Every time a trader begins his day, he should go through the checklist. It may be saved on a computer or written down in a notebook. But what should it contain? Today we are going to list the most important things traders ought to include in their trading routines.
Prepare your coffee and read the news
Do you start your day with a cup of coffee? Or maybe you are a tea-drinker. Do you eat a big breakfast or do you skip this meal? Whatever your morning routine is, you can use this moment to prepare yourself for a trading day.
The news influence the market. Some instruments are more sensitive to changes in the economical world. Read the news so you know what to expect. Binomo offers an economic calendar. It saves your time as you do not have to go through many websites to get to the events that will influence the assets you are going to trade.
Check the past behaviour of financial instruments
Although what happened in the past does not display exactly the future events, it may help you to predict them and make accurate decisions. Some traders use fundamental analysis, others prefer to apply some indicators. Anyway, check whether the market was trending or not, in what direction, with what strength and volatility.
Analysis of the past behaviour of the asset you are interested in provides a better understanding of the situation in the market.
Develop a plan
You should always start a day with a good plan. It is underlined by all specialists that having a trading plan on hand is essential.
Your trading plan should include points such as what kind of asset you are going to trade, what your overall capital is, how much money you want to invest in a single trade, what indicators you are going to use, what stop loss and take profit levels are. You may add much more items to your plan. It is designed to be followed and help you make good trading decisions.
Trading is risky. Even professionals lose occasionally. It is important to be prepared for this and include a risk management strategy in your plan.
Write down the terms of exiting the trade, where you intend to place stop losses, what amount of money you can afford to lose.
Trading is not only clicking on the Buy and Sell buttons. A huge part of the trading is preparation. Do it well. Check the news daily, analyse the situation in the market, develop a trading plan with a risk management strategy.
By following these tips you will be much better organised. It will also help to keep the emotions under control and make more accurate trading decisions at the same time.
Whenever you need to test a new strategy or the changes you have made in the old one, you can open the Binomo demo account. It is completely free to use it. Practice in a risk-free environment and once you are ready, move to the live Binomo account.
Wish you a great trading performance!