The 5-Step System That Saved My Portfolio (And My Sanity)
After blowing up my account multiple times in 2022, I developed a simple checklist that changed everything. These aren't just trading rules - they're the guardrails that prevented me from making emotional decisions that used to cost me thousands.
My Pre-Trade Ritual:
✅ Entry & Exit Blueprint
I never enter a position without knowing exactly where I'm taking profits and cutting losses. Every successful trade in my portfolio was planned while emotions were neutral, not during the heat of market movement.
✅ Position Sizing Reality Check
I ask myself: "What percentage of my portfolio am I willing to lose on this trade?" If the answer makes me uncomfortable, I reduce the size. This single rule has saved me more money than any technical analysis.
✅ The "Why" Test
If I can't explain to myself in one clear sentence why this trade makes sense, I don't take it. Weak conviction leads to panic selling at exactly the wrong time. Strong thesis equals calm hands during volatility.
✅ Know Your Breaking Point
Before hitting buy, I define exactly when I'll accept I was wrong. Whether it's a specific price level or a fundamental change in the project - having this predetermined removes ego from the equation.
✅ Time Horizon Clarity
Am I day trading this momentum? Swing trading this setup? Or building a long-term position? Different timeframes require completely different mindsets. Confusion here leads to premature exits and missed opportunities.
This framework transformed my trading from gambling to systematic wealth building. The difference isn't just in profits - it's in the peace of mind knowing every decision has a logical foundation.
Part 2 of my checklist covers the psychological and technical aspects that complete the system.
What's the biggest trading mistake you've learned from?
