Developing Your After Market Routine
Just as your pre-market routine is critical to your trading success, your after-market routine plays an equally important role. Although after hours trading isn’t as common (due to lack of liquidity), the most important thing you will do is evaluate the days performance. This will allow you to record all of your trades for performance evaluation (and tax records) and identify positions that might need further review.
Your after market routine will not only consist of determining your successes of the day, but your early preparations for the following days trades. You’ll want to pay attention to any after hours announcements (especially earnings) to determine if they will impact your trading strategies for the following trading day, you will want to take time to review your newsletters (free and fee based subscriptions) and see if there are securities you should be considering adding to or dropping from your portfolio.
After reviewing all of the information that you need, you will want to review your trade plan and see if any adjustments need to be made or if your current strategies are still valid. Recalculate your portfolio and see if any of your positions have gone outside of your trading plan boundaries, prepare your buys/sell, and tactics that are outlined in your trade plan.
If you are satisfied with your positions, there is no need to modify your trade plan, however if you feel that different sectors need to be explored this is a good time to decide what moves will improve your overall trading position.
Keep in mind that a solid foundation that you develop for both pre and after market routines will help you reach your trading objectives whether you are a seasoned day trader or brand new to trading.
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