Knowledge without routine is potential. Routine transforms potential into performance. Even brilliant strategies fail without consistent execution. Your trading routine is your operating system—the checklist that ensures your edge shows up every single session, regardless of mood, market noise, or yesterday's P&L.
Welcome to This Lesson
You've mastered technical analysis, risk management, psychology, and discipline. You have a proven strategy with positive expectancy.
But here's the problem most traders face:
The Consistency Gap: "I know what to do. But I don't DO it consistently." Monday: Follow all rules, profit +2.5%. Tuesday: Skip pre-market analysis, lose -1.8%. Wednesday: Forget calendar check, trade into NFP, lose -2.2%. Thursday: Wrong lot size, lose -2.5%. Friday: Perfect execution, profit +1.5%. Week net: -2.5% (should have been +4% with consistent execution)
Lesson Chapters
1Chapter 1: Why Routine is Non-Negotiable⏱️ ~3 min
Routine isn't about rigidity—it's about removing decision fatigue and ensuring your edge executes consistently.
The Pilot Analogy
Commercial pilot: 15,000 flight hours. Knows every switch. YET: Every single flight uses pre-flight checklist (40+ items), takeoff checklist, landing checklist. NO EXCEPTIONS.
Why? One forgotten step = disaster. Routine prevents complacency. Checklist ensures nothing skipped. Process over memory.
What Routine Prevents
Error #1: Impulsive Entries (FOMO) — With routine: Setup must be pre-identified BEFORE session. Can't be impulsive if setup wasn't pre-planned.
Error #2: Wrong Position Sizing — With routine: Risk calculation mandatory. Must calculate before trade. Can't trade until calculation complete.
Error #3: Trading Into News — With routine: Economic calendar review mandatory step #2. Can't forget what's on the checklist.
Error #4: No Post-Trade Learning — With routine: Document trade mandatory. Screenshots, journal entry. Can review and replicate later.
The Statistics:
Group A (No routine): 48% WR, 35% execution errors, 87% failed within 12 months
Group B (Strict routine): 59% WR, 8% execution errors, 68% profitable after 12 months
Routine = 11% win rate improvement
Professional Reality: Your routine is MORE important than your strategy. A mediocre strategy executed with perfect consistency beats an excellent strategy executed randomly. Why? Consistency allows your edge to play out over large samples. Routine = consistency = profits.
2Chapter 2: Pre-Market Preparation⏱️ ~5 min
90% of your trading success is determined BEFORE you click "buy" or "sell." Preparation is everything.
The 6-Step Pre-Market Checklist
Step 1: Mental Preparation (5 minutes)
- Close all non-trading tabs/apps
- 5-minute breathing exercise or meditation
- Read "Trading Commandments" (your rules)
- Detach from yesterday's P&L
- Set intention: "I will follow my process perfectly"
MY TRADING COMMANDMENTS (Read OUT LOUD every morning):
- I risk exactly 1% per trade. No exceptions.
- I NEVER move Stop Loss away from price.
- I NEVER take revenge trades after losses.
- I stop trading after 2% daily loss.
- I only trade pre-identified setups.
- I journal every trade within 30 minutes.
- If checklist incomplete = NOT AUTHORIZED to trade.
Step 2: Economic Calendar Review (10 minutes)
- Open Forex Factory or Investing.com calendar
- Filter for "High Impact" events only
- Note exact times (convert to your timezone)
- Identify affected currencies
- Mark "No Trade" windows (15 min before/after)
Step 3: Intermarket Scan (10 minutes)
- Check US 10-Year Treasury Yield (Rising = USD strength)
- Check S&P 500 / VIX (S&P up, VIX down = Risk-On)
- Check Gold (Gold rising = USD weakness)
- Check Oil (Oil rising = CAD strength)
- Establish macro bias BEFORE looking at forex charts
Step 4: Multi-Timeframe Analysis - MTFA (15 minutes)
- Daily chart: Mark trend, key S/R, unmitigated OBs/FVGs
- H4 chart: Identify MSS/BOS, mark liquidity pools
- H1 chart: Find potential entry zones
- Mark confluence areas
Step 5: Setup Shortlist (10 minutes)
- List setups from MTFA that meet criteria
- For each: Entry, SL (pips), TP, confluence count
- Set alerts 5-10 pips before entry zones
- Prioritize by confluence
Step 6: Risk Calculation (5 minutes)
- For each shortlisted setup, pre-calculate lot sizes
- Lot Size = (1% of account) ÷ (SL pips × pip value)
- Everything is READY when alert triggers
3Chapter 3: In-Market Execution & Monitoring⏱️ ~3 min
During the session, your job is EXECUTION and PATIENCE—not analysis (that was done pre-market).
