Using Routines to Produce Consistent Trades

The stock market attracts a lot of people becausedevelop your plan of attack for the day. The next
they think they may be the lucky ones to pick theroutine you should consider incorporating into your
right stock or stocks and hit it rich quick. In somestock trading system is the intraday routine.
cases, that has happened and probably will happenThe intraday routine is important because the market
again. If you purchase an individual stock and hold itis open; you are able to evaluate activity, the volume
long enough, chances are you will make money overof trading, pricing trends for the day, and to use that
time. The question is trying to determine which stockinformation to predict where the stock is headed for
to buy, the right time to purchase the stock, and thethe rest of the day as you move toward the market
optimum time to sell the stock.closing. The decisions you make based on your
If the stock you purchased has increased in price byintraday analysis are critical, they can make or break
10% will it continue to increase? Should you sell nowyour success for the day.
and take the profit? If you sell the stock now, whatThe final routine you should add to your personal
are the tax implications? In some cases, peopletrading system is the after-market routine. At this
establish a daily stock market routine that may helppoint in time the market has ceased trading for the
them achieve greater success in trading. Generally,day and you can review and evaluate the
there are three separate time periods each day thatperformance. How did your strategies work out?
need attention and analysis, the first is theFrom a financial standpoint, are you ahead compared
pre-market timeframe.to where you were this morning? Take this
For your pre-market routine, consider that the stockopportunity to record trades, tax information, and
market opens for trading each day (exceptother pertinent information you may need later. You
weekends and holidays) at 9:30 AM Eastern Standardcan also take this opportunity to catch up on after
Time, pre-market trading normally occurs from 8:00market quotes and message boards to stay ahead
AM - 9:30 AM. During this timeframe, you can placeof the trend.
trades or orders, you can review new companyWhether you are a day trader or in the market for
announcements, watch for earnings updates, checkthe longer haul, if you establish pre-market, intraday,
the futures market, review major analysis ratings ofand after-market routines they will likely help you
specific stocks, monitor price changes, etc. This willmeet your goals faster than just random, unfocused
help you locate potential buying opportunities andtrading.