Do you know that how you start your trading day can affect how well you trade and directly impact your profit for the day?
Start Your Trading Day Right
How you start your trading day is important. The first hour or so before the markets open should be considered an extension of the preparation you did the night before. Winning traders review their charts after the markets close, make notes, and look for potential set-ups for the next day. The first hour of the next morning is the ideal time to reorient to the markets, review your notes, and check the markets for the overnight action.
What Not To Do
Many traders start the day by making telephone calls, checking their emails and voice mail, and chatting with friends. These are some of the things you should not do.
Because these are distractions. What if someone says something that – although not urgent, unbalances you? What if something or someone demands your attention or some upsetting news surfaces? This sets the tone for the rest of the day. Your mind is now primed to be thinking of something other than the market. Your mind is elsewhere. Your focus is elsewhere. Your concentration is lost. This will affect your trading.
What To Do
Leave the emails for later. Make it a rule that unless it is an emergency, you have no interruptions before the market opens through the first hour or so after it opens. Let your family and friends know this and ask for their cooperation.
Certainly, if there is an emergency or something urgent that needs to be taken care of, attend to it. Certain thing cannot wait and need to be dealt with immediately. If something requires your immediate attention, don’t try to trade. Deal with the situation, as needed. Trading will be there tomorrow. Do, however, put a lid on all routine interruptions.
3 Ways to be in Control
You can be in control of your time, and you can be in control of what you allow to influence your trading. Again,
- Block out the hour before the markets open through the first hour of trading and focus only on your markets; avoid interruptions and distractions
- Use the hour before the markets open to review the markets and make final plans for the day. It is also a good time to take a few moments to clear your mind with relaxation and meditation exercises
- When your day starts, make sure you don’t begin it with a potentially distracting activity. Start with a focus on the markets and a focus on how you will perform today. You will feel good about yourself for being well-prepared.
A positive approach right from the start of the trading day will have a positive influence on your trading during the rest of the day.
Taking action on these simple principles will help you set a positive tone for the day.