The importance of Trading Routine.

Updated: Jun 22

How to build a trading routine.


Just like many other occupations, trading also requires you to follow a fixed routine. For any trader, trading randomly, without a routine, is akin to gambling or throwing darts.


Trading randomly = Random unrepeatable results.


Trading routines are different for different kinds of traders. A day trader’s routine will be a lot different than a swing trader’s routine, which will be a lot different than a positional trader’s routine.


Similarly, the level of research required for each form of trading will also be different. Some forms require looking at hundreds of charts every day, while some require the same chart analysis but only on the weekend at market close..



No matter how good a trader you think you are, if you do not prepare well for each trading period, sitting on the screen for all the trading hours will also be of no use. Trading is not just about placing buy and sell orders, in fact, the orders are the simply the outcome of research that you do every period.



To be great at anything you need practice and trading is no different.


How to build a trading routine.


As stated earlier, one routine can’t be applicable to all kinds of traders.



If you are a day trader, you would want to create a routine starting from pre-market reading to post-market analysis.



You would:


● have your economic calendars ready and updated,

● have a list of securities that you would trade during the day,

● have your entry triggers and stop losses determined,

● have separate plans for early trading hours and late trading hours, and

● work towards strengthening the risk management aspect in different market conditions