I often harp on traders to have a written trading plan. Without one, in my opinion, they won’t have much chance of being successful in the long run. One of the many reasons to consider a trading plan is to formulate a routine for yourself. Following a routine you are comfortable and successful with is imperative to your potential success.
Routines Make Sense
As humans, many things we do are routine are generally easy. We don’t even think about most of them. I am by no means saying you don’t need to think about options trading. Options trading, as most know and have experienced, is not especially easy at first. So, doesn’t it make sense to develop a routine and make it as easy as possible to succeed without a lot of needless thinking or worrying?
To start your day, it makes sense to have a planned pre-market routine. What type of trend has the market been in and how will it open today? How are you going to look for new opportunities and address any current positions? These are just a few issues to consider, but your pre-market routine should be simple and straightforward.
How will you handle the hours when the market is open? Will you be working, or will the market have your full attention? Clearly this will have a big effect on your routine. When will you exit or enter trades? Again, this list of bullet points to consider can be as long or as short as you want. Of course, it could go on and on.
After Hours Routine
And what about when the market is closed for the day? Will you review trades every day or at certain intervals? Do you like looking for opportunities after the market is closed? Will you do post-mortem work on the weekends or just relax?
Just like creating and writing a trading plan, there are several things to consider, and changes and deletions will be made along the way for sure. The goal is to automate your routine as much as possible and give yourself the best chance of success, including removing those unwanted emotions.
Senior Options Instructor
Market Taker Mentoring, Inc.