Monday, December 10, 2018

Opportunity Plus Preparedness Equals Good Fortune. A Daily Trading Checklist to Keep Me Focused.

DISCLAIMER: The information presented here is for informational purposes only. These are not trade recommendations. Please follow your own trading plan. Trading is extremely risky and you may experience substantial losses.

Here's a  checklist I use to help me get oriented and focused during trade preparation and analysis:
  • Is the market trending or stuck in a range? 
  • Which direction is the market moving? 
  • What levels did the market move from? 
  • What are the key levels of support and resistance? 
  • Was there significant volume? 
  • What is the ATR?
  • At what area would I be interested in entering a trade? 
  • At what market level would I clearly be proven wrong? 
  • Is there rationale for a trade in the opposite direction to my analysis?
The last item is particularly important.  I purposely analyze the market from the opposite perspective from my initial gut reaction.  I find the exercise useful in catching subconscious biases and filtering for high quality trade situations.

After reviewing the above checklist for each market I then consider specific trade opportunities.

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