For all you day traders or scalpers out there, this one is for you. With positional trading, swing trading, or investing, schedules can be very forgiving. Day trading is so demanding, though, that you need to be 100% in the moment and in tune with what is going on within the markets. Having a set routine that works naturally and seamlessly with you and your style is imperative. In a world of uncertainty and constant variables, having a solid routine before (and while) you trade can’t be prioritized enough. Even though currently, I’m not day trading or scalping as much as I used to, what kept me somewhat profitable and solid (mentally) during this was a routine.
A solid routine coupled with your solid trading system, and you have that sound base from which you can operate. If you are a new trader, this is your goal: not making money but solidarity in that order of operations. When life throws those lemons at you, you know how to process and handle those proverbial lemons. So if you are focused on the wrong things (like profits), the odds that you will get flustered and overwhelmed from the market gods is pretty high. It’s harder to keep your cool when you are distracted by those outside events. Focus your attention within, on yourself (your mind), and your precious system or routine. Routine is like my comfort blanket during those volatile market conditions.
Like making your bed in the army, a routine and a set order of things is how we will stay organized and on course. That strictness that you keep within yourself reverberates outwards to everything else you do with your trading day. A messy bed, a messy head, and if you have a messy head, you probably have yourself some messy trades. No one is perfect, mistakes will be made no matter how organized and meticulous you are. However, with a haphazard or undisciplined mind, the odds of those “fat finger” and other silly mistakes taking place are much higher. So, make your bed!
Trading should be boring. If you did this as a thrill-seeker, or if you are chasing a rush in some way, shape, or form, you will probably have a tough time remaining in the game for any period of time. I find that when I’m in the zone or on a winning streak, it’s not exactly thrilling or exciting at all. It’s a lot of waiting, it’s a lot of “set it and forget it”. There is a lot of letting it just play out for a bit before I come back in to analyze. Less is more. It’s no coincidence that my losing streaks coincide with me being more “hands-on” and I’m just over-analyzing or overthinking too much. With trading, often, more is not necessarily better for my trading. I repeat, trading should be boring!
Quick example of my trading routine when I day trade: Markets open for me at 9:30 am. The first thing I do is go for a quick run. I come back all sweaty, turn on my computers, and fire up all my apps and trade stations. Then I meditate for 10 minutes, hopefully around 8:30 am. By 8:45 am, I assess the markets and morning releases or news. I decide if I’m bullish or bearish biased for the day and then plan my trades around that, including a possible hedge or two in case the winds change. All while wearing headphones with peaceful background music. I prioritize my watchlist according to the odds of it playing out and which one(s) have the best risk-to-reward ratio. I have my alarm set for 9:40 am for possible entry times and wait for the volatile movements to pass. That’s my morning routine, which is similar when I come back to trade in the afternoons around 2:30 pm. Rinse and repeat.
Again, friends, the markets and the world at large are wild and uncertain. That doesn’t mean we have to be. We can be calm and balanced within ourselves. Create that stability and reliability within yourselves. Create and maintain your system, create and hold dear that precious routine or trading schedule. I find that when I go on that morning run and then meditate prior to trading, it gets me relaxingly pumped up and ready for my upcoming trading day. My body/mind knows it’s game-time with every step of the routine getting closer to 9:30 and 9:40 am.
What, a war broke out? The president did/said something crazy? The Fed is going to monkey with the rates? Go ahead, market, get as volatile and as reactive as you want. I’m not changing my system rules, and I’m not changing my routine. It has already proven to be the solid foundation I need in the light of perceived outside madness. I hope that if you are a newer trader, you realize the importance of this. Or if you are an experienced trader but find yourself in a slump, perhaps this is something that could refocus your attention on creating that rock-solid surface beneath you (instead of frantically looking around for problems or finding the big holy grail of solutions).
Just keep focusing on your routine to keep your trades clean. I just made that up now, hmmmm not sure if that one will stick.
