What activities will you do BEFORE you start trading?
We don’t mean showering and brushing your teeth (although you should always take a shower and brush your teeth. You don’t wanna smell like Pipcrawler now do you?)
Your forex trading routine should help you accomplish the following tasks:
- Reviewing any open positions and making any necessary adjustments
- Reviewing yesterday’s trades
- Getting yourself “up to speed” on the market
- Identifying any upcoming news that could cause volatility
- Being ready to trade when the next trading session opens
Now you will want to review the overall market news. This can be done online through sites such as FreshPips.com, checking out Pip Diddy’s daily round up, or through television (CNBC, Bloomberg, BBC). Determine what the overall market sentiment is for the day, review yesterday’s trades and how the previous trading session finished, and maybe identify key market areas like support and resistance.
Now it’s time to start trading your system!
Your pre-market routine will be critical to your success as a trader. It will help you plan your day so that you are not spending time during market hours scrambling trying to figure out what news or data will be coming out, and what to do if the market does something you didn’t expect.
You want to start your currency trading session feeling calm, relaxed, and prepared for whatever the market throws at you.
Keep up-to-date with both the fundamentals and technicals affecting the market. A trader in the dark is a trader in the red.