How Should A Day Trader Plan His Day?

Being a day trader can certainly be overwhelming at times, especially if you are just starting out. There is so much information to digest; the past price action, the stochastics, the r-squared variables, the greeks, the volume are just a few of the things you should be actively monitoring. As a profitable intraday trader you must be vigilant of all these factors and be ready to pull the trigger at any given moment in time.

However, is there a way of organizing your day to make it more efficient? After all, you could be working all the hours in the day but still not be breaking even. Does this sound like you? You may be working hard, but are you working smart?

Do not let the stories fool you - day trading is not a profession where you can work a few hours in the day and earn huge sums of money. There are plenty of video's on the internet of people selling courses claiming that you only need to work 3 or 4 hours a day to earn a full time income. Never buy into this - just like any other profession, you must dedicate your time and commitment in order to become successful.

Lets begin on Monday morning. You should be sitting at your desk at least one and a half hours before Market open. This is because the Asian markets will affect what is happening (and what will happen) in the European and American markets. For instance, if the Asian markets plummet, this is a fairly good indicator you want to be looking to sell stock that day. Furthermore, make sure you are fully versed up in the market news for the Asian markets, as all markets are interdependent between one another.

After you've examined what has happened in Asia, read your favorite news feeds in order to see what is going on in your local markets. Day trading has evolved much in the past few years - no longer are the days where you need to work in a professional institution to get live data, you can simply subscribe to domestic feeds in the comfort of your own home. I also suggest using an rss aggregator to use throughout the day to monitor free news releases. I recommend Google's own package, as it is free also.

Now, during trading hours be vigilant of what the market is telling you. How exactly will you do this? Constantly monitor your level 2 data, and your rss feeds. But don't forget - do not become distracted by this, you must focus on the positions you have already taken as you will need to find a profitable exit point. If you are a new trader I recommend only taking one position at a time.

After the trading day, I highly recommend that you keep a trading diary. This is possibly the most important thing you can do as it will allow you to refine and develop your own day trading strategy. For instance, if your trading strategy is to buy on a resistance level, but you find you take entry to early, by keeping a trading diary you will pick this up and can then add a rule to enter the stock say two percent below resistance. You must dedicate time at the end of your trading day to go through your days activities. This need not be a chore though - at the end of your day, get a big cup of hot chocolate, sit back in your favorite all black converse sneakers and read over your notes.

In all, planning your day is important to becoming a successful and profitable day trader. Don't let people fool you, day traders often work longer hours than other professions. However, with a little time and patience, the rewards will far outweigh the down sides, as you will be financially free. Good luck, and happy trading.