In the fast-paced world of trading, achieving better results doesn't always require complex strategies or advanced techniques. Surprisingly, one of the most effective ways to enhance your trading performance lies in something much simpler: building a proper trading and life routine. This routine serves as a reliable foundation upon which both your mind and body can depend. A healthy routine and good habits contribute to overall well-being, and a well-structured daily plan significantly impacts your trading performance.

Why habits matter in trading

A healthy routine and good habits play a significant role in trading and can greatly impact your overall performance.

A habit is essentially an activity that we repeatedly engage in, often on a daily or frequent basis. By incorporating good habits into your life, you can establish a supportive routine that enhances your trading endeavors.

Here's why habits matter so much if you're a trader:

1. Consistency: Good habits ensure a consistent trading routine, enabling well-informed and disciplined decision-making. They help you stick to your plan and avoid impulsive reactions.
2. Discipline: Cultivating positive habits fosters discipline and self-control. Following a structured approach and adhering to risk management strategies leads to disciplined trading decisions.
3. Psychological Well-being: Incorporating habits like meditation, journaling, exercise, and taking breaks reduces stress, enhances focus, and promotes a balanced mindset for rational decision-making.
4. Skill Development: Habitual practice of trading techniques and reviewing past trades accelerates skill development, leading to proficiency in executing strategies.
5. Self-Improvement: Engaging in habits such as reading, continuous learning, and seeking feedback fosters self-improvement, keeping you updated and adaptable in the dynamic financial markets.

Over time, these positive habits will contribute to your growth as a trader and enhance your overall trading performance.

The Initial Step

The most straightforward approach to beginning this journey is to document your existing trading routine and identify areas that require modification. This self-assessment will help you understand your starting point and define the destination you wish to reach. Without a clear understanding of the habits you wish to change, the transformation process can present challenges.

Building positive habits requires transitioning from one habit to another, and while this may initially feel challenging, the key lies in creating a repeatable pattern. Once you surpass the first 30 days, which are typically the most difficult, the process becomes considerably easier.

Starting Small

Starting small is crucial when creating a solid routine. Consistently repeating small activities leads to lasting habits, which can have a substantial impact on trading practices. Just as training for a marathon begins with a 5-kilometer jog before gradually increasing the distance, building new trading habits follows a similar principle.

Incorporating good habits

So let's start. Those are a few fundamentals that I always recommend while creating a healthy routine:

• Define Clear Trading Hours: Establish specific timeframes dedicated solely to trading to ensure mental and physical preparedness during those hours.
• Define waking up time and going to bed hours: so that you can plan your day properly, have a good resting time, and make your body efficient in the hours you plan to trade.

• Set Pre-Market Preparation Time: Allocate time before the trading session to analyze market trends, review strategies, and stay informed about relevant news or events.
• Incorporate regular breaks: Include breaks in your routine to recharge, clear your mind, and prevent decision fatigue caused by the mentally demanding nature of trading. I recommend going outside on your breaks to change your surroundings. It often brings a new perspective to a situation you may have been stuck in before.
• Include Exercise and Healthy Meals: Prioritize physical activity and nutritious meals to fuel your trading sessions effectively, increasing focus, mental clarity, and overall well-being.
• End-of-Day Review: Dedicate time at the end of each trading day to review performance, assess trades, and identify areas for improvement. It will also help to start every day with a fresh mind and not bring emotional struggles from the day before. Making a review each day also enhances decision-making skills over time.
• Remove Temptations: I get it; changes are hard. However, it is much harder if you have temptations around you. It's simple: if you're watching TV, which is always a better option than market preparation, and your TV is near the trading area, you should change it, so you don't feel tempted to break your new habits. It's just the same. For example, if you have an indicator on your screen that makes you want to trade over the top and break your trading rules, you should remove it.

Trader's Good Habit Tracker

All that said, I know it's not easy to make the first step and then maintain the change. That's why I prepared a free tool that will help you develop and track your new good habit routine and build the needed discipline.

The Trader's Good Habit Tracker is a simple yet powerful tool that is exclusively tailored to your needs as a trader:

How is The Trader's Good Habit Tracker helping?

• It's easy to use - Using the tracker is simple. You just need to check off the boxes for each habit you complete each day and enter your trading results.
• It's ready to use - it comes with a ready-to-use tracking system for the entire year, so you can start using it right away.
• It's easy to customize - you can add your own habits to the list or use the default ones.
• You will learn what moves the needle - which will give you valuable insights into what affects your results. You can monitor your progress on the chart and see how your routine influences your trading performance. It is an excellent way to learn what moves the needle and make improvements accordingly! 

Click HERE to get The Trader's Good Habit Tracker now!

List of Good Habits

Feel free to draw inspiration from the following examples, and select the habits that resonate with your body and mind. Engage in experimentation to determine the optimal structure for your routine, ensuring it remains straightforward, consistent, and sustainable!

• Wake up on time
• Express gratitude/love
• Exercise and practice breathing
• Meditate or pray
• Journal
• Enjoy quiet time
• Take a nap
• Eat healthy food
• Stay hydrated
• Take a 15-minute walk outside
• Avoid alcohol consumption
• Minimize TV watching
• Resist sugary snacks
• Read a book for 15 minutes
• Go to bed before 11 PM

The value of persistence

Implementing change is exciting initially, but challenges and discomfort may arise as you continue with your new routine. It's essential to anticipate these obstacles and remind yourself of the benefits your new routine brings. The effort and temporary discomfort you endure will be worthwhile once the new habit is firmly established.