Introduction
The thing about Bill Gates that most resonated with me after watching a Netflix video about him was that he didn’t become one of the richest people in the world by chance or by inheriting enormous amounts of money. He can read 150 pages in an hour, and he genuinely enjoys studying. He reads eight volumes while on the road. Bill consistently possesses a greater knowledge of any topic than the person he is conversing with, according to a close acquaintance. What is the connection between this and trading? Everything…
The secret to successful trading is becoming a profitable trader by mastering the craft and maintaining the discipline to stick to a winning trading schedule until it becomes second nature.
What you need to know about trading routines is as follows:
The real secret to success in the market is having a trading routine. You cannot just become a profitable trader using an algorithmic trading robot or miracle indicator. Your trading pattern can lead to incredible financial success, just as Bill Gates’ daily routine did over many years. You won’t succeed as a trader, though, if you follow the wrong or no routine. Had Bill Gates chosen to read everything he could find about business and programming instead of spending his days munching Cheetos and watching television? Yes. And if Bill Gates had done that, you would never have known who he was.
Bill Gates has a “fire” inside of him—a drive to grow, learn, and become a better person—that appears to have come from both his natural and formative years. If you don’t have it, you have to create it since I can’t give it to you. However, I may provide you with the structure, or the “keys” to the “kingdom,” as it were; however, in order to “turn” the key, you must possess the appropriate trading attitude. If you’re ready, continue reading to find out about the daily trading schedule I’ve used to succeed in the market for the past ten plus years.
The Principal Components of My Everyday Trading Regime
- Compared to many other traders, I interact with the market FAR less during my trading routine. For the following reasons, I’m confident that this will work for you as well as it does for me: Reduces stress, gives you less time to make poor trade decisions due to over-involvement, low trade frequency, fosters discipline, and lets you manage the market without trying to control it.
- My general strategy involves concentrating on end-of-day data, which entails paying particular attention to the daily chart time frames and usually delaying my close examination of the markets on my watch list until the market closes. This is what I refer to as a part-time trading practice, and it has the benefit of reducing screen time so you can do other things. In the long run, however, the fact that you’re spending less time in front of the charts will actually enhance your trading performance.
- I start by taking a weekly perspective. I look at the weekly chart time frames, highlight the important levels, gauge both the short- and long-term trends, and take note of any clear or significant price action reversal indications.
- We will now examine the daily chart time frame. The primary levels of support and resistance that we are searching for are the recent and present market conditions: Is it sideways or trending? Last but not least, we are examining the PRICE ACTION. Have there been any emerging signs in the vicinity of the critical levels? After a pull back to a level, are there any signals formed? Note: Levels can be 50% retrace levels, EMAs (exponential moving averages), or even horizontal levels of support or resistance.
- Since this is only a blog post, I will have to “gloss” over some of the more in-depth subjects, such as stop loss placement, trading psychology, and money management. However, you can learn a little more about these subjects by clicking on the links I’ve just provided, and these subjects are covered in much more detail in my professional trading course.
- What is this whole thing’s GLUE? of my complete trading procedure? Easy. It’s RDH, or routine, discipline, and habit. It’s important that I explain this to you. You recall that previously I mentioned Bill Gates? It’s likely that Bill Gates and Warren Buffett have better habits than you and me combined. The world’s elite—those men and women who have accumulated substantial wealth or who excel in other endeavours—got there via routines that required discipline and eventually developed into habits. It requires an unbelievable amount of effort, but that is the reality. Bill Gates reads a lot of books, but not because he thinks it’s bad—rather, he does it out of pure love! Thus, in order to develop good trading habits, you truly need to love trading as well as the discipline and routine. You can only get wealthy in the markets by developing sound trading habits; there is no quick fix or simple route other than genuinely enjoying the business. And keep in mind, even though I can share with you my method, which has worked for me, it is up to you to LOVE it and have enough enthusiasm for the process for it to succeed!
Chart Analysis and Trade Execution are Part of My Daily Trading Process
Getting a “bird’s eye” perspective of the markets on my watch list is the first significant graphic component of my trading process. This typically entails taking a close look at the weekly chart time frame first. Key market levels, significant turning points, trends, and areas of consolidation are the main things I’m searching for. On the weekly chart, I always start by marking the important levels. Here’s an example:
After that, I’ll start examining it in a very similar manner by dropping down to a daily chart time frame. Depending on the price activity, you might need to add more levels or slightly modify the weekly’s important levels on the daily:
In order to determine which direction is best to trade in and which local levels / zones are most crucial to follow, I am currently assessing the short-term market conditions. Here, I frequently employ a moving average to assist me see the short-term trend and momentum, such as the 21 EMA or something comparable. Additionally, you should become proficient in recognizing periods of Higher Highs / Higher Lows and Lower Highs / Lower Lows; my article on identifying trending markets has more information on this topic.
