Day Trading Tips and Tricks

September 13, 2019

Erich Senft

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Market Awareness – Completing Your Pre-Market Trading Checklist

Here is a partial list of a pre-market trading checklist.

Ask yourself:Trading Checklist

  • What is apparent before the opening?  Any relevant announcements or economic data, news stories, or carry over momentum from Asian and European trading.
  • What are your expectations with regards to market direction and the intensity of the move(s)?
  • What strategies will you employ, which risk management profile will you use?
  • How will your strategy(s) fit a change in market mood?

There is also an often unspoken Trading Checklist that needs to be acknowledged and given a place at the table.  We are a part of the market and in our very own small but collective way contribute to market moods.  Therefore taking note of our physical and emotional status is also important.

over sold marketHaving a clear picture of one’s own relationship with money is critical, and failure to include it as a part of your daily checklist may keep you on a perpetual search for success.

This ability was an early “master” lesson I learned and employed to great success.   However, I have also felt the nasty crash and burn when I self-sabotaged myself into failing.  I miscalculated the nuisances of trading with a computer.

I don’t know anybody that trades to lose money, but I’ll be damned if that isn’t what happens to more and more well-intentioned souls.  The emotional blocks that surround the ‘blame game’ are at times better protected than Fort Knox, and I say this from personal experience.

There is a difference between knowing and caring.  The knowing part of the equation is covered with the Trading Checklist above.  The caring or emotional checklist carries as much weight as market awareness and has as detailed a checklist.  Most of the time, the why not’s of our emotions are usually embedded so deep in our brains that it can take several attempts to ‘crack the code’ so to speak.  Gratefully, and sometimes with a little help, it is possible to do.  It took several steps and persistence to get to the core.  But, the mental aspect of trading is so often Technicals analysis vs Fundementaloverlooked or seen as unnecessary, and that point of view is a mistake.  It takes strength to make friends with your unseen but strongly felt emotions.  Make room for them at the table and listen responsibly and with accountability.  I know, easier said than done, but it is essential.  Paying for a trading coach to fine tune and implement a workable emotional checklist has been a wise investment for many of our customers.

The concept of trading the number continues to function in its pure form, but the time portion has grown in importance by a factor of well let’s say billions.  Time as a number is critical to strategy implementation. Data travels at the speed of light across fiber optic cables, which is a far cry from 5, 10 or 15 years ago.  Until the next set or rules and regulations are passed by a group of well-meaning politico’s trying to satisfy a growing army of disgruntled day traders who haven’t figured out yet that the blame game is more about them than the accused, we need to continue to be the ‘gnat on the elephant’s ass.’ Seriously, think about this, when haven’t the markets been ‘rigged’ in favor of the overly greedy players.  However, since they rarely have an original thought on trading, the only way they can fulfill their ambition is to ‘rig’ the game in their favor.  Their myopic view is your competitive advantage.  Be focused… be creative… do the work, and you will be successful!

 

September 13, 2019

Erich Senft

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