Tuesday, 13 September 2011

Step1: Physical and Mental Preparation

The purpose of this post if to share the physical and mental preparations I go through before I even start thinking about trading. Like a football player warming up before the big game, I want to make sure I am adequately warmed up before I engage the markets.


(1) Physical Preparation
> Adequate sleep: 8 hours sleep daily is a must. I also take an hours nap in the afternoon. The nap is necessary because I am 12 hours ahead of the US markets and trade during evenings.
> Physical exercise: I keep myself active by playing outdoors with my 2 daughters everyday. 
> Bottle of hot green tea on my trade desk: excellent drink to keep me alert without the nasty side effects of coffee. 


(2) Mental Preparation:
I affirm my trading philosophy the moment I sit down at my trade desk:
>  Be disciplined to follow trading rules: Buy lows, Sell Highs & Avoid middle of the range
>  Buy Pullback into Major Support; Sell Retracements into Major resistance
>  Be Patient and let price action come to session trading plan
>  Be Confident and Decisive in executing orders
>  Be strong and let the trade play out - Fear is not an exit strategy
>  Do not trade at dangerous times, zones and days
>  Protect capital by avoiding bad trades and cutting losses early if mistake is made

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