I’D LIKE to start my final column by inviting you to a round-up webinar taking place 5 May 2011 at 8pm. It’s free and will be an opportunity for you to ask questions and see the strategies I have described over the last eight weeks. Register on:
Before I sign out, I want to go through with you the checklist that I use daily. It has become an essential part of my proprietary trading, especially because I trade both currencies and indices, and both intraday and over several days.

What is Asia doing? Every morning I go to Yahoo Finance and see what the Asian indices are doing. If they are all up, I expect a bullish Europe.

I go through the major currencies (dollar, sterling, yen and Swiss franc) and their crosses on the weekly, daily, four-hour and 60-minute chart. I look for patterns, double tops, trendline breaks, and anything else that I can use to gauge for direction for the day. I also look for Fibonacci ratios and expansion of range bars. In total, it amounts to 40 charts, and it takes me about 30 minutes. I make notes next to each pair where I see something of interest. It means I am ready for the trading day.

I trade indices off a tick chart, but I still need to know what the daily and weekly trend is in indices.

Once the trading day is over, the hard bit starts. Trading in itself is fairly mechanical, although controlling the emotions is something I have to be vigilant about every day. I easily get over-confident and trade way too big. After the day is over, it is time to ask the three Ws: Why did I do that?; What could I have done instead?; What did I miss today? I have learned more from going over the trading day than any course I ever attended or any book I have ever read.

Happy trading – See you online on 5 May.

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