Learn to Make a Useful Trading List

Learn to Make a Useful Trading List

Having a checklist to follow before every trade is a great technique, especially if you are a trader beginner. This will help you avoid hasty decisions. If you notice that your negociação is influenced by emotions, this approach should definitely improve your strategy.

Checklists are an important part of almost every profession and help keep things in order. Following a checklist and maintaining strict order is virtually a guarantee of an orderly workflow. By putting tasks and organizing them on paper, we also organize our minds and track progress.

This can and should be applied in negotiations as well: there are many benefits to using checklists, and probably the most obvious is their simplicity. There is nothing simpler than joining a plan that is already outlined in front of you. Use the following helpful tips to create your own custom checklist when opening new trades.

1. Market Assessment

What are the market conditions in which you are about to negotiate? The outcome of the deal depends on your ability to assess the conditions you are currently dealing with.

In this checklist, you can put points such as market direction and trend strength, and based on that, make a decision about the timeframe in which you will trade and the strategy to be implemented.

Your checklist can be as detailed or concise as you like. Depending on your preferences, you can include indicators, support and resistance lines, or certain sources of market news on the checklist so that you remember to check and consider this information.

2. Commercial Specifications

Continue your checklist with a second section that will be more specific to the trade you are about to open. Here, the points you can write down would be the investment value, stop losses and take profit, as well as the deadline for the given trade.

Your decisions must be documented, so your checklist will be useful after the trade closes. You will be able to look back and assess your trading patterns and choices.

3. Risk Management

The third part of the checklist is the last, but just as important as the others. This is a “control yourself” section where you can check everything one more time before executing the trade order. The points in this section will help you control your trading from a risk management perspective.

Is the amount you are about to invest reasonable? Have you set the limits for exiting the trade at the right time? If the deal closes out of the money, can you bear the financial consequences?

Checking these aspects may seem time-consuming and excessive, but it is really important to do so in order to make more conscious and rational choices.

Having a checklist will help you carefully evaluate the trade you are about to open, eliminating as much as possible the emotional component that prevents many. traders make rational decisions.

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