Organizing yourself for trading | stockbee

6/16/2014

Organizing yourself for trading



Everyday do the same thing over and over in a systematic manner. Once you have a well thought out method the day to day challenge is largely about implementing your plan. That requires setting up a daily routine and adhering to it as far as possible.

Situational Awareness

 We know swing setups work, but overall market conditions can have impact on the % of trades likely to work. So SA helps you in controlling your trade pace. In good environment you want to be more aggressive. In bad conditions you want to focus on risk management.

Question you need to ask daily for SA:

What is your market bias today

Is there a plan to exploit it

Is there an alternative plan

Anticipation


Anticipation allows you to control risk and get in to setups early or as they are breaking out.  Anticipation is also useful on current open positions. If you have thought through what you will do under different circumstances on your open positions you are in better position.

Question you need to ask daily for Anticipation:

What homework have I done to identify good opportunities ?

What are the 3 to 5 very high probability opportunities I must focus on today

What is my plan for existing open positions

What is working currently
------

Different phases of market favor different kind of stocks or setups. Some time beaten down stocks do well. Sometime stocks with momentum do well. Some time value or growth is in favor. Knowing what is working helps you focus on hot opportunities.

Question you need to ask daily for What is working:

What is working in the market currently

What stocks and sectors are leading the market currently

What style and setups are working currently

What kind of follow through is happening

The hardware and software


All our good plans or intentions or setups are of no use if our hardware or software fails or is not optimum for trading.

Are you setup for today

Is your hardware in proper condition

Is your software working without glitch

What is your backup plan in case of failure.

Your mental state


Your mental state affects your trading. If your are well organised and in proper frame of mind for trading you will be successful. If you are excited, harried, angry, disorganized you will find same thing in your trading.

Are you calm, excited, harried , or confused today?

Are there distractions likely to affect your trading today?

Continuous improvement


As a trader you need to focus at least 25% of your daily efforts on developing new trading setups and ideas and on enhancing your trading skill and knowledge of market. A purposeful plan to do this will cumulatively help you transitions in to new setups and ideas as market changes.

What is your plan for enhancing your market knowledge today

What is your plan for enhancing your trading skills

What is your plan for enhancing your trading mindset


What needs to happen for me to be a confident and in control trader


Do I have resources to get there?

Do I have the burning drive to get there?


Everyday using this kind of framework will make you a better trader . If you rigorously follow these kind of checklist you will see improvements in your trading in  90 days.

No comments: