Creating a personal daily routine for tackling the volatile Foreign Exchange markets could be the first step you need for profitability. Often overlooked by many traders, a set of repeatable habits will give you the consistency and discipline required to become a successful trader.
Here are 5 awesome routines that you can include before, during and after your trading day:
Much like how breakfast is the most important meal of the day, your morning routine can help or hinder your preparation for the trading day ahead. A good sleep, healthy food, and a coffee or two before sitting down at the charts will make you feel refreshed and focused to take those excellent opportunities in the markets.
- Be Aware of Upcoming News
Fundamental news releases or economic data points can cause large spikes of volatility during a trading day. A great idea before you sit down at your charts is to open an economic calendar from any reputable forex website (also available in our FXSignals trading lounge) to ascertain any announcements that could cause sudden movements in the market. Not only will this give you a better understanding of the fundamental and economic news that drives volatility in certain currencies but also ensures you can avoid trading at times of increased uncertainty.
- Plan the Trade
Overtrading is a major reason why retail traders fail in the Forex market. Avoiding this is tricky when dedicating your life to the charts! To overcome this, try planning a trade by forecasting what you would like price to do to fulfil your entry criteria. If price plays out differently to your planned forecast, don’t stress – Avoid entering and move onto the next potential setup! If price plays out how you wanted, then Boom, enter the trade (and feel great about predicting a market that trades $6 trillion dollars daily) – always managing risk of course!
- Keep a Journal
Despite being portrayed as a mundane task in the trading lifestyle, journaling is a critical piece of the profitability puzzle. A variety of content can be included in a journal. Remember, a journal is to help you:
- Track trade details and results
- Stay organised
- Improve daily
- Highlight mistakes
- Recall your emotions
- Second Opinion
Here at FX we have a trading lounge providing live signals across the major FX currency pairs. This can be a great option if you want a second opinion on the markets or confirmation of your own analysis. We also provide daily market updates and forex education from our professional traders on our community channels to save you precious time in the morning and gain a deeper understanding of the markets.