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It’s important to set yourself a daily routine even before you hit the screen, walk the dog, or make yourself a coffee.
Getting yourself into the right habits before you begin entering positions on any given day is vital if you’re going to maintain a productive and disciplined attitude to trading.
Here are the 4 things you should do every day:
1 – Check the news.
You never know what’s happened while you’ve been away that might affect the stocks or currencies you’re trading.
From President Trump’s daily outbursts against China that send markets tumbling, to the Queen suspending parliament amid the Brexit chaos, there’s one thing for certain. Markets have moods.
Just like nature, markets can exhibit wild, untamed spells that can wreak havoc, before settling back down into a more peaceful state.
These spells are known as periods of high volatility and can wipe out your account in hours, minutes, or even seconds if you’re not careful.
But, they can also significantly increase earning potential if you’re on the right side of the swing – every trader’s dream.
Don’t get caught out by news you should know. Do your reading.
2 – Check the economic calendar.
Be sure to follow the economic data releases that serve as indicators of a country or region’s economic health. Releases of economic data can have a big short-term impact on the stock market and many currency pairs. You don’t want to be taken by surprise.
Data releases, such as unemployment figures out of the US, bank and interest rate cuts, or huge one-off events, such as the result of the Brexit referendum, can cause markets to suddenly and sharply rise or fall, before either correcting or settling into a new trend.
You need to be prepared for these moves by making sure you have enough margin to survive the wild swings, and set your take profit and stop losses a little further away than you might normally.
Luckily, the timing of these relatively large movements can often be predicted, with data releases and election dates widely known a long time in advance.
3 – Do your technical analysis.
At least some technical analysis should be done before you enter any trade to make sure you are not about to be on the wrong side of a price reversal, or unknowingly going in the opposite direction of a clear trend.
If you’re a technical trader, you’ll want to do a lot more than just covering your bases, of course.
The ability to spot trends is a valuable one. While we don’t recommend doing this every time, it wouldn’t be wise to ignore a trend every time. Trends can show you what is coming, so you can proactively adjust your trading, rather than reacting when it’s too late. And be sure to think: What’s my plan B for the different types of scenarios that may arise? You need to expect the unexpected, to trade smartly.
If technical charts and indicators are confusing to you, spend extra time studying and researching how to use them, starting with the basics. Of course, studying requires a lot of time and effort, but it will pay off in the long run. Homework can be fun.
For starters, TIOmarkets has an exclusive trading library with videos, webinars, tips, and tutorials, all designed to help you trade more than 120 markets with a solid strategy. You couldn’t ask for a better way to start.
4 – And last but not least, check your open trades.
Before you open a new trade, check your current positions and have a look at your overall account.
It’s important to always ensure your balance is healthy and that you’re not edging close to a margin call that can suddenly put an end to your trading day.
It’s also crucial not to overexpose yourself on any single market. If you’re heavy on EURUSD for example, and you’re thinking of entering another trade, then it’s probably wise to shop around for a different asset, just to diversify and spread your risk a little thinner.
A healthy morning ritual is the key to successful forex trading. TIOmarkets understands the forex market and makes it easy to get started.
