When you think of the Forex lifestyle, your mind goes to the Instagram pages that have beautiful cars parked outside massive houses. While these could be the rewards of implementing effective trading strategies, the Forex lifestyle is more than just riches but forming a routine that will help you become successful.
How do traders stay at the top of their game?
As mentioned beforehand, it’s sticking to a routine. It’s not because of superstition or tradition, but it’s a strategy that works for them all the time. Also, if it ain’t broke…
Here are some of the traditional things successful traders do:
This depends on what time of the day they trade. If they’re morning traders, the first thing they’ll do is check on the market performance. If the trader is an early starter, their alarm is set 90 minutes beforehand to mentally prepare for the day ahead. They scan the news headlines to determine what might affect the market.
Once the news scan is complete, they’ll assess the performance of their chosen currency pairing to see how well it performed. By 9:30am, the first hour of trading will officially open. Most will trade for an hour, perhaps until 11:30am. Thereafter, the review begins. This means taking a screenshot of your chart to assess your profits/losses for the day.
After 11:30am, it’s usually ‘lunchtime’, which means that trading volume is slow. The pace starts to pick up at 2pm. As with mornings, the first hour is important. The same logic of the morning routine applies here. During lunch, they’ll scan the financial news headlines to discover what could possibly affect the market. Once this task is complete, they’ll review the previous day’s trade charts to inform their next move.
This is possibly the best time for the EUR/JPY traders as the Sydney/Tokyo and London/Tokyo markets are overlapping. 2am to 4am is the most crucial trading times. Again, they’re up 90 minutes to scan the headlines of the day to help provide insight into their next trade.
Once you find the routine that works best for you, you too will be able to live the ‘Forex lifestyle’ – whatever it may mean to you.
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