There are professional traders who spend entire days trading in forex for themselves or for clients. There are also those who trade in forex only in their spare time. However, most traders have developed a routine of some sort that helps them manage their day while monitoring their trades.
Starting Out a Healthy Day
Depending on where you live in the world, it can be vital to begin work early. That being said, it’s not advisable to hit the alarm button, roll out of bed and begin to check movement in the foreign currency markets. First things first! In order to evaluate trends and choose optimal positions, you need to start out with a full deck. This should cover basic health requirements such as getting enough rest and eating a healthy breakfast. Save some time for exercise, since you won’t want to start trading if your circulation is sluggish or your brain has been deprived of oxygen. By taking care of yourself, you can put your best foot forward when entering the market.
Before the Market Opens
Most day traders take advantage of the early hours to catch up on news events or financial announcements that may have an effect on the foreign currency market. That means scouring financial websites, reading stories in international publications and checking financial news networks for important updates. Most traders will also check economic calendars that note which financial reports are due to come out that day. Those are important to know in advance, as they can result in movement changes. Since forex is a 24-hour market, the early hours are sometimes the busiest since other markets do not open until 9:30 am EST.
Beginning the Real Work
After turning on computers and monitors, the day trader will then begin to open up the platforms for analysis and for trading. The next step is to make sure everything is up and ready to begin work. Trades in forex can be timely and speedy, so it’s important to understand current events and make sure the equipment and charts are available and running smoothly. Now is when the scanning begins to look for trading opportunities. According to preset trading plans, the trader will watch and wait until an opportunity arises to place a trade. In the meantime, the trader will be placing positions and setting up entry and stop orders.
Closing the Day
At the end of the trading day, traders will take time to review their positions, profits and losses. All of this gets documented in a trading journal. The journal makes it easier to evaluate real-time performance and make adjustments to strategies that might not be working as expected. The trader can see the big picture regarding profits and losses. Seeing all the trades together in one place makes it easier to get a clear picture. When finished, the day trading part of the day is over and it’s time to step away from the computer.