| "body"> | | | | to write out his plan for the day, how many trades, |
| Most traders go day to day trading on the fly, take | | | | how much to risk or make, where he'll be taking the |
| a position when it "feels right", especially in the heat | | | | position and where he'll exit, and how large the |
| of the moment when prices are just moving without | | | | position size he's going to take. |
| them. Not preparing for what lies ahead for the day, | | | | During market hours |
| week or month can be a costly endeavor. Many don't | | | | 1. During market hours, the trader has a few options |
| come with a plan, much less a checklist to prepare | | | | at hand:a. Set alarms to notify crucial levels to trade |
| for the day. Many professionals are preparing two to | | | | to change positions that need to be made. (This is |
| three hours even before the market opens. It only | | | | for swing and daytraders)b. Watch news channels |
| shows how serious they value their work and money. | | | | (optional) such as CNBC or Bloomberg to make sure |
| No trading is complete without a routine to make | | | | there are no sudden economic or political news |
| good trading habits in preparation for the trades. No | | | | around the world that may impact market |
| good trading results come from lack of preparation. | | | | movements such resignation of a president, or |
| Once a routine is carried out consistently, trading | | | | terrorist attack on oil field, etc. (This is for |
| success will come consistently. A basic checklist | | | | daytraders).c. Monitor the charts and indicators |
| below will get a new trader started. Modifications can | | | | continuously, trendlines, pivots, and redrawing |
| be made accordingly to fit the trader's preferences | | | | Fibonacci levels. (This is for daytraders).d. Take |
| (use of fundamental or technical analysis), trading | | | | positions as dictated in the trading plan. If the setup |
| style (day, swing, position) and markets (single or | | | | had appeared during the trading session that was |
| multiple markets). | | | | written in the trading plan, execute it accordingly. |
| Before market opens | | | | After market hours |
| 1. Check the day's economic calendar for any | | | | Trader's Daily Routine Checklist Who Have |
| scheduled reports and announcements for the day-- | | | | Signal-Service or Newsletter Subscriptions |
| This part covers the fundamental analysis. He will be | | | | 1. Check/read newsletters from paid/unpaid |
| checking the expected numbers against reports that | | | | subscriptions from signal service, news, analysis, etc. |
| will be publish during the day, recalculating the | | | | and compare them to trading plan. Analyze them |
| numbers to find value. (This is typically for the trader | | | | accordingly to be sure these fit into the trading plan. |
| whose major strategy is based on fundamentals). | | | | 2. Strategy portfolio management and |
| 2. Draw up analysis for changes in the fundamental | | | | maintenance-recalculating and verify if the balances |
| news & reports (interest rate changes, jobless | | | | are correct and if any instrument has gone outside |
| numbers, specific company earnings etc.) to reflect | | | | the percentage of the portfolio. If for example an |
| to current market conditions. | | | | instrument that was made 30% in gains, these gains |
| 3. Check the chart for overnight price action-this is | | | | must be settled: either by reducing the holdings or |
| mainly for a trader who trades using technical | | | | hedge with another instrument to ensure the gains |
| analysis. Normally he will check to see if the prices | | | | made or reduce exposure of the originally instrument. |
| have violated any support/resistance area or any | | | | 3. Write/Revise the trading plan for the next day, |
| numbers that he considers important enough to | | | | which pairs to buy/sell, how many or how much, and |
| confirm or reject the current direction or market | | | | tactically at what price to buy/sell and exit. |
| conditions. In forex, the most popular indicators and | | | | It's not mainly about checking everything and read all |
| tools used are:a. Fibonacci numbersb. Floor pivots | | | | the information out there before the market opens. |
| (daily, weekly, monthly)c. Support/Resistance areas | | | | It's about be satisfied with the retaining content that |
| (daily, week, month)d. High/Low/Open/Closee. MACD, | | | | works for the trading system. But most important, |
| RSI, Momentum, Volume, or other indicators. | | | | creating a routine that becomes the foundation in |
| 4. Write a trading plan - This step provides the trader | | | | building success in investing or trading. |