How I prepare for the market open each week
A thread
A thread
As Iβve mentioned before:
Saturdays are for reviewing the week that was.
Sundays are for planning the week to come.
This is the process I follow Sunday evenings.
I do this around two hours before my broker opens (9PM UK):
Saturdays are for reviewing the week that was.
Sundays are for planning the week to come.
This is the process I follow Sunday evenings.
I do this around two hours before my broker opens (9PM UK):
1. Clean my desk
It sounds basic but I believe your working environment has a direct influence on your mind-set and of course your mind-set has a direct impact on your trading performance.
Uncluttered desk = Uncluttered mind.
Remove distractions.
It sounds basic but I believe your working environment has a direct influence on your mind-set and of course your mind-set has a direct impact on your trading performance.
Uncluttered desk = Uncluttered mind.
Remove distractions.
2. Recall the lessons taken from the weekly review
Saturdayβs review can highlight areas to focus on in the week ahead.
If so, I remind myself of these ahead of the open.
Saturdayβs review can highlight areas to focus on in the week ahead.
If so, I remind myself of these ahead of the open.
3. Check the economic calendar
I look at the economic events which are scheduled for the entire week ahead.
That way, I can assess what the market is waiting for and know where and when to anticipate volatility.
I look at the economic events which are scheduled for the entire week ahead.
That way, I can assess what the market is waiting for and know where and when to anticipate volatility.
4. Review macro forces
I spend time reading the main financial stories that have broken over the weekend and consider how they might impact on the markets I trade.
I spend time reading the main financial stories that have broken over the weekend and consider how they might impact on the markets I trade.
I do this not only to try and get a heads up on whether to expect a volatile open but also to get clues about market behaviour by looking at whether markets are strong/weak when faced with good/bad news.
This also, importantly, gives me an idea of whether the market might be waiting on an announcement.
This is critical to me because there is edge to be found in trading unscheduled news.
This is critical to me because there is edge to be found in trading unscheduled news.
5. Make a plan for each market
Next, I go through charts for all the markets I trade.
My first step, in each, is to see if there is an HTF (W1/D1) bias.
If so, I drop down to the H1 (swing trading) and H1/5M (short term trading) to look for potential entries into them.
Next, I go through charts for all the markets I trade.
My first step, in each, is to see if there is an HTF (W1/D1) bias.
If so, I drop down to the H1 (swing trading) and H1/5M (short term trading) to look for potential entries into them.
If biases arenβt present, I still plan trades I would take that fall within approximately 2 x ATR of market close e.g., simple mean reversion plays.
By doing this, I am prepared if the market makes a sizable move and I'm not scrambling around trying to work out what to do.
By doing this, I am prepared if the market makes a sizable move and I'm not scrambling around trying to work out what to do.
6. Commit my plan to paper
I jot down every trade I want to take with their stops and targets which means I can enter them rapidly when my broker opens.
I jot down every trade I want to take with their stops and targets which means I can enter them rapidly when my broker opens.
Even if there are situations where I'm waiting for something (e.g., an SFP) and I am unsure of entries, stops and targets ahead of time, I still write it all down.
I find writing a plan helps organise my thoughts.
This is especially the case when watching multiple markets.
I find writing a plan helps organise my thoughts.
This is especially the case when watching multiple markets.
7. Set alerts
I set alerts for any levels that I know I need to pay attention to.
I set alerts for any levels that I know I need to pay attention to.
8. Set a primary focus for the week
I like to give myself something to focus on during the week whilst waiting for trades.
Many times, the focus is on collecting statistics on something e.g., a pattern I noticed either in the market or in my own trading.
I like to give myself something to focus on during the week whilst waiting for trades.
Many times, the focus is on collecting statistics on something e.g., a pattern I noticed either in the market or in my own trading.
As you can see, there are quite a few things to do, and it takes time, but every step is important.
And it's only once I have completed this process, I consider myself prepared for the open.
And it's only once I have completed this process, I consider myself prepared for the open.
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