I hope you enjoyed my webinar last night. I talked about one of my favorite topics – my 24-hour process.
There’s a great deal of research showing that humans have only a limited amount of mental “energy” to expend in a day. Mentally-taxing efforts like trading can drain that energy very quickly. One of the best ways you can reduce this drain and ensure you are operating as efficiently as possible is to develop routines and habits. These habits automate critical processes you need to complete each and every day so that you don’t have to constantly make decisions about what to do next – you simply follow your routines.
I developed my routines over the course of a decade and a half of trading full time. They’ve led me to countless profitable trading opportunities, kept me out of bad situations, and helped me maintain the mental energy needed to manage trades effectively.
My 24 hour process can be broken down into 6 key categories:
1. Nightly Scans. These are the stock scans I run each night after the market closes to help me find opportunities for the next day of trading.
2. Reading News. Scanning will uncover individual stocks and sectors that are moving, but I also like to read the news to get a sense of general market trends and upcoming events that could change the course of the market.
3. Watchlist Development. My routines for managing my watchlist – how I decide what stocks to add from scans and what to remove after the day’s activity.
4. Platform Setup. Many new traders encumber themselves with unnecessary indicators and tools. I’ve found a clean, simple setup that gives me all the information I need in an easy-to-see layout.
5. Social Media. Social media can be an incredibly rich source of information, but only if you know how to sort through all the noise and find the reliable traders and news providers.
6. Favorite Intraday Scanners. Every day, stocks that were not on your watchlist provide great opportunities. I run some intraday scanners to help me find them!
One other piece of the puzzle is trade-journaling. You should be tracking all of your trades and reviewing them regularly. This will help you recognize any patterns in your trading, like times of day that work best for you, strategies you always lose with, etc. Knowing you will have to track every trade you make will also keep you out of some of the most impulsive trades. I created a spreadsheet to help you get started
For more detail on all of the above, you can watch the recording of my webinar below, or send me an email at firstname.lastname@example.org!