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Preparation Ritual as a Trading System





Full Transcript

Preparation ritual for Trading

Today, I’m going to be showing you what my morning routine and ritual looks like before I actually start my trading strategies my actual trading. Because if you are not mentally prepared, you will not be able to get in the zone. And being in the zone is the most important thing for day trading. Nothing else should matter. Nothing else. Right now you are here.

In that moment, and this is where it all begins. So when I start my day, I open up for different oh, sorry, five different windows simply because I want to know what is happening for my particular market.

Preparation Ritual as a Trading System

My particular market is the ES mini futures. Right. So I first go here. Obviously, it is kind of a no brainer to see if there is any holiday going on today. There is no holiday. So I just closed that off. My second most important and I actually think this is v most important for me is news to see if there are any news today, because if there are news at that hour, I stay.

No way you could check my other news trading into news or around news video to get a better idea of the news itself. But usually so I look here, it’s forex factory dot com and I see right here it’s a red.

High impact at 11:00 a.m. during day trading hours. Right. So I know that around 11:00 a.m., normally 15 minutes before and 15 minutes after, I don’t come near the market. It’s Radic, it’s indecisive. Probably low volatility or too much volatility. Not the normal movement of the market and it has a tendency to do things that you cannot control after that.

I also have a backup one that I check out. It’s the Nasdaq dot.com 1 interest, the economic calendar that tells you the different news that are going on. And I always look for the red. And here it is, red, 11:00 a.m. So it coincides with the other one. This is just kind of like a backup for its factory outcome is my number one go to. So trading.

Yes, many. I have to think about contracts, even though my trading platform ninja trader gives me, I guess, alerts of when it is going to be rolling over. I need to be on top of it. So here I am.

The next one I am right now have been in September and it says that 16th of September is a rollover for the E many in particular. It’s usually eight days before that. The actual roll over begins. I don’t know why that is.

I don’t even think anyone does that much. It doesn’t matter regardless. I know that September 8th is when I need to roll over to the December contract. This is again for E minis.

Every single market has its own thing that you need to be checking all the time. The other important thing that could really make a market move in weird ways is options expiration week. OK, so here is the legend and it shows you when the options expire and it’s this little diamond in and here it is. We are technically in the week that there is an extra expiration.

I am right now in September. Options expiration week. That’s when the market is a lot more erratic and doesn’t move as well as it usually does. And on the day before options expire, stay away. You just you know what? If you want to trade, go into Simo.

Chances of it being really unpredictable are really high. So that is mine. My start. Right. I do that. Begin with after I have found out what’s going on. I know that there is news. I know when I need to stay out. Then I go to my charts. My chart is my canvas, right? This is where everything happens. So when I start to do is because I do a trade. I don’t really care that much what’s been happening in the previous week.

Maybe one day event one day before is all I really need. So I check to see what has been happening in the market and as far as I can tell. There’s been some.

Sideways movement, right? This is kind of the. Hang on a second.

This is kind of like a channeling market, right? It’s a big channel enough for me to trade, but overall I’m seeing that the market has been in a channel. So I put my areas, I immediately make my areas. I understand what is happening in the market overall.

And then I look to see what is happening in the immediate momentum, in the immediate time zone time frame, I should say. So that’s more looking at the market like this. So I’ve noticed that the market has been hitting this area.

Enough times for me to understand that this is a strong area and one that I should be really cautious of and not enter at all. And I’m also noticing that there is now starting to be a smaller area here. But in my time frame, it’s a pretty big one.

So at the moment, I’m having a smaller channel in the larger channel. So what I understand is. It’s time for me to just to be able to say it outright, this is what I do. Before I even begin trading, this is usually good to do. If you’re trading the morning hours a little bit pre market time or if you’re going to be trading the afternoon hours, maybe during lunch time, during lunch time is not a good time to trade anyways after I have drawn my. My areas and kind of up and have an idea of what the market is doing in the overall market and also in the immediate momentum.

Then I walk away. I completely walk awake for a good five to 10 minutes and I meditate, clear my mind, close my eyes. Simply just sit and clear my mind. I literally drew in. And visualize in my mind a blackboard with all of this writing going on, because my mind is always, you know, moving here or there. And I draw and I take a bigger razor and I just clear my mind and I sit there until I feel ready. I feel that the rest of my life is not present anymore. And the only thing present for me is getting back to the market now.

Once I come back to the market, I actually have I use sand clocks. So my main Sam clock that I use is five minutes. Sam clock. Right. So what I do is books. I use the Sam clock for the five minute hearing though. This is actually five minutes. All right. So I use this Sam clock. And after. And then I just put it aside and I don’t touch it.

I don’t touch it for five minutes. I let it completely go down and I watch the market. There will definitely be times that I just want to jump in. And that’s kind of like the fear of missing out.

But I also know that there are always good trades coming up, because even though I have cleared my mind, I have drawn my areas. Now I need to get in tuned with the market. So my whole morning preparation takes me about 15 minutes, but that 15 minutes could literally make it or break it right.

The worst thing that a trader could do is jump in, take a losing trade. And not only is it a losing trade, it’s the emotional capital you feel because, you know, you needed to prepare. You know, you needed to get on board. You know, you needed to sit and simply get in touch with your charts and yourself. So after that, five minutes is up. And then I start to consciously and fully presently look for trades to take.

So this is my morning routine. I do this every time I sit down. I shouldn’t say morning. It’s my trading routine. Every time I sit down to trade, even if I did a morning session and I took a couple of hours off, I come back and I do the exact same routine all over again. And that’s when I know that I’m ready to enter the market. It’s 15 minutes.

15 minutes could make a difference between a loss and a win. You make up your own mind. This is my 15 minutes, and I hope I can inspire you to have your 15 minutes of preparation before sitting down at your charts.

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Preparation Ritual as a Trading System