Daily routines: preparation, focus and an end-of-day review
Build a daily structure with a readiness check, a fixed trading window, a risk budget and a short process review.
What you will learn
- How to structure a trading day into preparation, a fixed trading window and a review.
- How to use a simple readiness score to decide whether to trade normally, smaller or not at all.
- How to set a daily risk budget before the first trade.
- How to measure rule adherence in a short end-of-day review.
Explanation
A routine is a fixed sequence of actions you repeat every trading day. Its purpose is to make good behaviour automatic so that you do not need willpower for every decision. The weekly macro routine (macro course) and the trading journal (beginner trading course) are covered elsewhere. This lesson focuses on the daily psychological structure around them.
1. Preparation (before the session)
- Readiness check: rate five items from 0 to 2: sleep, mood, preparation, freedom from distractions, and whether you have read your rules today. Maximum score: 10.
- Decision rule: 7–10 = trade normally; 5–6 = half size and maximum two trades; 0–4 = no live trading today, only analysis.
- Daily risk budget: the maximum total risk you may take today, written down in euros and in R.
- Watchlist: a short list of instruments and price levels, with if-then statements ("If price reaches X and shows Y, I consider a long trade").
2. Focus (during the session)
Define a trading window: a fixed period in which you may open trades. Outside it, you may manage open positions but not open new ones. A window limits overtrading and fatigue. Remove distractions: close social media, mute chats and keep only the charts on your watchlist. Each switch of attention costs time and increases the chance of a careless error.
3. End-of-day review (after the session)
Spend 15–20 minutes. Record the trades in your journal, then answer three questions: Did I follow my rules on every trade? What did I feel at the most difficult moment? What one thing will I do differently tomorrow? Calculate the rule adherence rate = trades taken according to plan ÷ all trades. This number measures process quality and is independent of profit or loss.
Worked example
Hypothetical example: a learner has a €10,000 account and risks 0.5% per trade, so 1R = €50. Fees, spreads, slippage and taxes are excluded.
- Daily plan: maximum three trades. Daily risk budget = 3 × €50 = €150 (1.5% of the account).
- Time plan: 08:30–09:00 preparation, 09:00–11:00 trading window, 11:00 no new trades, 17:30–17:50 review.
- Readiness check on Wednesday: sleep 1, mood 2, preparation 2, distractions 1, rules read 2. Total = 8 of 10, so normal trading.
- Readiness check on Thursday: sleep 0, mood 1, preparation 1, distractions 1, rules read 2. Total = 5, so half size: 1R = €25, maximum two trades, budget = 2 × €25 = €50.
- Weekly review: 12 trades, 10 according to plan. Adherence rate = 10 ÷ 12 ≈ 83%. Two trades were opened at 11:20, outside the window. The improvement for next week: set a phone alarm at 10:55.
Note that the weekly profit or loss is not part of this assessment. A week with a loss and 100% adherence is a better process week than a profitable week with 60% adherence.
Common mistake
Practice activity
On paper: (a) Write your own five-item readiness check with the 0–2 scale and the decision rule. (b) A hypothetical trader has a €6,000 account and risks 1% per trade with a maximum of two trades per day. Calculate the normal daily risk budget and the budget on a half-size day. (c) In a week the trader took 8 trades, of which 5 followed the plan. Calculate the adherence rate.
Show solution
(a) Example items: hours of sleep, emotional state, analysis done, quiet workspace, rules read. Your items may differ; they must be specific and quick to rate.
(b) 1R = 1% × €6,000 = €60. Normal budget = 2 × €60 = €120. Half-size day: 1R = €30, budget = 2 × €30 = €60.
(c) 5 ÷ 8 = 0.625 = 62.5%. This shows a process problem, whatever the profit or loss was.
Limitations: a self-rated score is subjective; its value comes from rating honestly and consistently, not from the exact number.
Key takeaways
- A routine replaces willpower with a fixed sequence: preparation, trading window, review.
- A readiness score with a written decision rule tells you in advance when to trade smaller or not at all.
- Set the daily risk budget in euros and R before the first trade.
- Rule adherence measures process quality and should be reviewed separately from profit and loss.
Next step
In the next lesson you will see how stress, sleep and your physical state change your decisions, and how to include them in your readiness check.
Self-check
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