1. Create many possible scenarios for your upcoming trading day

Brett Steenbarger is a huge believer in creating processes to get better at handling random events that the market might throw at us every day.

The best traders plan their trade and then trade according to their plan, but Steenbarger has some interesting things to note about experienced traders ...

That they not only plan the trade, but they also plan the many possible scenarios for each potential trade, based on news, market volatility, or the central bank's decisions.

Your goal as a trader is to take your plans one step further and create more contingencies for what might happen when you open any new positions. This will give you emotional stability when things go wrong.

They will be a surprise to ordinary traders, but you, differently, will map out situations in advance, always in a ready, calm, and in a control position.

2. Getting information before the market opens is very important

This routine is very simple. You need to know what is coming up and how it will affect your position.

High-impact events can gap positions and will increase volatility. This in turn will affect the size of your stop losses, or depending on the rules of your system, can cause you to stop out before events like Nonfarm news.

Most institutional traders and even professional home traders have a whiteboard that lists all the main points to look out for over the next 5 days, so they can get a clue of what's to come.

3. Market analysis with clear and concise notes

When the time comes to act, you must act with certainty and confidence. Procrastination comes at a cost!

Before the market opens and comes into play, you'll want to know what your game plan is and have confidence with every trade that when the price hits a certain XYZ threshold, you will act.

Never even think about wondering when the market is moving. Your entry criteria have been met, so you must take action and be in a position to fight!

Most professional traders have a notebook, taking notes of their market analysis and trading ideas.

If you have the chance to research successful traders, you will find that most of them prefer to write their ideas on paper, instead of using Evernote, Excel, or Notepad software on their PC.

So take your pen and paper and write down your analysis before the market goes live. Write down your plans in detail, but clearly, then use them as a guide to action for each upcoming session.

4. Visualize your successful trading day - Mental preparation

SMB Capital, a professional trading desk located in Midtown Manhattan founded in 2005 by two active traders, is the birthplace of some of the most successful traders in the world today.

And you know what? Their pre-trading preparation also includes a visualization of each trading day!

Things you can imagine such as:
  • Create a scenario where you are getting waves in the market when your system is designed.
  • Keep calm when the market fluctuates in an adverse event.
  • Act on price breakout if your system identifies it.
  • Take a stop loss when market conditions dictate.
  • Identify and achieve your daily profit goal.
  • See your limit orders executed and then bring them to a successful profit level.
There's so much scientific research on the importance of visualization that you'll regret not having it in your daily routine!

5. Exercise

Just like visualization, there are dozens of evidence that show the importance of exercise in every aspect of our lives.

Exercise will help us:
  • Reduce stress.
  • Increased energy levels.
  • Mindful mindfulness
  • Improve mood.
  • Reduce the risk of a multitude of health problems.
  • Keep your weight in balance.