You are busy, I am busy, everyone is busy, right? I have good news and bad news. The good news is that it doesn't matter whether you are busy, because you can learn how to do it right, regardless of your schedule. The bad news is that you won't get rich quickly, but if you've followed me for a long time, you already knew that.
Wait, there is more good news …
In today's lesson, I'll show you the 30-minute trading routine that I developed for myself that saves me a lot of time and mental stress, and ultimately improves my lifestyle. When I started religiously following this routine and adopting the mentality of placing my trades, going away and just letting the market do its thing, my trading results improved dramatically.
The 30-minute trading routine:
The two main components of my 30-minute daily trading routine are …
# 1.New York Close end-of-day chart analysis
Basically, analyzing the end-of-day chart just means that you do your daily analysis after the market closes. The hard part here is that different chart providers display different closing times in their daily bars, which is just silly. The New York end at 5pm New York time is the REAL end of the forex market, it is the end of the trading day. If you don't have the right 5-day charts to close in New York, you need to get them by clicking on the previous hyperlinked text.
The point here is we want to make our trading decisions in the timeframe of the daily chart and we only look at day bars that are closed. So it doesn't matter where you live in the world. Just make sure you only look at the previously closed daily bars. If the current day bar is still open, don't give it much weight yet.
We only spend 30 minutes or less a day analyzing the markets and making our trading decisions. This is, if you like, the basic principle of my overall trading approach.
# 2. Adjust and forget
The next part of the 30-minute trading routine is my approach to setting and forgetting trading management. This approach serves several purposes. The first and most important thing is that the potential for human error (you make mistakes) is largely eliminated by getting overly involved in your trades once they are active. Excessive involvement or interference in your trades after they have lived is the ONLY BIGGEST REASON why traders lose money. You just have to accept that you have to let the market do the job, largely taking yourself out of the equation after pressing this buy or sell button.
Settling and forgetting is about walking away and deliberately avoiding being addicted to looking at the charts. This is the second biggest purpose of my set and forget approach. it frees your time. You can build up your profession and just go away and play golf or another sport or hobby. Do whatever you do. You need to learn to let go and let the market pull you out of your trades instead of trying to manually end trades all the time because you need to be in control. Trust me, the ONLY thing you can control 100% of the market is YOU.
Exceptions to the "rules":
The concept of setting and forgetting is not a perfect science, and I often exit trades before they reach my pre-planned goal, or I can move a goal further out if market conditions look right, such as: B. another subsequent signal or breakout and trend market that looks like a runaway trend type.
However, and I would emphasize this: I never move to stop losses. However, if there is a BIG signal in the opposite direction of the trade I am in, I can exit the trade before I am not hit again. However, these cases are rare.
The main advantages of the 30-minute trading routine …
- Trading this low-frequency, reduced-stake approach is really the best way to trade, and it's really a win-win scenario. The fact that you trade less and focus on daily charts increases your chances of making money in the long run, giving you free time and the opportunity to spend 30 minutes or less a day trading. Win win.
- The mental state of mind that you get when you focus on end-of-day charts and act with less commitment is the state of mind you need to do right. The right trading mentality is not easy to find and most traders lead to a completely wrong trading mentality by trading too much and focusing too much on intraday charts. The 30-minute trading routine allows you to develop a successful trading mentality.
- You are busy, we are all busy, you cannot spend 5 hours a day staring at your charts and you shouldn't! The 30-minute trading routine not only allows you to add trading to your schedule, whatever that may be, but once you start building your trading account, you will really start reaping the rewards. You will find that you can make money without working. They set up the trade and go, come back and check it tomorrow. Trading either works or it doesn't. If, as already mentioned, you don't give a big signal against your position, just leave it.
- Of course, if you trade at the end of the day and wait for these obvious daily chart trades, you will get better trades than someone's day trades. Fewer trades also mean less transaction costs, and believe it or not, transaction costs (fees, commissions, spreads) can and will erode in a trading account faster than most people think. Overall, this 30-minute approach a day is the best way to act. Trust me, I've been there for about 16 years and I've done and seen everything. If you allow it, this will work.
Example of the 30-minute trading routine:
I usually start my day browsing my favorite markets. I mainly look at the long-term trend and the short-term daily chart trend. I can look at the weekly newspaper first and then the day ticket. This gives me a good top-down view of a market and I can quickly and easily see the most important chart levels as well as the current market situation, whether in trend or in consolidation.
If I see a daily chart signal that I am interested in, I will quickly record it in my trading journal. After completing my analysis, I will come back to it and decide whether I want to act or not.
On the daily chart below, the price had just risen from a very strong / important support level when it formed the highlighted bullish pin bar:
Next I will come back to this signal and decide whether I want to trade it or not. When I do that, I simply first determine my stop loss placement, then I determine my profit target and set my position size. If a 1: 2 risk reward or more is not clearly possible, I will aim for 1: 1 or 1: 1.5. I never look at less than 1: 1 risk reward because the trading math just doesn't work out.
I will usually monitor a trade that I am in every 12 hours after the next few days. I do NOT check it continuously or watch at night when I should sleep. An important reason why I don't do this is that I never risk more money than I want to lose. Once you start increasing your risk beyond what you feel comfortable with, you are doomed to stare at these charts all night, and that leads to making all sorts of mistakes.
Let the trade run and let the market do the "work" – YOU don't have to do anything 90% of the time!
You may want to use your trade journal every day to record how you feel, what you think, and just stay responsible for something. Over time, you will notice trends and patterns in your feelings and trading results. There really is no end to how helpful a trade journal can be, and I strongly recommend all beginners or experienced traders to use one consistently.
The 30-minute trading routine can change your trading career. Once you become familiar with this minimalist trading approach, you will see its power and the routine becomes a habit. The goal is to develop the right trading habits. How to earn money in this game. It is no different than being in good physical shape. You start with a routine that may even be “boring” to you in the beginning, but you keep pushing and continue to trust the routine and the arguments behind it. Then you will see results over time and this will add to your work and you will start to enjoy the routine. At this point habits are born and life changes. Using the concepts I taught in this lesson, which I explain in more detail in my trading courses and in my member area, you will develop a trading routine that is consistent with your life and schedule. This low-frequency, low-participation approach works if you give it time. I know that it worked for me and I live and breathe every day.
What do you think about this lesson? Please let us know in the comments below!
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About Nial Fuller
Nial Fuller is a professional trader and author who is considered the "authority" to trade price promotions. It has a monthly readership of more than 250,000 dealers and has been teaching more than 20,000 students since 2008. In 2016, Nial won the Million Dollar Trader Competition. Checkout Nial's professional trading course here.