How to Optimise Your Trading Routine?

Composite of Clock and Calendar

I’ve recently relocated to Asia from London and I did the usual ritual of readjusting my working routine as well as my body clock. Moving between timezones also meant that I need to re-tune my trading hours.

I started trading again after a week and I realised that trading wasn’t smooth flowing, I didn’t feel that I was performing as I should. Narrowing it further, I concluded that more fine-tuning were necessary. And this led to my topic for today:

How to Optimise Your Trading Routine?

Existing Routine  

In a very broad sense, trading routines are generally driven by trading styles which can be divided into the categories below:

  • Position Trading (Trade held for weeks or months)
  • Swing Trading (Trade held for days or weeks)
  • Day/Scalp Trading (No trades held overnight)

There are lots of Amateur Traders who start off Day Trading or Scalping at the launch of their trading career. They feel the urge to be in and out of the market at all times in order to qualify as a full time trader.

As an amateur trader, here are a few things you should consider.

  • Can you handle the emotional roller coaster of short-term trading?
  • Have you done your due diligence to find out what’s outside the scope of a Day/Scalp Trader?
  • More importantly, you might be a profitable trader but are you consistently profitable?

If you’re not consistently profitable or want to improve further, please read on.

Trading Style that Resonates

The truth is, there is no such thing as the best trading style. Everyone is unique and, hence, you should explore all trading styles to find one that works really well with you.

We should always find the trading style that Resonates with our personality. To achieve that, we need to know and understand ourselves and the trading style thoroughly. For example, what are our strengths and weaknesses? Can our emotions stay under control when the market fluctuates aimlessly in the day? Are we an aggressive or conservative trader? And so on.

Once you find a trading style that suits you and you alone. I’ll call this your Ultimately Trading Style.

Find Your Peak in a Sleepless Market

We all know that the Forex market Doesn’t Sleep, the benefit of this market is that you can trade any time of the day, be it night or day. Unfortunately, the downside to that is that we can over trade quite easily.

Irrespective of your trading system, in my view, you should NOT be trading long hours. The beauty of trading is to let the market Work For You while you spend your time with anything else.

Furthermore, the human mind will only peak and perform within for a certain number of hours. After that, you’ll get tired and start losing focus. Your state-of-mind becomes Less Optimal and trading errors start to crop up as you continue to push yourself unnecessarily.

As a trader, you should really be focusing on finding the trading hours that suits you best. As a guide, the best hours are when:

  • You understand the market sentiment very well
  • You are most energetic
  • Your mind is sharp
  • Motivation and Morale are at a right level
  • You understand and know what to expect from the market.

In short, these are the trading hours that you’re most Productive as a trader. I’ll call this Peak Time. And once you find your Peak Time, mark them down clearly on your diary.

Peak Performance

This really isn’t rocket science but it’s often not obvious when you’re clouded by all the other elements of trading.

In my view, your Peak Performance is merely using your personal Ultimate Trading Style and trading it during your Peak Time.

I did this exercise because of a change of environment. However, thinking about this carefully, we should perform this exercise every once in a while as we continue to progress in our trading career as it’s always worth spending time to review and improve your own trading.

 

Anyway, hope you find this useful. Thank you for reading and happy trading.

 

 

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