Avoid Trading Mistakes

My Checklist

Trading Checklist

We’ve all done it. Seen something on a chart, then convinced ourselves that we must take this trade RIGHT NOW, it’s life or death! Open the ticket, click, filled. Then it dawns on us…

We realise that this perhaps wasn’t the best trade… Start scrambling around for a place to put our stop and don’t really have a plan on how to manage the thing.

Sometimes we get away with it, but it’s not a good way to trade.

Today, before you take any trade, consider running through this quick checklist…

  1. What’s my trade idea?
    • Is it a level-to-level trade?
    • Do I expect the market to trend?
  1. Where’s the risk?
    • Any headline risk
    • Where does the stop really need to be (likely not just under a level)
  1. What’s the best entry price to express this idea?
    • Where would be a great entry price? (not always right now)
  1. How do I plan to manage this trade?
    • Hold until stop or target?
    • Hold for a period of time?

Increasing Profits while Decreasing Risks

I like a lot of what SMB does on their channel and they recently dropped a new video with Lance B – How to increase profits while decreasing your risk (Experienced Trader).

Well worth a watch.