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Sep 30

Being the Best Day Trader Possible

What is the first thing a professional trader should do in the morning? He or she should start by eating a healthy breakfast and then determine what actions to take throughout the day. Being sluggish during the day will only hinder your success.

Good morning indexes

Most professional traders start their day early in the morning. Through evolution, the body’s bio-rhythm adapts to day and night, and by sticking to it, people will experience a positive effect on their body and, thus, their trading. It’s hard to determine what each day holds, so it is best to start each day off on the right foot.

Know yourself and know your trading

In professional trading, the easiest way to categorize traders is in the time they spend on trading. Position trading means long-term trading, with positions usually held for weeks, months or years. This means analyzing each day, all of which is hardly relevant in some cases.

Swing traders have their trades open for hours, days or weeks. In some rare cases, the time frame is used to find areas where changes occur, but it is not the interval at which decisions are made. Day traders trade exclusively within the day session.

They usually avoid overnight trades because it is very risky to leave a chart (and, thus, an open position) unobserved for a longer period of time. This is usually associated with risk & money management. The risk is simply too big.

Finally, there is the “scalper”. This type of trader is specialized in the lowest time periods. Mostly no longer than 15 minutes, often even seconds to two, three minutes.

Knowing your time frame

Why is it important to know your time frame? This affects your trading strategy, your actions, and, thus, your trading routine. Unlike professional traders, beginners usually do not let their eyes off the charts.

The problem is that over-analyzing or counting “pips” too quickly becomes strenuous and causes fatigue. Professional traders are constantly trying to limit their time in the markets, which is a fantastic way to stay fresh for years. View Markus Heitkoetter’s Rockwell Trading YouTube channel for more information.