After watching Mark Douglas’ “Trading in the Zone” workshop, one of the examples really stood out to me. He said the attention span of one of his mentees would only allow him to trade for an hour, and after limiting the mentee to one hour of trading, he was able to see positive results. I think it might be my case but I’m not yet sure.
I have yet to figure out what does a trader’s morning looks like while they’re waiting for a set up, what do ya’ll do in the mean time? I think that’s where I get lost and wander off seeing that I may have missed an entry.
This depends so much on the individual trader’s strategy. A scalper may sit and watch the screen intensely, wait for the set-up, and then enter/exit a position. At the other extreme, a trader using daily charts will look at the previous day’s range and close, check the current day’s calendar, and maybe set orders in the market and then just walk away.
Personally, as an example, I am a day-trader and use 4h and 1h charts. I usually only take one or two trades per day. I look at the markets early morning, mid day, early evening and late evening, all based on the ending 4h bars. Whenever I see a likely set-up forming I then look at the closing bars on the 1h chart until it gives a signal (or not). At that point I enter the trade with both the stoploss and target pre-set. I then let it do its own thing.
My morning routine includes reading the news and checking the calendar for the day. I only trade one instrument so I know thoroughly what is generally going on, what is the flavour of the day, and whether the market is likely to be quiet or active. So I already have an expectation for the day. It is then just a question of watching the levels during the day for any appropriate set-up to form.
It is a very relaxed approach. For other traders it would be too boring. Equally, I cannot trade long-term because I get bored looking at the same position fluctuating day by day and I also like to decide whether I feel like trading or not.
Other traders get their addrenalin buzz from the fast action on min charts or even tick charts. Some especially during very volatile periods after data releases etc.
So there is no single answer to your question. It depends on the strategy and how the trader is personally wired.
Very interesting post, sounds like a routine that would suit my personality. Unfortunately work wouldn’t let me have that routine so I have to stick to EOD, (Demo). Just as a matter of interest may I ask what instrument?
John
Hello John!
The US markets and currency have always been at the heart of global matters and that has always attracted me. In my early days it was always EURUSD and that continued for a long time. But gradually I then became more interested in the US stock indices, mainly because they behave well from a TA perspective and because they move a long way when they move. This is a benefit when one is day-trading (providing one gets it right, of course! ).
Thank you for your detailed response, I think the relaxed approach may be more in tune with my day-to-day activities until it becomes a habit. I appreciate the tip of watching the candles on the hour (for example), so simple yet I had not considered it. I appreaciate your time!
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