I’ve seen it time and time again. Traders bust into the chat room at 9:27, double check the watch list posted, and by 9:36 they are in 3 positions! They have no clue where their stop levels or targets are, nor do they have any familiarity with the volatility or inherited risks in price fluctuations.
Over time, this is a recipe for disaster. My challenge to traders is to create a pre-market and post market routine to prepare and evaluate each trading day. This can include a review and look back at recent trades along with a plan of action for the upcoming day or week.
Although Sunday is typically refereed to as the day of rest, I jokingly consider it the day of work! I use each Sunday to create watch lists, update trading strategies, and go over key price levels for stocks I may be watching for the upcoming week. I find this time extremely useful, as it creates a different sense of focus then doing a similar analysis thirty minutes prior to the market open.
It never hurts to try. Besides, sleep is for the weak!