Forex Trading Psychology - Routine
What is your routine?
Everybody has one, whether they know it or not, whether you wake up and brush your teeth then shower or you wake up and shower then brush your teeth or none of the above (hopefully that’s not you). Whatever your routine is, it’s usually consistent and that’s what makes it so hard to break.
Full Steam Ahead
You need a routine that flows like the wheels on a train, New traders come into trading expecting to make money without realizing that to make money you must be consistent. Now, we’re only human beings, being consistent is hard without routine. Routine will help you follow through on your plan even under difficult circumstances.
As a trader, you can be profitable but the aim is to be profitable consistently and to do that you need to trade in a consistent way. Now some of you lovely people might think that’s boring. That’s good! it’s supposed to be. The motion of the wheels on a locomotive move in a consistent and boring way but rest assured they will get you to where you’re going. That’s exactly what your trading routine needs to represent.
A trader’s routine is different from the next and often it will be this element that prevents other traders from making money the way they do. A trading routine is often the unseen element to a trading plan but can also be the oxygen that your trading plan needs to work. Without a trading routine, opportunities are missed and execution becomes poor, which could destroy any robust system no matter how much land your daddy owns.
To determine your trading routine, time management is important. If you have a full-time job it would be difficult to be a day trader or a scalper and be efficient. No matter how good a 15-minute strategy you have, you probably will have difficulty executing the strategy. So even if the strategy is from Houdini himself you need to be able to follow the routine.
How often can you check the charts? How often can you do your analysis? How much of an impact do fundamentals have on your strategy? If they have a large impact, can you stay on top of it? These are the questions that can help you define your routine.
What to include in a Forex traders routine?
These are the factors to include when establishing your routine:
Market news impact
- If there are important events on the economic calendar, it is important to factor them in.
- If you can only check the markets once a day, then a swing trading strategy would suit you better
- If you find it mentally exhausting to analyze lower time frames then a longer-term strategy would suit you better.
- If you have a lot of free time and it kills you to wait for long term setups then building a routine around trading lower time frames would suit you better.
- If you have large capital trading frequently will do more harm than good, its best to look for longer-term setups.
- If your goal is to be aggressive and maximize profit the lower time frames are preferable.
Ladies and gentlemen, I cannot stress enough that a routine only works if you follow through with it and that, unfortunately, I cannot help you with, you gotta want it!
Don’t bet the farm.
Don’t lose your shirt.
Cut the L.
Keep the W.