6 min read
This is a new day, the start of a new trading session and the opportunity for a fresh start. But wait – what is the starting point? What is the first thing to do at the start of a new trading day? Every trader needs a good, practical checklist to get them through the day in maximum productivity mode. You can bookmark this checklist or save it in your calendar and see if you can apply it to your daily routine. Let's go!
1. A fresh cup of coffee and daily news
You can start slowly. Why not turn your breakfast into something productive? Depending on which assets you prefer to trade, you can check the news and see if something important is happening. If you don't know where to look, you can find an economic calendar in the trading room.
You can check the news, the Forex calendar or the profit calendar: it can be useful whatever trading approach you take, but it can be particularly useful for news traders, as it is part of their strategy.
2. Market assessment
Now that you've probed the news, it's time to check out what's going on on the specific assets that you normally trade. This can be done through fundamental analysis, but many traders prefer to use indicators to assess the asset's past performance. What are some important things to check? It can be useful to assess the direction of the market, to see if it is trending or flat, to check the volatility and strength of the trend. Keep in mind, however, that past performance is not an indicator of future performance.
All these points can possibly facilitate the decision of a trading plan which can be applied later. It's best to write down the information – the list can be as concise or as exhaustive as you want. What matters is that at the end of the assessment you have a good understanding of what is going on with the asset and what your actions might be based on it.
3. The trading plan
Once it is clear what the market is up to, it is time to plan the trades. Experts rightly consider a trading plan to be one of the most important parts of a trading routine. The trading plan can be beneficial for each trader and it is essential to devote more time to its development. The main points can be the assets, the amount of the investment, the total balance that will be used in a trading strategy or sequence, the levels of Stop Loss and Take Profit, the time interval of the transaction and the market calendar.
The plan can also include information on indicators that can be used in the process, support and resistance lines and graphical tools. Sticking strictly to the plan during the day is one way to have better transaction control and manage your losses.
4. Risk management
An important part of the checklist is the risk management strategy that the trader will use. In this part of the plan, the latter can note the conditions under which he can withdraw from transactions, the acceptable loss amount and the expected stop loss levels.
Logging these items may seem excessive, but it is a good way to control trading activity and manage the emotions that inevitably arise during trading. Another benefit of sticking to this checklist is that it can help you feel more productive, organized and accomplished. Remember that consistency is essential.
Source: IQOption blog (blog.iqoption.com) 2020-07-17 10:56:03
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