Living the Trading Life

Read my Living la vida Trader post.

…If you do not consciously design your trading life, the markets will dictate one for you!

The Trading Life is an adventure. It’s a life that allows you to research a constantly changing place: the market. All the while you are examining your own response to what the market does. The market will test you and if you accept the challenge, you will be examining the most important subject of all, yourself. That’s what gets me up every day.

One of the common question I get most is what my daily schedule is like. I don’t mind sharing it although it can vary greatly from day to day. One of the things I really embrace as a trader/investor/author is the ability to do what I do from anywhere.

Check out this post for more about designing your ideal trading life!

“I am primarily a trend trader with touches of hunches based on about twenty years of experience. In order of importance to me are: (1) the long-term trend, (2) the current chart pattern, and (3) picking a good spot to buy or sell. Those are the three primary components of my trading. Way down in very distant fourth place are my fundamental ideas and, quite likely, on balance, they have cost me money.” - Ed Seykota

I don’t get up early to trade London as many forex traders do. I live is South Florida and that would mean that my trading day would begin at the Frankfurt open, 2:00am EST. No…I like to sleep about eight to ten hours a day. May sound like a lot, but believe me I put in years of 18 hours days at trading and now trade about four to six (maximum) hours a day. I didn’t pursue trading to be glued to my computer screens…I did it for the freedom. For the financial freedom and freedom to set my own schedule. I’m the “Lifestyle Trader”.

Go ahead and use the search box here at ragheehorner.com and type in “pip movement” and you be able to watch a video I recorded and explains the time and average pip movement of the major pairs. This should explain my trading schedule effectively and hopefully help you re-think your own.

I trade forex, stocks, and futures. I think it is more effective to trade them together and the more you read this blog the more my philosophy of “MAC” (mutually advantageous correlation/confirmation) and “Be a Jack of All Markets” will make sense. So in a short four hours (sometime as little a two) to six hours I can manage my forex entries and set up my futures and stock plays — which are typically done on daily charts — as well as keep an eye on my investment portfolio. I know for some of you even two hours might sounds like too much time. Personally, I love the psychology and the game of being a market speculator and this time really flies by for me. There are days when I am not actively trading shorter time frames that I can review both my investing and trading opportunities, park my orders, and walk out of my home office in 45 minutes.

And don’t be fooled by the rubbish out there touting that successful trading or investing can be done in 15 or 30 minutes a week. There a fine line between wanting freedom and just being flat-out lazy. It’s a tempting idea to buy into but just isn’t true. The market is a living breathing thing. If you tell me that you want to be able to get to the point where you can spend 20 or 30 minutes a day looking and setting up trades, I will tell you that it is not unreasonable after three to six months of study and practice. You’re obviously not going to trade short term intraday charts. Your focus will be on daily charts set ups…and that’s cool, that’s fine. The first six years or so of my trading career was built on exactly that. I didn’t have the internet, I had charts mailed to my home each Monday that I updated by hand. And guess what I did just fine. Technology does not make a better trader.

So with all that in mind, let’s take a look at a *typical* day…

I try to get up between 6:30 and 7:00 each morning. (I’d like to make that 6:00 so that I can fit a workout in!) It gives me an about 60 to 90 minutes before any 8:30 data releases. Remember that I’m on Eastern Standard Time.

6:30am – 7:00am EST get up

7:00am – 7:30am EST start scanning any economic data and charts

7:45am – 8:00am EST get ready for my daily “Forex in the Morning” chat

8:45am EST finish the chat and continue to scan the markets

I’ll keep watching the charts until about 11:00am to Noon EST depending on the market action. Noon starts the lunch time doldrums for futures and stock traders and it’s the London close for forex traders. Don’t be tempted to enter trades during the doldrums between the London close and the Sydney open.

I like having a long lunch if possible with my husband, my mom, or friends and I will make time for that at least once or twice a week. I also try to work out three time per week and will usually do this at 12:00pm or 12:30pm for about 30 to 40 minutes.

After either lunch or training I will come back to the office to answer email and watch the stock market close from 2:30 to 4:00pm. This is not set in stone. If I know I will not be coming back to the office in the afternoon, I will be sure to place any orders with my broker before I head out at Noon. I recently picked up one of those laptop connect cards from AT&T so I have cut the leash and can write my required daily trading articles, blogs, and even record videos away from the office.

On average I will put in an 18 to 20 hour of trading a week. I don’t mean to impress anyone with this, I really don’t know if it’s really all that impressive anyways! But I’d rather impress upon you that this is a realistic goal for anyone. And remember I am running three businesses, and entering trades across the forex, futures, and stock market, and managing my investment portfolio.

(updated 07-10-08)