Post Market Analysis; the Life of a Day Trader

Day traders make critical decisions during the business hours of any given markets throughout the world. A crucial part of trade execution relies on information from the day traders post-market analysis, which is scrutinised with the day’s preparation, and how that played out during the trade.

Successful day trading requires a careful analysis of why the market reacted with volatility or didn’t move as expected. None of this is possible without a thorough post-market study.

Day traders identify and execute trades, analyse market conditions and conduct timely market research. Looking at the market objectively, and keeping meticulous records should be part of the day traders role. Keeping track of the day’s trade often translates into a better post-market analysis.

After the trade has been conducted for the day in any given market, specific procedures give the day trader an ability to make better decisions for their next trading day. Recording what hours were traded, how much was traded, wins and losses during the trade (points, cents etc.) are all crucial.

The next part of post-market analysis should be to sit down at the end of the week and look at how to improve trade using demo accounts outside of trading hours. Over the month it will become evident how to change strategy, by looking carefully at fluctuations, and why this happens at a particular time.

Good traders often spend time reading about business and economic markets, as well as the social conditions and speculative news that may change trading conditions. While this may not address a specific trade, it may take some of the guesswork out of the reasons for volatility during post-market analysis.

Post-market analysis becomes more natural as the day trader accumulates more general knowledge as to why trade conditions are changing. This knowledge, plus the ability to keep good records, makes it easier to analyse a specific trade using industry software. This will make for better day trading over time.