Stochastic, MACD, Bollinger Bands Plus Day And Swing Traders

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How I Plan My Trading Day?

I was asked by a TSTW trader to talk a bit about how I plan my trading day and I thought this is a good excuse to write an article about it.  

In fact I thought the trader was reading my mind because at the same time I was thinking to send him an email about the same topic.   Either way, one of us is reading the other's mind.  Alright, let's get started.

Planning For Trading Step One

If you are like me and you trade almost the same financial instruments then the preparation is continuous.  


The good things about trading almost the same financial instruments is that one is following on regularly basis what is going in regard to trading setups, economic news and the sector. 

It becomes almost impossible to miss anything.  It is like knowing what is in your house or room.  So I recommend that one focus on a basket of financial instruments.

Planning For Trading Step Two

Check the peers of your favourite financial instruments.  So one that is tading Google stock will be interested in Facebook or Pinterest too.  So really it is just about a basket of related financial instruments that one has been trading.  

For a Forex trader who trades GBPUSD and EURUSD, he or she may also take a look at USDCHF and USDJPY.  You get the idea. 

Planning For Trading Step Three

Keep trading very simple.  That is my approach.  Others may want this or that, but I am always trying to cut all the nonsense so I can focus on the trade. 

Just me and the price-action looking at each other in the eyes like a husband and wife.

If one has a small or average trading fund, one does not need two computers.  Just one desktop with chrome and Microsoft browsers on it and a smartphone will help.

Alright, if one wants two desktops, that would be the max in my opinion.
Obviously, if one is taking 100 trades per day then one will have more computers. Usually, one will have one computer for scanning, one for news, one for trading.

Planning For Trading Step Four

This is about the monthly chart.  I map out financial instruments that I am interested in by drawing trend lines, channels, key levels, pitchfork tools, waves counts and Fibonacci.  I do not remove or change the essential drawings.  

My YouTube channels' subscribers already know what I am talking about.  They have seen my charts.  So, as I said earlier, the preparation is continuous.  One can update the charts if the need arises.  If not it must stay as it is.  It is your chart. 

Planning For Trading Step Five

As the monthly chart is already mapped out, in the evening, the preparation for the next day is about flipping through those monthly charts (I do them manually) to check if a setup has matured. 

If there is a ready play setup that fires a valid trading signal, well that will go onto a trading list. 

Really, one is watching a bunch of financial instruments that one likes as I stated earlier.  Once a valid signal is in place on the signal time frame then that stock goes onto a trading list. 

Firstly, one sets up bullish and bearish watchlists.  This is about the high probability trading setups.  Right?

Consequently, any stock that has fired a valid trading signal will now move from a watchlist onto your a trading list.
When the market is open, one will be trading that trading list.

Planning For Trading Step Six

Please check and read news relating to the financial instruments that you are about to trade.  Please download also the SmartNews app onto your smartphone, and connect to as many financial market websites as you can.  

When one buys or sells a stock, one is effectively buying or selling the company.  Therefore, one ought to stay tuned to the financial market news.

That will help to make intelligent decisions.
I used to bypass those news until I learnt it the hard way.  That is important, whether one is day or swing trading or investing.  The economic news will influence the outcome.  In fact, one can differentiate a serious market player from others by simply asking how much importance do they give to the financial markets news. 

Alright, one may say:  "sorry George, but I do not know how to play news or use them."  That is fine, but rest assured that you will finally get it.

However, begin with getting into the habit of staying in tune with the financial markets.  One does not have to plan it.  It will be spontaneous.  It is like eating and drinking when one is hungry or thirsty.  Surely, one is going to have more appetite for it.  I hope it makes sense.

Initially, it may seem like one is just wasting time. Do not give up.  Just read them for fun, and be interested in them.  You will find your own way.

Trade Ideas Software

This is a software that professionals use to trade on the go.  I have never used it myself, but it got my intention. 

For the professionals to use it means a lot.  So check it out.  Try it by using a demo account for about a week or two.  Have the feel of it and see if it is for you.
Check also the monthly subscription fee and take it from there.  Some may really need it.  It will surely make it easier to have a trading list.  Watch also few videos about it by YouTube searching for trade ideas software review.

Warning
Trading and investing is similar to running a business.  On one side there is the debit (cost or expenditures).  On the other side is the credit (gains, profit, dividends). Therefore, one should not break the bank for having fun as a trader or investor.  Please take it seriously. 

Am talking too much?

That is it really.  Of course if there is something new, I will surely update the article. 

Conclusion

It is a betrayal of oneself as a trader or investor if one skips the preparation for trading.  However, there is no unique trading preparation format that everyone should follow. 

Today, I have shared how I prepare myself for trading, but one can still develop one's trading preparation plan instead of duplicating mine.  A plan is better than no plan, so please start with a plan, and just keep polishing it.  

Finally, I would like to also add that my approach to trading and investing has changed over the years so please do not resist essential changes that work or help.

I wish you the very best.
Happy Trading To All

If you have any questions or comments, please post them 

This article is written by G Beaulieu
Founder Of Stochastic-macd.com