Pre-trade checklist
Ten questions to answer before you enter.
Idea
- Is there a clear scenario: level, structure, reason to enter?
- What invalidates this scenario?
- What is the higher timeframe and where is it pointing?
Risk
- Where is the stop and why there?
- How much do I lose at the stop, in money and as a share of the account?
- Is the position size computed from the stop?
- What is the R:R? At least 1:2?
Conditions
- Is there major news in the next few hours?
- Am I trying to win it back, or entering out of FOMO?
- If price goes against me, can I accept the stop without moving it?