Questions to ask Yourself Before Every Trade

By | May 30, 2014
  • What is the overall direction the market is moving with in your time frame and the larger time frame?

 

  • What time frame will you be trading with your next trade?

 

  • What is your entry signal and what is its historical performance as a winning set up?

 

  • How much money will you risk on this trade?

 

  • How big will your position be for this trade?

 

  • How will you know you are wrong and stop your loss?

 

  • How much profit do you believe is possible if it moves in your favor?

 

  • How will you know when it is time to exit with a profit?

 

  • What is your ratio of reward versus risk?

 

  • How many trades will you have on at any one time?

2 thoughts on “Questions to ask Yourself Before Every Trade

  1. Sathya S

    I have a challenge in deciding when to exit. I generally use te Moving avg lines on the chart. I keep an exit when it breaks but there r most times when it would reverse soon. Your thoughts? I trade intraday.

Leave a Reply