Do you have a morning routing when it comes to preparing for the market day. Even those that have full time jobs tend to have a routine they go through before the markets open. Some traders are more intense than others because they have more at stake. Regardless of the size of your portfolio, here are some tips that can help get your morning started right.
1. Wake up before the market opens: Ok so this one is fairly obvious if you are serious about trading. The stock market opens every day at 9:30 AM EST and by waking up before you have time to prepare for any potential market surprises or simply setup a strategy for the day. Some traders wake up three hours before the opening bell, some three minutes; it is all based on your routine you develop.
2. Read the News: In the old days we would go out to the curb and grab the paper. now we can find the news on our TV's, phones, tablets, or computer. Regardless of how you consume the news, take a look around and see what's going on. The Wall Street Journal is a great publication to get updated on what the market is up to. If you don't like reading online, than simply flip on CNBC, or Bloomberg and watch a few minutes. Between the anchors and the scrolling news at the bottom you should get caught up fairly quickly.
3. Further online research: Some traders like to see what other traders are up to and may use different sites that track trending tweets, or use social media to see what analysts have reported or commented on.
4. Check the pre-markets: This is almost a must if you are a day trader because plays can come about pretty quickly. Most platforms will allow you to see the pre-market quotes of all stocks that trade in the pre-market. Pre-market trading occurs before the markets open and can be a great indicator of the days sentiment. For the simple trader, the whole purpose of this is to get an idea of what stocks if any are on the move early.
5. Give your portfolio a quick overview: Sign into your brokerage account and just give your portfolio a look. This is a good opportunity to see if your positions moved the previous night alongside update any stop orders you may have.
6. Active Traders, setup your trading station before the market opens: This is really a "duh" for those that trade out of their homes, but I have taught many that have struggled at this. Many would try to wake up 5 minutes before the opening bell, gather news and get setup, and more often than not it didn't turn out well. Get your computer running early so you are ready if need be.