The Importance of a Trading Routine
Published by Lee Sandford in Pro Trader Course · Friday 20 Dec 2024 · 3:45
Let’s talk about routines – specifically, trading routines. I’m going to walk you through my monthly trading routine. As a trader, it’s vital to develop good habits, particularly if they’re working for you. Repetition and consistency are key. Hopefully, this will give you some insight into how I approach trading, and if you haven’t already developed your own routine, this might help you get started. Feel free to comment below and share your trading routine too!
Even though trading for me isn’t a typical 9-to-5 job, I’ve structured my days, weeks, and months around a consistent routine. I do this every single day, week, and month. It helps me stay focused and productive. Let’s dive in and see if you find my approach helpful.
Swing Trading Routine
Swing traders tend to have a more relaxed approach. They’re not looking to day trade the fast and furious markets but prefer to buy and hold trades for weeks or months. Here’s how I handle swing trading:
Monthly Candlestick Analysis
At the start of every month, I analyse the monthly timeframe using a screener. This provides signals based on my trading strategies. For instance, we recently had a signal on the Euro-Yen that yielded 800 pips profit in a month – a fantastic result!
While I don’t typically enter trades based on the monthly chart alone, these signals guide my decisions. The stops and targets are wide, reflecting the long-term nature of the trades. I then monitor these trades daily, checking for any adjustments needed to stop-loss or profit targets.
Weekly Scanning Sessions
Every Monday evening, I hold a scanning session to identify weekly setups. Using the weekly candlestick, I analyse potential directional moves for the upcoming week. This approach is particularly useful for those who work during the day and want a manageable weekly routine.
Daily Checks
Each day, I review the daily candlestick to assess any developments in my trades. It’s a simple process that can take as little or as much time as you like, depending on your experience and availability. For me, it’s about consistency – managing trades and staying on top of the markets.
Day Trading Routine
Day trading is more intense, focusing on smaller timeframes and quick moves. My day starts early, especially during the summer when the mornings are lighter. Here’s a breakdown of my typical day trading schedule:
The Morning Move
From 7 am to 9 am, I trade the London session, focusing on the “morning move”. This is when banks and institutions begin their trading day, creating increased volatility. The golden hour between 8 am and 9 am is particularly productive, with tighter spreads and significant market activity.
For many traders, this session alone can be enough to achieve their daily goals, leaving the rest of the day free. Personally, I love this time and focus on indices like the FTSE 100 and the DAX.
The Doldrums
Between 10 am and 1 pm, market activity slows down. I avoid trading during this period, using the time for coaching, exercising, or spending time with family.
The Afternoon Session
Around 1 pm, the US pre-market opens, bringing a fresh wave of activity. News releases often create volatility, making this another excellent opportunity for trades. While I don’t typically trade during the late afternoon or evening, this can be a good time for those with daytime commitments to review or enter trades.
Building Habits and Staying Consistent
If I had to choose one trading window above all others, it would be the morning move during the London session. It’s efficient, productive, and allows for a great work-life balance.
Routines aren’t just about structure – they’re about building habits that lead to long-term success. Whether you’re a swing trader, day trader, or a mix of both, consistency is your best friend.
What does your trading routine look like? Let me know in the comments below. If you found this helpful, make sure to like and subscribe for more insights into the world of trading.
Have a great day, and happy trading!
