I remember back when I was working as a management consultant. The weekend seemed to always just fly by. Nowadays I sometimes forget what day of the week it is. There is however one ritual that remains the same. It wasn't always this way, but I realized it's important to stick to it.
Every Sunday I plan "The Week Ahead". As a management consultant I would do a quick stock take of what clients I'm going to see. Will I be going to the office or driving to my client site, how far is it, what is my goal. Sunday night for that reason was somewhat depressing, haha, the weekend had just arrived and already I had to try and get to bed early.
That routine seemed to be the same flying all over Canada, the US, as well as living in the Netherlands, Belgium, and Switzerland. I think we all have that dreaded Sunday routine.
When you start trading full time you tend to have more time on your hands and one constant stays the same. The Week Ahead.
Sure you could do without it. You could just get up Monday morning and wing it. You might even do well. Mentally preparing the week ahead gives you an edge, a piece of mind. And it lets you plan your week somewhat.
The most important thing to plan ahead is the Economic Calendar. What's coming up on Monday and all the days after that. It's also a good time to do technical analysis on your favorite pair(s). I try to stick to one or two. Sure I can trade them all however I find focusing on just one keeps my mind clear and focused. And of course I can still dabble on some other trades on the fly.
Monday I typically view as my getting back into trading mode day. Back in the day as a management consultant this was typically the day I would shake hands, kiss babies, have some meetings, and plan the week ahead. Nowadays I do Yoga first thing Monday morning, then surf the net, do some research, download some TV shows, and tune into the market just to see what's going on. My trading I like to keep to Tuesday, Wednesday, and Thursday. You've probably heard the saying "Don't Buy a Car that was made on a Monday or Friday" or "Never fire someone on a Monday or Friday". It's psychology. Monday's are getting back into the swing of thing days, not much gets done and we aren't at our peak until Tue/Wed/Thr and once Friday roles around we are already approaching weekend mode.
The Market is no different. Mondays typically set the direction. Like a race horse out of the gates, you can't gauge it's potential just yet. You have to wait until a lap and see how it stacks up with the others. Depending on the News and Market Sentiment Tuesday typically confirms the direction and then one is able to get a better feel of where the market is headed and if it's trade-able. Friday is somewhat of a write off as most people close their positions and that creates some volatility that can make you think twice about ever trading again on Friday.
That's the way I see it. Perhaps Mondays and Fridays are your best times to trade. To each their own. All that matters is that you're planning for the week ahead and you're consistently making profitable trades.
Have a great week ahead!
