5 Questions Before You Take your Next Trade
With each trade you take…
There are these 5 standard questions you’ll need to ask an answer.
Jot these down and have them ready…
Do I Have a Trade Lined Up?
When you go through your watchlist.
You need to see any opportunities in the market that align with your trading strategy.
These should stick out like a sore thumb.
If it’s not, then it’s probably not a high probability trade.
It’s important to analyze the market trends and indicators to identify potential trades.
This will help you to make informed decisions and avoid taking unnecessary risks.
Do I Have a Trading Strategy?
Once you have identified a potential trade, it’s important to have a solid trading strategy in place.
Your strategy should outline the rules for entering and exiting trades, as well as risk management guidelines.
Follow your strategy and avoid making impulsive decisions based on emotions or market rumors.
Where Should I Place My Trading Levels?
You got the strategy so now you have to set up your trading levels.
(Entry, Stop loss, Ghost level, Take profit levels)
Are you using Order Blocks, key support and resistance levels, patterns, indicators or trend lines?
Whatever you use, keep consistent to determine where to place your trading levels.
This will help you to choose your trading levels based on the R:R for each trade.
How Much Am I Trading?
Trade size is crucial.
You need your calculator to work out your risk per trade.
This will help you to manage your risk effectively and avoid making emotional decisions.
Your risk management plan should outline the maximum amount you are willing to lose on any given trade, as well as the maximum percentage of your trading account you are willing to risk.
What Is My Exit Strategy?
exit strategy should outline the conditions under which you will exit a trade.
So you’ll know where to cut your small losses, ride your winners, lock in profits, or even adjust your take profit levels when the markets move well in your favour.
Also, make sure you stick to your exit strategy and avoid making emotional decisions based on market fluctuations.
THEN YOU’RE READY TO EXECUTE!
Once you have gone through the five questions…
It’s time to ask yourself whether you are truly ready to take the trade.
Focus your mind, clear the distractions, confirm everything is ready to go…
That takes emotional discipline.
You got the questions, now go start asking and answering them with your trading…
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Enjoy and remember…
You won’t need to buy or order another book on chart patterns and candlesticks ever again as I will be updating it very often and will let you know.
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