"Everyone has their own trading preferences, systems and psychology, however, one thing we can probably learn from each other, is the question we ask ourselves before we enter a trade. What is the question you ask yourself before you enter each trade? For me, it’s a good mix of lessons I have learnt over time and after filtering through all the marketing hype and what not, all boiled down to this question:
 | "What Question Do You Ask Yourself Before You Enter a Trade?" |
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Before entering a trade, asking yourself the right questions helps you reduce risk, avoid emotional decisions, and stick to a solid trading plan. Here are the key questions to ask yourself:
🔍 Market Analysis Questions
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What is the current trend?
Is the market bullish, bearish, or ranging?
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What is the setup or signal that triggered this trade idea?
E.g., a moving average crossover, support/resistance break, candlestick pattern?
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What is the timeframe I’m trading?
Am I looking at intraday, daily, or swing trade levels?
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Does this trade align with my overall market view or strategy?
💰 Risk Management Questions
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How much am I risking on this trade?
Is it within my acceptable risk limit (e.g., 1–2% of capital)?
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What is my stop-loss level and why?
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What is my target level and why?
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What is the risk-to-reward ratio?
Is it at least 1:2 or better?
🧠 Psychological Readiness Questions
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Am I emotionally calm and focused?
Am I trading out of boredom, revenge, or FOMO?
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Am I okay with losing this trade?
Can I accept the outcome without regret?
🧾 Trade Planning Questions
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Have I followed my trading plan?
Is this trade part of my tested system?
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Have I double-checked news or events?
Are there any economic releases or earnings reports that could cause volatility?
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What is my exit strategy?
Will I scale out, move the stop-loss to break-even, or trail it?
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What will I do if the trade goes against me quickly?
📈 Post-Trade Reflection (for after the trade)
- Did I follow my rules?
- What can I learn from this trade?
By asking these questions consistently, you’ll become more disciplined and objective — two key traits of successful traders. Would you like a printable version of this checklist?
“If I enter this trade, am I confident enough to not modify the system I have during live price action?”
That’s coming from my own experience, would love to hear other questions from the community!" |
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