Not to mention, I’m searching for possible trades and price movement signs. In particular, I am searching for “clean and obvious” signals, or confluence, that match levels on the chart.
- A synopsis of my weekly and daily chart analysis procedure for every market on my watchlist is shown in the charts above. For further information, if you don’t already have one, check out my post on making market watch lists.
- Markets experience stages. Examine the markets that you find most appealing on your watch lists, and you will come to know and understand them on a personal level. Simply take a quick look at them, walk away, or wait a few days before checking them again if you notice that most or all of them are in poor trading phases or rough sideways consolidation. Trending or times when markets are trading in more distinct and broader ranges are the ideal trading periods or conditions.
- The reason most traders lose is that they focus too much on the charts—a point I can’t stress enough. Don’t treat the market like a casino; it’s not designed to be one. Avoid becoming dependent on it! Consider and approach the market as an opportunity to demonstrate your ability to be well-organized, proficient, and self-disciplined. You will be well-rewarded for your efforts.
How I Find, Arrange, and Carry Out a Deal
After completing the aforementioned actions, let’s say you discover a possible transaction. The entry, stop loss, and profit target placement will be done as follows:
- Take note of the “price action signal” on the chart below, which was actually an inside bar within a bearish tailed bar. This was followed by a pin bar indication. A few days of consolidation were followed by a price break below the current downtrend.
- There were two sites of convergence for price—the 1.1250 horizontal level and the 21 EMA (blue line)—because the price had retreated to resistance there.
- If traders had kept onto this trade for three to four weeks after entrance, they could have made a 2R profit. I always advise setting and forgetting trade because of this.
- This illustration demonstrates a distinct pin bar sell signal that developed within a downtrend and at resistance (both horizontal and ema). For an astute price action trader, this was a very evident and straightforward move. If you held the trade for a few weeks, you might easily make a 2-3R profit; the stop loss was located just above the pin bar high.
- The trade above has an intriguing “twist” that may be viewed below. It is evident that the entry was made as a 50% retrace of the pin bar tail.
- This entry gives you the option to offer the trade more breathing room with a regular width stop OR to increase possible risk/reward by using a tighter stop loss. This example demonstrates a closer halt with a higher risk payoff; 6R was achievable in this situation!
Conclusion
In this session, I’ve shared with you a “peek” into my personal trading routine and demonstrated how I personally evaluate the charts every day and every week. Hopefully, you now have a better idea of WHY you need a daily trading routine and HOW to establish one after reading this lesson—and reading it again.
All of my transactions are built upon the aforementioned daily trading process, and I believe that all prospective traders should construct their trading careers upon the same basis if they hope to have a realistic chance of consistently generating money in the markets.
As many of you are aware, I release a daily analysis on the markets immediately after the daily closure of the Forex market. You might be surprised to learn, though, that creating these daily commentary—which resemble the charts above—is also a part of my daily trading and chart analysis routine. Even before I launched this website, I was really journaling my daily observations about the markets, which I have been doing consistently for the past ten or so trading days. It’s practically a daily ritual for me; if I miss a commentary day due to a strange circumstance, such as vacation or travel, I genuinely feel “strange” and as though something is “missing.” You must also arrive at that point.
I provide rolling (continuing) market analysis in real-time conditions, and my daily comments and members’ analysis is a wonderful example of how I go about doing this if you need ongoing advice and assistance with learning to trade, evaluating the markets, recognizing trades, and creating your own personal trading plan. You can take a cue from me on this and apply it to your charts. I invite you to “watch over my shoulder” every day as I use my trade ideas email and the members’ daily chart analysis area to plan my trades and examine the charts.
FAQ’s
Why is a daily trading routine important?
A daily trading routine helps maintain discipline, reduces stress, and prevents impulsive decisions. Like Bill Gates’ structured routine led to his success, a consistent trading routine fosters good habits and enhances trading performance.
How does focusing on end-of-day data benefit traders?
End-of-day data reduces screen time and the temptation to overtrade. Analyzing daily charts post-market close helps focus on high-quality setups, balancing trading with other life activities for better long-term performance.
What are the key components of effective weekly market analysis?
- Analyze weekly charts for key levels, trends, and consolidation.
- Highlight critical support and resistance levels.
- Assess short- and long-term trends.
- Note reversal signals.
What role does price action play in your trading strategy?
Price action is crucial, focusing on market behavior over indicators. Key aspects include identifying clear signals (e.g., pin bars), ensuring signal confluence with key levels, and recognizing trend patterns to guide trading decisions.
How do you manage risk and set profit targets?
Manage risk with well-placed stop losses and realistic profit targets based on risk/reward ratios (aiming for 2-3x risk). Use a “set and forget” approach to avoid emotional trading and adhere to your plan.