Trading won’t always be rewarding, at least not in the way we usually think of monetary gains. Working a typical 9-to-5 job, say, means putting in 40 hours and earning a paycheck. The 40-hour workweek ensures regular pay regardless of how well one performs. A trading routine, however, does not fit with a traditional job description. Unless you make enough winning trades, you won’t make any money. A trader can work a solid 40 hours and still see no results. Yet, that doesn’t mean you won’t get rewarded. Getting out of the 9-5 mindset is the key to success, and here’s why!
Does your 9-to-5 job become your worst nightmare? Don’t worry, you’re not the only one. The majority of people are unhappy with their full-time jobs. According to Forbes, “More Than Half of U.S. Workers Are Unhappy in Their Jobs”.
Screw building anyone else's dreams but yours, don't beg the government or any company to support you, learn skills so you can support yourself, your family & anyone else too as there's SO MUCH $ in becoming an expert in whatever subject you love the most…it's fun & rewarding. — Timothy Sykes, Millionaire Penny Stock Trader
Consequently, ‘Now’ is the time to make a change! While economies are undergoing constant turbulence and the entire world eagerly anticipates setting up the system, it may be difficult to find a balance between revenue and expenses, but this may be the perfect time for individuals to look for a way to earn a living by online trading.
Trading online was once considered a skill only possessed by experts. However, the situation has changed today. Fintech and e-learning have made it possible for anyone with passion, patience, and a desire to learn to become a successful trader. As a matter of fact, more and more people are leaving their conventional 9-5 jobs in favor of full-time trading, with Gen Z and millennials at the forefront of the trend. Discover How Gen Z Investors Can Profit from Turbulent Economic Times to maximize your trading returns.
Nevertheless, there is something you need to be aware of trading. Remember that, even in the best of circumstances, one bad trade can harm your savings and even wipe out all of the money that you have earned. Here’s what you need to know before taking the plunge!
What makes trading different from a 9-to-5 job?
In the eyes of the masses, trading may seem exciting at first glance. Well, what could be more exciting than turning a small stake into a fortune? The profession may seem rewarding to some upon doing a little math and reading a few successful trade stories, however, once you open a trading account and start trading, it becomes clear that the profession is daunting and stressful at best.
Undoubtedly, trading is not for everyone, and many individuals struggle with staying in the game long enough to become skilled professional traders. It is common for novice traders to blow out their accounts before they reach that point. It is easy to get bored with trading and look for thrills, which can lead to impulsive mistakes if you are not careful.
Keeping discipline and self-control is vital if you want to stay in the trading business. Maintaining self-control and following a specific trading routine without getting emotional are key ingredients to trading success.
The secret of your future is hidden in your daily routine.
The difference between a 9-5 jobber and a seasoned professional trader is that with an effective trading routine, a trader can easily reduce his working time. Many successful traders rarely spend more than 1 hour per weekday on trading, and this article shows you how to become more productive and efficient in your trading day.
A Step-by-Step Guide to A Perfect Day Trading Routine
Professional traders approach their trading differently than amateur traders. Professionals follow a well-defined trading routine that allows them to find the best trades every week, whereas amateurs just stumble from one bad trade to another. Having a trading routine in place might save a lot of frustration and money, and the following steps may need to be modified according to the market you are trading in. Let’s begin!
These are some tasks you should perform before the opening bell every morning to make your day trading more profitable.
- It is extremely important to start your day well before the opening bell; this translates into getting a feel for the day’s market, finding potential trades, creating a daily watchlist, and analyzing your current position at this crucial time during the day.
- For efficient trading, you must be updated with the current world economic headlines. Fundamentals provide a lot of information about the general state of a market’s tone, so it’s important to pay attention to them. One of the fastest ways of getting there is by following an economic calendar, which provides analytical assistance and support.
- A successful trading routine also entails an understanding of how key market movers affect your trading outcomes. Prepare yourself for upcoming special events by identifying them in advance. Opportunities like these offer many rewards but are also often riskier.
- Make sure you analyze a particular currencies/firm before placing a trade. For example, by analyzing major currency pairs, you can determine whether the popular currency you trade is bullish or bearish. You should create a list of currencies/companies that you would like to trade in, and categorize them according to market conditions, entry prices, target prices, and stop-loss prices.
- When taking part in active day trading, it is important to incorporate effective strategies into your trading routine to avoid losses. A successful trading plan should include a proper enter and exit strategy, financial management, and managing other aspects of the trades.
During trading hours:
- If you’re trading forex, you’ll see more trading activity when more than one of the four markets is open at the same time. This will result in greater currency fluctuations. You can actively trade and gain profits by focusing on that trading session, which is a good way to increase your profits.
- Forex traders must trade when price movement is most volatile so that they can maximize their chances of success. Prices are at their peak during the following times:
- Overlap between trading sessions
- Publication of news releases and financial data
- Actions are taken by major market players (i.e., Central Banks)
If traders want to succeed, they must develop a thorough understanding of the financial market hours they trade and adjust their trading routines and strategies accordingly.
During off-peak hours:
As a beginner, it is not recommended for you to engage in after-hours trading. As soon as the peak hours have ended, watch and note any observations you have.
- A smart trader understands how important it is to keep a trading journal to succeed in trading. Take an hour every day of your trading routine to prepare your watchlist and strategy for the next trading day and to review your past trades.
- By executing 10 trades consistently or a number of trades that you are satisfied with, you can assess whether your trading strategy gives you an edge over the market.
Prepare your next day’s trading plan:
- Following your review of your trades, you should spend another 30 minutes updating your trading plans as you move forward. Take note of what has happened during the day, redraw your levels, set new price alerts, and search for interesting trading opportunities.
It is not easy to master the art of trading, but it is possible and very rewarding. Successful professionals tend to have ingrained habits that guarantee consistent and long-lasting success going from regular trading routines to ingrained habits.
If you want to be a professional trader, you have to act like one!
The first thing that probably comes to your mind is that this seems like a great deal of work. As a matter of fact, most traders just don’t deserve to make money in the long run because they aren’t willing to put in the time and just hope to get lucky when things go right.
Most amateur traders lack guidance and consistency in their approach, which causes them to lose their hard-earned savings. Do yourself a favor and start following a regular trading routine instead of wandering around. The benefits will definitely begin to show after a few weeks.
Read on to learn the 10 Most Effective Ways To Grow Your Small Trading Account that are essential to long-term success.
Following a routine promotes a better work-life balance!
The top advantage of following a trading routine boils down to a possible work-life balance. Probably, if someone asked you as a salaried person if you have a good work-life balance, you would find it difficult to answer. It’s not uncommon for us to work beyond office hours because we are constantly bombarded with emails and tasks. The result is that we have less time for our loved ones, especially those of us with our own families.
As a trader, you will be able to achieve a healthy work-life balance since you work according to your needs and comfort. You can trade at your own pace, without exerting yourself, and then socialize and spend time with your family when you’re done. The right learning, skills, and strategies can lead to a long-lasting and comfortable career as a professional trader.
Maintaining a healthy trading lifestyle is one key factor that contributes to your long-term success as a professional trader. No matter whether you trade part-time or full-time, developing a trading routine that is in line with a well-balanced lifestyle should be your top priority.
The 9-to-5 Job Wrap
Trading isn’t a traditional 9-to-5 job. There is no need to think of it like that. Especially don’t practice it full-time. You will lose money if you force yourself to trade all day. You should instead study the market as if it were your job. There is no such thing as being too prepared. There is no way you can learn everything about markets in your lifetime and there is no end to your education. An online trading course provided by an established provider is always a good place to start.