That’s the question. More precisely: When building a trading business from scratch, what is the best way to do it? I see two possibilities. Either sit down to trade every day, all day, getting as much experience as possible in as short a time as possible – adhering to the philosophy of “total immersion”. Or rather, slowly ramp up from just one day a week or less, but making very sure that the processes are done correctly, taking time (days) in between to review, evaluate, re-play and adjust – adhering to the philosophy of creating good and sustainable habits and routines from the get-go.
Which way to go?
Some people learn best by total immersion, making a lot of mistakes, but getting a lot of experience. The problem I see is that the experience can be quite expensive, and not just in money terms. The cost of potentially installing bad habits can ultimately lead to utter failure.
So yes, I’m leaning to the side of precision, taking small precise steps as I go. I try to make my main focus the creation of good habits and routines, making sure that I can execute a full day of trading perfectly before adding more to the routine.
My routine – work in progress
This is what my trading routine looks like at the moment. Keep in mind that I started this “new” venture just 3 1/2 months ago with the help of my mentor, who is still supporting me whenever I need his advice.
- Mental preparation and market analysis from 8AM to 9AM.
- Trading time: Wednesday and Thursday, 9AM to 2PM (open trades after 2PM will be checked once every few hours and usually left overnight)
- Trading time frame: Hourly charts.
- Signals: Last week I added ONE more setup/signal to my routine and did first successful execution this week. Before that I traded only ONE single setup/signal.
- Risk: 0.5% of account per trade. I am increasing this as I get better.
So how is it going? It’s improving… My goal is to eventually reach 100% mistake free trading. As of this week I’m at 80% (over last 10 trades). Considering that I started around 40% I think that’s pretty good progress. And by the way, I still made money trading at 40%!