions and occupations, routine is absolutely essential. A surgeon has one before he prepares to operate. A pilot has one before he is ready for take-off. Any professional sportsman or athlete will have a routine of warming up, bending and stretching, etc. to ensure that he is fit to take the field. In the same way that a marathon runner doesn’t line up at the start without an immense amount of training and preparation, no one should risk his livelihood on the markets each day without being geared to a regular routine.
With a sound trading routine the focus is on carrying out the same tasks each trading day, throughout each week, each month and each year. So many top traders have said that the secret to their success has been a painstaking adherence to their routine. They keep very careful records and the most important hours of the day were not the trading hours but the time of preparation before trading and the evening trade reviews – these were never missed out whatever the circumstances. One trader has said that he spends more time going through some of his trading routines than he does actually trading.
Here are some of the ways that a regular routine can assist a trader, especially a new trader. By building in review period you get regular feedback on the way you are trading. They keep you focussed on following your trading plan which is the only way to make progress as a trader. It is proven from numerous researches that when you follow a routine t strengthens your willpower which is very important in that it keeps youaway from taking headlong reactions to events in the trading pattern.
If you stay in a routine when (as in the song) you are down and out, the routine can sustain you when your motivation is low such as after a losing streak. Because the routine involves checking and reviewing, it helps you measure your steps against your medium and long term goals.
Here’s some items that could well be worth integrating into your daily routine:
- Check the calendar of economic events (such as rate changes on Wall Street or London) before you start the day’s trading.
- Get your program launched and make sure it is running smoothly.
- Write yourself notes as to when major things might happen so you don’t miss out.
We’ve only skimmed the surface of this important topic – so maybe add to your routine to widen your reading and to note down major points.