The Perfect Trading Routine for Beginners

Author: James Clark

How Traders Set their Daily Routine

Your daily trading routine can be the difference between profit and loss. For beginners, it is essential to create good habits so they can successfully enter, exit, and manage trades. If you’re thinking of becoming a professional day trader and make it your primary source of income, you need to create the perfect trading routine. Your trading routine is an important prerequisite for success.

In this post, we’ll share the perfect trading routine for beginners to help avoid distractions and focus on all your tasks.

Let’s get started!

Things to Remember Before Creating Your Trading Routine

Before creating a trading routine for yourself, you need to keep the following 7 things in mind to boost your chances of successful trades:

1. Start your day well before the market opens.
2. Get a good night's sleep to ensure you stay awake throughout the trading hours.
3. Be cautious and alert of the market sentiment.
4. Protect your current holdings.
5. Stay up-to-date about future events and predictions.
6. Choose a particular sector to trade-in.
7. Actively trade during the first couple of hours when the markets open.

The Perfect Trading Routine for Beginners

Whether you’re day trading or trend trading, trading forex, options, or stocks, your daily routine should be realistic, and incorporate all the points mentioned above. While your strategy may tell you how to enter or exit a trade, your trading routine will help you find and stalk that trade from the beginning. Here’s what the perfect trading routine for beginners looks like:

1. Early Rise and Shine

First, you need to check when the markets open depending on your time zone. This information will help you decide whether you need to be a night owl or an early bird. For example, if you’re living in an area that follows Eastern time, you need to be on your desk at 8:30 AM to launch the platform and watch the morning news. If you’re trading in forex markets, you generally have more trading hours available.

2. Preparation – Pre-Market Analysi

An hour or 30 minutes before the trade, find potential trades and analyze your current position. You can watch the current news and latest market analysis to learn about the market sentiment (bullish/bearish), current holdings, and sector sentiment. During this time, you will also have time to research a particular sector before investing in it. So make a list of target companies based on:

 Entry price
 Target price
 Stop-loss prices

3. Trading

The stock market is most volatile in the morning between 9:30 and 11:30. This is the best time to trade and gain profits. This is also the most important time of your trading routine in which you must avoid all other activities.

If you want to take a break or go out for lunch, the best time for this is between noon and 2 PM, as the market becomes stagnant. If you’re not hungry, you can observe other stocks at this time. Lastly, an hour or two before the market closes induces another volatility wave as traders actively predict whether the stock goes up or down the next day. Day traders hurry to close their positions

4. Review – After the Closing Bell

Once the market closes, stop trading and just write down your observations. Spend an hour every day to review and evaluate your chart for the day. You should also make notes on hours traders, your win/loss ratio, and the total number of trades.

Bottom Line

An efficient trading routine will eventually turn into ingrained habits over time. With time and experience, you will adopt the routine, raising your chances of continuous and consistent success in stock trading.

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