ArrangementPlanning Any Trading Session

  • How best can you plan a trading day: technical and organizational aspects?
    If your real intention is to live on trading, as it is for many people around the world, then you must know that it must be effectively run as a job, therefore it requires a serious organization for its conduct.

    For people working at banks and investment companies the task is much simpler counting on a large number of technological tools available, but for independent traders the activity is even more difficult. So in order to deal with trading sessions it is essential to organize themselves better.


    • A comfortable corner of work

    Create a work space without distractions, explaining to other people in the house that at certain times you’re working. Avoid using social media networks, chats or other forms of distractions.


    • PC / laptop

    An independent trader should have a PC or laptop exclusively for trading, also should avoid web navigation or opening other tools during the trading session.

    From a technical/computer point of view, a big gigabyte RAM, and a third or fourth generation processor may be just fine. Another useful tip is to always have a spare PC or even a tablet in the event of system crashes on the main machine.

    Only at a later stage, if the trader works on short expiry times fast operations, it would be very useful to add a second or third PC / laptop because it would allow you to monitor multiple charts simultaneously avoiding to change a chart manually all the time.


    • Connection

    Another aspect that should not be underestimated is the type of connection to be used. In order to have a stable data flow, the connection should be not less than 10 MB in download, and a very professional Internet provider should be used to limit disruptions on the line.
    Another useful tip to improve the data flow is to connect the PC on use to the modem with an Ethernet cable.


    • Daily analysis

    After testing the computing part, a trader should analyze from a technical /fundamental side the security or currency that will be traded, so it would be necessary to know the main market movers of the day.

    This stage takes place before the opening of the financial markets by checking the timing of the news of the day.

    Another important aspect is psychological approach, it is useful to eliminate all the background noise, independent traders often working from home are surrounded by a family context which could distract his attention, so it is really important to dedicate a quiet space in the house where nobody might disturb (i suggest you to read the five tips by how to deal with your trading day under a psychological aspect (the following article) After the closing of the market session, a trader should analyze his trading day, quickly updating the tradingplan and preparing the ground for next trading day.


    • Conclusions

    Trading activity is not different from any business activity, because it needs
    organization and routine in its management. It would be useful to create a schedule with times and things to do in order to avoid confusing any activity during the day.


  • the Analyst's answer

    Jean Grossett - Financial analyst

    The importance of having a comfortable location for online trading cannot be over emphasized.

    A lot of traders venture into online trading because of the ease of funding a trading account, ease of placing an order through a simple click of a buy or sell button, and ease of withdrawal.

    Back in the days as an undergrad in 2007, i went into trading with a mindset of getting financial freedom and free time with family & friends, using all the wrong methodology. I approached freedom to mean doing things without being responsible for actions, and as well as friends coming into my trading space at any time. Trading is much different from having a nine to five job. If you are considering placing trades based on bar (candle stick) open of all time frames like I did when I first started, then you are going to get yourself all worked out. You will most likely be chasing the market and revenge trading when following the low timeframes i.e. 5min, 15min, 30min, 1hr, 4hr charts. The problem is you can’t tell at what minute or hour of the day your trade signal will come up.

    For example, using the 4hr timeframe as a trading choice, there are six 4hrbars in a day of which your signal may come up while you are sleeping or at an awkward 4th hour. Following this low timeframes will keep you searching for signals at all times, hence not giving you that freedom that took you to choosing trading in the first place.

    My conclusion on trading timeframe is never to trade any timeframe less than the daily time frame.

     All time frames less than the daily timeframe are for machines/ algorithmic trading. This is because a computer is more efficient than a human and not susceptible to emotions, however in order to do this you will need to set up more infrastructures other than an office space, a dedicated trading computer, uninterrupted power supply, and uninterrupted internet connection.

    You will need to setup a virtual private server (VPS). There are a lot of online companies and brokers who offer such service of VPSs; you will have to do your due diligence in order to subscribe to the ones with low down time.

    In order to escape from the challenges involved in trading from home, most traders often turn to the services of prop trading firms who provide a trader with a more formal trading space. This gives the trader a strict working environment, avoid distractions and all. On the other hand, trading from home can be done if everyone in your home respect your space and you treat trading as a business.

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