By John Peters
Developing routines and sticking with them is one of the important lessons that my trading coach taught me.In trading, a routine means that you define what you need to do each day, week, month, quarter and year to be consistent, organized and successful in your trading. My trading coach told me that in order for you to achieve success, it’s essential to follow a routine.
This is the same in any activity or profession, those that are successful, follow a precise routine. They do what must be done, whether they like it or feel like it or not. It is the same in trading, there are a number of things that you need to do regularly to achieve success at trading.
If you are looking at the markets every day for trading opportunities, then you have to prepare prior to a trade. For example, if you spend time every day looking at the markets, you need to be prepared. Obviously, the first thing you need to do each day is to download the latest data. With the latest prices, you can then systematically review your open positions and decide on the action that needs to be taken. Those actions may include looking for new opportunities to trade, exiting any positions that have fallen below a stop loss or moving a stop loss.
Every weekend, it is a good time while the markets are closed to take a step back and look at the direction of the markets. It is a chance to observe the direction of all markets round the world. Look for the trends and directions and any common threads between the markets. On a weekly basis it is also a good time to do a sector analysis of your own market. A sector analysis will allow you to know which sectors are performing well and which are not.
Record keeping must be completed each month, quarter and on an annual basis. Make certain all the trades are recorded properly. Don’t forget to include to record any expenses that were incurred as part of your trading, which will be required when you prepare your tax return. Every week, your computer data should be backed up. On a monthly or quarterly basis, review your trading performance and calculate your statistics, so you know if you need to take any corrective action.
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MLA Style Citation:
Peters, John "Trading Coach Secrets – Follow A Routine." Trading Coach Secrets – Follow A Routine. 2 Jul. 2010. uberarticles.com. 22 Feb 2015 <http://uberarticles.com/finance/trading-coach-secrets-follow-a-routine/>.
APA Style Citation:
Peters, J (2010, July 2). Trading Coach Secrets – Follow A Routine. Retrieved February 22, 2015, from http://uberarticles.com/finance/trading-coach-secrets-follow-a-routine/
Chicago Style Citation:
Peters, John "Trading Coach Secrets – Follow A Routine" uberarticles.com. http://uberarticles.com/finance/trading-coach-secrets-follow-a-routine/
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