CREATE A ROUTINE
Posted on 24th November 2021
Mastering trading takes a lot of hard work, patience and dedication. It is not as simple as opening a trading account, watching some YouTube videos and away you go.
Routine is important for a successful trader; its consistency and structure can help ensure they are in the right frame of mind to approach the markets when they open. A successful trader prepares his routine and follows the same processes every single day, from the moment they sit at their desks to analyse the markets, all the way through their trading session, and afterwards when they review their day’s trading.
The human mind only has the capacity to make a certain number of conscious decisions a day. A trader must make many split-second decisions, often under pressure in a real-time environment, and mistakes can be costly. So we want to do whatever we can to reduce the number of decisions we need to make to avoid decision fatigue.
Did you know that many billionaires, including Facebook founder Mark Zuckerberg, wear the same clothes every day (they obviously have several versions of the same shirt), so they can focus their energy on more important decisions?
Creating a routine, preparing a plan, and working hard to embed both into their subconscious removes many of these conscious decisions, allowing these magnates to focus and be more efficient in the rest of their actions.
‘’Failing to prepare, is preparing to fail’’
A routine will be different for everyone, but you should always put yourself in the best position to focus on the task at hand. Make sure you are in the right environment, where you will not be distracted. Have a healthy, filling breakfast to feed your brain the resources it needs to function adequately. I personally also incorporate a mindfulness session into my routine, but some may choose to include stretching or exercise.
Prepare your trading day. Go through your trade plan and analyse the markets so that you have a clear idea of what you will do when the market is in session. If you have a plan for what you want to do ahead of time, when it happens, you will already know what you need to do, again alleviating some of the decision-making process.
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