✅Checklists
Trading Checklists to Follow
Pre-Trade Analysis Checklist
Market Conditions:
Identify the overall market trend (bullish, bearish, sideways).
Check for major economic news or events that could impact the market.
Stock Selection:
Ensure the stock aligns with your trading strategy (momentum, reversal, etc.).
Review the stock's fundamentals for longer-term trades.
Technical Analysis:
Analyze charts for entry and exit points.
Identify key support and resistance levels.
Look for patterns and indicators that support your trade idea.
Volume and Liquidity:
Check the stock's average volume to ensure liquidity.
Verify that the bid-ask spread is acceptable for your trade size.
Risk/Reward Analysis:
Determine the potential reward and compare it to the risk.
Ensure the trade meets your minimum risk/reward ratio criteria.
Position Sizing:
Decide on the amount of capital to allocate based on your risk management rules.
Calculate the number of shares or contracts to trade.
Entry and Exit Plan:
Define your entry point, target price, and stop-loss level.
Plan how and when you will exit the trade, whether in profit or loss.
Post-Trade Review Checklist
Trade Execution:
Review if the trade was executed according to the plan.
Note any deviations from the planned entry or exit points.
Performance Analysis:
Evaluate the outcome of the trade (profit/loss).
Assess whether the risk/reward ratio held true for the trade.
Emotional Assessment:
Reflect on your emotional state during the trade.
Identify any emotional decisions that impacted the trade outcome.
Lessons Learned:
Document what worked well and what didn't.
Note any patterns or tendencies in your trading that you need to address.
Strategy Adjustment:
Decide if adjustments to your trading strategy are needed based on the trade outcome.
Plan how to implement these adjustments in future trades.
Risk Management Protocols Checklist
Daily Loss Limit:
Set a maximum daily loss limit after which you stop trading to avoid emotional decisions.
Trade Risk Limit:
Determine the maximum percentage of your capital you are willing to risk on a single trade.
Stop-Loss Orders:
Always use stop-loss orders to limit potential losses.
Review the placement of stop-loss orders to ensure they provide adequate protection.
Position Sizing:
Use position sizing to control risk, ensuring no single trade can significantly impact your capital.
Diversification:
Avoid concentrating too much capital in a single sector or stock.
Spread risk across different assets or strategies.
Regular Reviews:
Conduct regular reviews of your portfolio to assess risk exposure.
Adjust your positions and strategies based on changing market conditions or in response to losses.
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