A day in the life of a Trader….

This is a truthful representation of a typical “working” day for myself, the intention is to show you just how EASY investing and trading really is.  Some people think it requires special skills, big brains, extensive knowledge of financial aspects – no it does not.

The only real skill required is discipline and obtaining a trading set-up that you take trades on when it indicates – when it does not indicate a trade stay out of the markets, until it does.  I base my trading set-ups based solely from technical analysis detail off the chart, there is no reason why if you use fundamental analysis that you can’t design a set-up using that detail.

The quickest way to learning a trading set-up is finding a trader that uses one that works or as I did (I prefer to learn myself and then look at options) immerse yourself in the markets and study what seems to happen and work out probabilities etc. I developed a basic system using RSI indicator, from that I was successful but I knew I could be better so I started looking for others using RSI in a better way to me – luckily I came across Robert Miners book that very day and I’ve not looked further as this suits my personality and style perfectly.

It is important for the reader to know that the reason I trade is because of the freedom it gives me as you are able to see below – not for the money, the money is a by-product.  Another great by-product is that don’t have to work for an inane boss that thinks they’re clever – I’ve worked for too many of those types in the past and only have respect for 2 of them out of many more!

Let’s take a look at a typical working day for myself:

7am – still in bed

7.20am – get-up

7.45am – computers on and 1st cup of tea for the day

8am – Markets open and by this time I’ve usually downloaded and exported price data from yesterday into my DT software to look for potential trades – usually a typical day will yield 3 potential trades – The DTosc is the key filter to whether I take a trade or not – my software is set to certain parameters and if a share hits those parameters it’s flagged up.

8-8.30am – I don’t trade between these hours, instead allowing the markets to find their feet from the overnight session in the US and Futures markets.  During this time I will search my selected portfolios for fresh (8) DTosc reversals and take a peek at the charts – if there’s a trade on I’ll quickly work out the Entry, Stop and Target levels and place an order for each trade*  This take less than 5 mins per share and I never have more than 5 positions open at any one time.

If there are no set-ups for that day then I manage any existing trades and then finish for the day

8.30-9am – Shower and dressed.  Feed the guinea pigs, put the washing on and make a cup of coffee.

9-10.30am – manage any existing trades** I’m in, update my stats and trades taken into my log-book and general admin tasks.

10.30am – 4pm – Rest of the day free.

4pm-5pm – manage existing trades, check the market at the close and general admin tasks then close up shop for the day.

5pm+ – Family Time

10pm – Watch the news – this is the only news I’ll look at per day and I don;t pay attention to the business news either – most of it does not assist me in the way I trade/invest.

I do not look at the markets at all of a weekend, weekends are for Family.

* = I only monitor 14 shares from the FTSE100, 5 Currency pairs, the Dow, Gold, Silver and Natural Gas – that’s enough to keep me busy

** = making sure target levels are set in the market and stops adjusted to protect gains.

I have to admit that during my “free Time” during a day for the past 12 months I’ve been studying the markets in depth so I’ve been putting in many 12 hour+ days in the past 12 months to try to understand and find out more detail on market moves etc.  So you could class that as work, the fact is I’m not sat glued to my screen watching prices all day – I couldn’t do that, it would drive me bonkers.

Now I don’t have to work, my trading provides my living, but I hope you can see that you could just as easy do the following if your in Full-time employment:

8pm-9pm – Download and update price data for the day, search for potential trades, place orders into the market and manage any existing positions already in the market.

Midday – during lunch hour, login to online account – manage existing positions, check for new positions going live and manage – 15-30 mins max

You will still be able to obtain the returns I do as it’s not important being sat watching prices, it’s having a plan, strategy and set of rules that you follow – that’s whats important and you can do that whatever the time of day!  so for 1-1.5 hours a day extra work the markets could increase your funds by 30%-100%+ – well worth your time

You do have to have a system that gives you an edge, obviously, once you’ve worked that out it’s a case of just repeating it over and over every time a new set-up emerges.  but you certainly don’t need other people’s opinions such as brokers, fund managers or the news to trade with – I’m proof of that AND you have to remember that when you place a trade you are either right or wrong, that means the trade will either work out or it won’t according to your parameters that you work with.

In the UK you have the ability to do this free from taxation too, by using ISA accounts and Spreadbetting.

Trading has allowed me to stop working for others at 34 years of age, 11 years prior to my intended retirement age of 45.  I make no excuses for mentioning compounding of returns – take a daily chart of any UK share in the FTSE100 index or a major index of shares and study how much they fluctuate over a period over 12 months, then break it down to monthly, weekly etc – why hold a share for the long-term if it makes 10% over 12 months but moves 50% in the weeks during that year!  Unless of course you only need 10% a year then it’s fine.

THERE IS NO RIGHT OR WRONG WAY TO TRADE – YOU CAN MAKE A TRADING SET-UP OUT OF ANYTHING – I’ve heard of traders that win 3 out of 10 trades and are still very profitable!

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