Damn, I hate making trading mistakes.
As I have mentioned in the past, mistakes kill trading systems. So, here is a practical pre-trade checklist to help you knock mistakes on the head.
- Are you in the right state to trade? (About a 5 out of 7.)
- Are you breaking any of your written rules on this trade? (You do have written rules, don’t you?)
- Have you put the right position size into your trading system? (I hate to think how many times I have forgotten to add in the correct positon size!)
- Are your entry, stop and profit target all set correctly?
- Do you feel good about the trade?
If you fail on any one of these criteria: don’t trade.
Print this out or write it down beside you, and get in the habit of checking it before you trade. It will save you big $$$.
About the Author
Sam Eder is a currency trader and author of the Definitive Guide to Developing a Winning Forex Trading System and the Advanced Forex Course for Smart Traders. He is a part owner of Forex Signal Provider fxrenew.com (You can get a free trial). If you like Sam’s writing you can subscribe to his newsletter for free.
This post was first published here.