We all have some sort of routine to start our morning - after all, it what allows us to be efficient in setting the tone for the rest of the day. 

So what the best way to start your trading day? Is there a certain routine you should follow to train your focus on making the right decisions throughout the trading day? 

While every individual may have their own routine, here are three steps that investors and traders alike may wish to consider incorporating into their trading routine.

In the meantime, learn here about managing biases as an investor.

1. Establish Good Habits

Waking up early before the market opens should give you enough time to prepare mentally and digest any major news events that could have repercussions for the market. 

On the other hand, if you wake up just before the market opens, you start the day with a disadvantage compared with other investors or traders in the market who have brushed up on company news and also crunched the data from abroad before the trading session commences. 

In reality, it is common for investors to lose a sense of control over things when you don't understand what is driving them, often reacting to markets in a nervous manner. 

One of the last things that any trader or investor should want is to be investing in the market in an emotional manner, as it is widely recognised this has the potential for individuals to make hasty or irrational decisions.

2. Catch Up on Overnight Events

In today era, financial markets truly are a 24/7 affair. 

Yes, the ASX and US markets may only trade certain hours each business day, but with the likes of futures and commodities markets operating outside these hours, and cryptocurrency trading every day around the clock, there is always something going on.

That why it pays to be aware of what is happening in financial market circles. 

Even if it is in another jurisdiction, or a different asset class for that matter, the interconnected nature of today financial system means that something happening in another corner of the market has the potential to affect the ASX or US stock markets.

One of the most insightful ways to start the day is to catch up on overnight events before the market opens - things like, offshore market indexes, commodity prices, company-specific news, regulatory or political developments, and the like.

Futures markets will often provide a barometer for where the market is poised to open, although take note, this may not necessarily be accurate, and it only provides a gauge for the expected open, not what follows thereafter.

News sources such as the AFR, Bloomberg, CNBC, and Wall Street Journal provide detailed coverage on all matters related to financial markets, but you can also read the Selfwealth blog for key stock market news, and tune in to Selfwealth Live every Wednesday for unique market insights.

3. Identify Your Goals for the Trading Day

Before the trading session opens, it helps to have a rough idea as to what your intentions and goals might be for the day ahead. If you don't intend to make any trades, that perfectly fine. That in itself is a goal'. Long-term passive investing - or a buy-and-hold investment strategy - has been one of the most successful methods of investing over time, responsible for wealth creation among names like Warren Buffett and co.

However, maybe you are looking to accumulate shares in a stock you already own, or you are looking at a new stock based on some of the overnight developments you've read. If either of these options could be a goal, it time to get started on your research. After that, set yourself a target price and volume for the stock that you wish to buy - you need to know these things before you can place a bid.

On the other hand, if you are an active trader, things may be a little different. But waking up and deciding you want to make lots' of money is not only unrealistic, it won'thelp guide you towards achieving anything tangible. 

The first couple hours after fully waking up are often associated with the period many individuals are most productive during the day. If you are an active trader, and you have the chance, this time should be used to decide what you will trade, and what strategy will be most useful to help you during the session. 

As an active trader, you may wish to focus on what you perceive could be the most profitable, high probability trades that may emerge during the day. Alternatively, you might wish to set a specific dollar target you are looking to make. Nonetheless, using this time efficiently ensures you head into the day with a realistic plan and can then focus on executing it.

Read here for the differences between investing and trading.

Why a Routine Helps

Having a routine is the easiest way to ensure your trading day gets off to the right start.

It can be particularly useful to plan what needs to be done each morning to avoid procrastinating. Sometimes, something as simple as buying or making a coffee can be the starting point for your routine. Once you are ingrained in a routine, this action triggers a habitual response from your brain and associates the activity with a readiness to start work. 

It follows that if you establish a routine, not only can you hit the ground running, but you set the foundations for your concentration and efficiency to follow during the trading session.