Useful tips for a prop trading routine
Traders will have different routines and trading hours
If you are a long-term trader, or trading part time. Then the start of your trading day will most likely be in the mornings or late in the evenings around your standard daily commitments. You may just be starting to trade in the morning and then go to work from 9-5. Or you may have a different schedule where you are trading during the day, but not at night. All traders are different when it comes to putting in the hours into their craft. But let’s have a look at some of the basic needs for a profitable routine when trading for a prop firm.
Regardless of what your schedule is, there are some things that you can do to make sure that you’re ready when the market opens:
1) Have a plan for what trades you want to take before the market opens
2) Have an idea of how much you want to put on each trade
3) Have a list of instruments that are in your watchlist
4) Check if any news
Studying the charts
You will need to find time to analyse the markets by looking at the charts of the individual currencies and research into the next trade. It can take time to look at the trends and patterns to decide what trades to make.
The first thing you should look for is the trend of a currency which will usually offer the quickest route to finding an overall sufficient trading setup. The trend is a general direction of price movement that can be either up or down, depending on what is happening in the market. You should then study and implement patterns to see when it might be a good time to buy or sell.
Documenting your trades is a great way to keep track of your progress. It also helps you identify areas where you might need to improve. Taking time out of your day to write down your thoughts will certainly give you more edge which you may be looking for.
It is important to know what works and what doesn’t work for you in trading so that you can make better decisions in the future.
This is super simple but a very important concept for traders who are just starting out in the markets.
If you cannot justify an entry, you preferably should not enter a trade and wait for the next available time you have to sit down behind your computer and find another trade.
This means that if you do not have the conviction to enter a trade, then there is no point in doing it. If you are not sure about your trade, then don’t do it. You will lose money in the long run if you continue to make trades that are too risky or have little information on them.
Trading full time for profits
We are all different and we have different goals int trading. Some will be more recreational and do it on the side of another career or job, whilst some will do it full time professionally. It is important to find what works for you and then stick with it. If you are able to hold down a profitable strategy for a while that works for you with low risk, then it might be viable to treat trading like a full-time long-term career. If you are finding your account going sideways or even into drawdown over a long period of trades then maybe keeping another job and trading alongside it in the evenings for example, might be the better approach.
The truth is that there is no one-size-fits-all solution to trading.
There are many ways to trade, and many ways to be successful in trading.
The trading routine should be a set of rules that traders have to follow in order to trade successfully. It’s not really an automated or mechanical system, but it will help the trader make decisions in a systematic way. The trading routine can be seen as a framework for decision-making, which helps traders take control of their emotions and make better decisions in the market.
The trading routine is mainly about discipline and consistency which you will find are the most important assets to fully understand and achieve in the trading space.