In part 1 of The Trader's Mind, market coach Doug Hirschhorn discusses how professional trader Mark Moskowitz, who has 18 years of experience, plans his trading day.
Video: Part 1 of market coach Doug Hirschhorn's discussion with trader and former hedge fund manager Mark Moskowitz.
According to Moskowitz, there are four distinct parts to every trading day:
- Pre-Game—Look at charts and decide what stocks to buy.
- Early Open—Begin early-order entry and look for signs of support & resistance.
- Mid-Day—Market gets quiet, take time to review morning & strategize afternoon.
- Late Day—Take info from morning & early afternoon, see if daily plan is working.
Of all the sessions, the pre-game is the most important, says Moskowitz, because good planning gives you the "psychological edge" all traders need.
As a trader, you have to be ready for anything, says Moskowitz. The best thing to do is relax and take 10 to 15 minutes to regroup.
At the end of the day, Moskowitz says, it's time to look back at the day's results. Once you see what worked and what didn't, you can prepare for tomorrow.