There are various essential tasks to complete in order to be an effective trader and setting trading schedules is one of them. The trading schedule is highly beneficial to different aspects of your trading. To develop a successful schedule it is important you understand what a schedule is and how to use it effectively.
The trading schedule
The first point you should look at is what a trading schedule is. A trading schedule is a time table which states when you should be trading and when you should not be trading. Some traders include more detail such as when their market analysis should be done and when they review their trading journal. The level of detail in your schedule is a personal choice. If you feel you do well with a lot of detail then you should include more in your schedule.
When you create your schedule you need to keep it as up to date as possible. A lot of traders take the time over the weekend to create their trading schedule for the upcoming week. This ensures that they have all the relevant news events and incorporate any changes in their trading. You can complete your new schedule at the same time as your review of your trading performance.
The effect of a schedule on trading
Having a trading schedule is important because it helps to control your trading and limits the effects of certain behaviour. One of the biggest mistakes that a trader can make is to overtrade. This generally leads to losses due to mental fatigue and the use of short cuts in analysis. When you have a trading schedule you are detailing when you should trade and when you should not. If you stick to the schedule you will not have to worry as much about overtrading. Of course, this may not curb the practice completely as you may still be trading too much within the trading times.
Using forex news with your schedule
When you are creating your schedule you have to consider when forex news is being released. Most traders will detail the forex news releases in their schedule and work their trading around this. The reason for this is that the news releases affect the price movement on the market and you have to be prepared. Of course, it is not only forex news that you need to consider when creating your trading schedule.
It is important that you consider when you should be trading and when you should not be trading. This can be determined by the currency pairs you are trading and the market session you need. Certain currency pairs are traded better at certain times and you need to know what these are. You should also consider whether you need a volatile market or not. There are certain market sessions that are more volatile than others. You have to be aware of the market session overlaps as these are the most volatile.
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