Improve stock trade
online results
with pre-trading routine
Define every day trading rules
for stock trade system
Every trader wants to do best stock trade online only. Everyone wants to make only profitable trades. Well it is not possible to have every best online stock trade profitable. There are also losses in stock trades accompanied with this type of business. It is not necessary to have only profits in stock trades. There will be also losing trades in any stock trade system. But it does not mean that it is not possible to make money by trading. It is common that best traders have their success rate near 50%. Yes, only 50% of their trades are profitable. But even this these traders are able to make money in stock trades based on their stock trade system. They are able to achieve these results by several different techniques. Risk management and
money management
play important role in their trading. But one important aspect is that their stock trading system has defined every day trading rules for pre trading routine and post trading routine. I have this routine defined for every work day and also do weekend analysis routine.
Every day trading rules
for pre trading routine
What does it mean "pre trading routine"? Well making money in any stock trade online is not only about placement of orders, entering the trades and exiting the trades . There are much more everyday trading rules in every stock trade system. There are rules for regular evaluation of every opened trade. These evaluation rules should lead to some trade management decisions like moving stop loss level or taking profits. But there should be also rules for time before stock market is open. Everyday trading rules for activities during time before regular stock market trading hours. I do not mean now to trade during
premarket time.
What I mean is to spend some time with activities related to your stock trade system. I would like to describe here my list of activities I do during every trading day. These activities help me to achieve best results for any stock trade online and make money for me. So what I do before stock market is open? As I described already, I live in Europe but I trade US stock markets. It gives me some advantage to use my morning hours for stock market analysis. If you live in different time zone (like in America) you will probably spend more time with these activities after stock market close.
Stock market situation analysis
First activity I do is to analyze general stock market situation. I use daily and weekly charts of Nasdaq stock market index and SP500 stock market index. It is also possible to use
index ETF shares
that tracks these major market indexes to analyze overall situation.It helps me to determine what type of trading strategies I should prefer. If there is bullish situation or
bearish situation
on stock market.
Open position analysis
I analyze my actually opened positions. I decide if I use some my
trade management
techniques like moving of
stop loss
level or I can decide to
take some profits
during
regular trading hours
after the open.
Search for new
best stock trade opportunity
Third step is to look for new best stock trade opportunity that can be found on stock market. I go through my
list of ETF
shares I monitor. I can go through all of them or only check list of ETFs I selected into my short list of most bullish ETFs or most bearish ETFs. This short list I have prepared during my weekend analysis routine. I analyze stock charts of these stocks and look for possible ETF trade setup I can put into my stock trading plan for the day. Here is screenshot of my Watchlist structure in my
stock chart analysis software
- Amibroker.
Next step I do is to go through short list of stocks I monitor for possible long (bullish) trade or stocks for
short sell
(bearish) trade. I put stocks into these two watch lists every time I find some trading candidate during my every day stock analysis routine or during my weekend analysis.
Technical stock screener
If I find that my bullish or bearish watchlist with best stock trade opportunities have not enough candidates I run some of my bullish or bearish stock screeners. I use stock screener rules in
Amibroker
or I go to FinViz site and use its free stock screener.
How to follow every day trading rules ?
As you can see these rules help me to do regular stock market analysis and stock selection to achieve best stock trade online results.I have prepared excel sheet that contains all activities for pre-trading analysis. I check every point when it is finished. It helps me to do my routine as I see what should I do and what step must be accomplished. I print this checklist and check it every day when I do my pre trading preparation routine. It is really good tool to improve trading discipline.
Return from Stock trade online results back to Stock trading system
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