1. Prepare
Plan your trading day before the market opens or before your selected trading session.
Before you even look at the charts you need to know how the current fundamental aspects aregoing to play into that trading session including news, political events etc. You also need to be completely clear on WHAT you are looking for technicallyso youknow WHEN it’s time to trade, thisincludes understanding the short, medium and long term directional bias.
Having a clearunderstanding what’s in front of you for that trading day/session will provide you withdirection and a level of certainty when the markets finally open. make sure you write it all down for reference throughout the session. (Also refer to #7)
2. Take regular breaks
Studies have shown that regular breaks and short burst of focused work is a far more effective way to approach things rather than slogging out 8 hours straight in front of your computer screen. Fatigue will lead to you being distracted easier, and possibly making bad decisions when trading. Know when your decision time is (for example end of candle close) and use the time in between to take a stroll around the house or block if you are trading higher time-frames.
3. You can’t be everything to everyone
Trying to be the ‘jack of all trades’ will only cause you pain in the markets. It will have you over trading with unrealistic expectations. If you are not yet trading the FX market consistently, you need to start with just one positive expectancy strategy that works. Get that one right before you start to look at a second technique. Stop shooting from the hip!
4. Use alarms
When waiting for price to reach a point or waiting for the close of a 1 or 4 h bar. Don’t just sit and stare at price. (Refer to points 2# & 9). Set an alarm for a certain price point or time of day, then re-check once price/time has been hit.
Note: Integrating aset and forget method where applicable in your trading can also be very beneficial.
5. Distractions
Social media on your mobile or computer is designed to distract you into engaging with it. Go into the settings of your phone and turn off push notifications for Facebook, twitter, whatsapp, vibe or whatever else you have that can distract you during your ‘productive time’. Have a look in your down time and respond to messages then. Or put your phone in another room and use it as an excuse to extract yourself from the screen in between decision making times.
6. Mindfulness
This is all the buzz these days in many walks of life. It’s basically being completely in the present moment a.k.a ‘Trading in the zone‘. There is a massive amount of information the average human is expected to digest on any given day, and that’s if you’re not a FX trader.
Learn to be present when trading, if you find your mind wandering, take a break and come back with a fresh and energized. helping to eliminate all the unimportant information circling in your mind.
7. Have a trading plan
Plan your trades and trade your plan! Don’t let yourself deviate from your trading plan when searching for your edge to be present in the market. If you edge is not present, set alarms & timers to come back when it’s time to pull the trigger. While waiting there are plenty of things you could be doing to sharpen your skills and broaden your knowledge. (Refer to #9.)
8. Have a good night’s sleep
You can get around the fact your brain needs downtime. The human brain uses 20% of our bodies energy, which is draining both mentally and physically. Your body and your brain needs a recovery time of between 6-8 hours each night to operate effectively the following day.
Pulling all-nighters or trying to trade every hour possible will do you no favours.
9. Don’t fantasy trade, work!
If your edge is not present in the market and you are waiting for a price point or time, don’t just stare at charts wishing you got on the last move of 500 pips or more. There are a host of things you could be doing that will actually improve your trading while you wait.
– Review your previous winning/losing trades
– Review your journal and calculate your current strategy(s) effectiveness
– Study more price action
– Take positive steps toward better discipline and psychology
– Back test a new strategy
– Back test a specific price characteristic
– Back test current strategy to refine your trade / risk management criteria
In short, being well planned and focusing on the task at hand, is the best way to be productive when trading. You need to know when you are actually actively ‘trading’ or when you are just staring at charts.
Don’t waste your time, plan your day with a balance of trading & study/ back-testing accompanied by regular breaks.
Motivation is what gets you started, habit is what keeps you going.