Execution Protocol
When Alert Triggers:
Step 1: Verify Trigger (30 seconds)
- Price reached planned level? ✅
- Confluence still valid? ✅
- No news in next 30 min? ✅
Step 2: Place Order (30 seconds)
- Order type: Limit order at planned level
- Lot size: Use pre-calculated amount
- IMMEDIATE: Set SL
- IMMEDIATE: Set TP
- Verify: Risk = 1% ✅
Step 3: Walk Away (immediately)
- Take screenshot
- Close active monitoring
- Set next check time (1-2 hours later)
- Hands off the trade
Total time: 60 seconds from alert to execution complete
Monitoring Protocol
Rule #1: Minimal Checking
Check frequency by timeframe:
- M15 trades: Every 30-60 minutes
- H1 trades: Every 1-2 hours
- H4 trades: Every 4 hours
- Daily trades: Once per day
Study results: Traders who checked every 5 minutes: 42% moved SL, 44% WR. Traders who checked 1-2× only: 6% moved SL, 61% WR. More checking = more interference = worse results.
Rule #2: Permitted Actions ONLY
What You CAN Do: Move SL TO break-even, Take partial profit at T1, Trail stop, Exit if opposite MSS forms
What You CANNOT Do: Move SL away from price, Move TP further, Add to losing position, Exit because "it feels wrong"
4Chapter 4: Post-Market Review & Quiz⏱️ ~4 min
The Post-Market Routine
After the session, the review process turns experience into skill.
The 4-Step Post-Trade Protocol
Step 1: Immediate Documentation (10 minutes per trade)
- Screenshot: Capture chart with entry, SL, TP, exit marked
- Open journal, create new entry
- Record: Trade #, Date/Time, Pair, Entry/SL/TP, Lot size, Result
Step 2: Psychology Notes (5 minutes per trade)
- Pre-trade state: Emotional, FOMO, Confidence levels
- In-trade behavior: Chart checks, Urges to move SL/TP
- Post-trade reflection: Satisfied with execution? Any regrets? Lessons?
Step 3: Update Statistics (10 minutes)
- Add trade to running stats
- Update monthly tracker
- Calculate win rate, total R, average R per trade
Step 4: Platform Shutdown (5 minutes)
- Save all journal entries
- Close TradingView/MT4/MT5
- Set alarm for tomorrow's pre-market time
- DONE - no "one more check"
Mental transition: "Trading session is over. I am now OFF duty." Clear boundary between trading and life.
Summary
A Trading Routine is the operating system that turns your strategy into consistent execution.
Key Principles (0/6)
Professional Truth: Your routine is your edge enforcement mechanism. You might have a brilliant strategy, but without routine you'll execute it inconsistently. Inconsistent execution = edge disappears. Routine ensures your 60% win rate strategy ACTUALLY produces 60% wins (not 45% due to errors). Routine = edge protection.
Quiz
The primary purpose of the Pre-Market Routine is to:
The crucial in-market execution step that enforces risk management and prevents catastrophic losses is:
Which action is an ESSENTIAL part of the Post-Market Routine for continuous improvement?
The failure to calculate precise lot size based on Stop Loss distance BEFORE trade entry occurs in which phase?
Call to Action
🛠️ Stop trading from the hip. Start trading from the checklist.
Call to Action
Manage a book, not a bet. Make correlation checks and risk caps part of your routine.
Deriv
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XM
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Remember: Pilots with 15,000 flight hours still use checklists. Surgeons with 10,000 operations still follow protocols. Professional traders with 5,000 trades still run their routine. Routine isn't for beginners—it's for professionals who refuse to let complacency cause errors.
Prepare. Execute. Review. Repeat. Forever.
Prerequisites
Before studying this lesson, ensure you've completed:
Ready to build your operating system? A professional routine ensures your edge shows up every session.
Ready to continue?
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