✅ 4 VERIFICATIONS TO DO BEFORE EACH TRADE 🧠
Before clicking on Buy or Sell, take a moment to perform these four essential checks. They will help you avoid common mistakes and improve your trading performance.
1️⃣ IDENTIFY A CLEAR SETUP 🔍
Make sure to have a precise technical setup before entering a position. This can be a recognized chart pattern, an indicator signal, or a well-established trend. Entering without a setup is like navigating without a compass.
2️⃣ DETERMINE YOUR EXIT PLAN 🎯
Before entering a position, define your profit objectives and your stop loss levels. This will allow you to manage your risks and avoid impulsive decisions during the trade.
3️⃣ EVALUATE THE RISK-REWARD RATIO ⚖️
Analyze whether the potential gain justifies the risk taken. A good risk-reward ratio is generally greater than 1 to 2. This means that for every unit of risk, you aim for at least two units of gain.
4️⃣ CHECK MARKET CONDITIONS 🌐
Consult economic news, important announcements, and the current market volatility. Unforeseen events can affect your trades. Ensure that conditions are favorable to your strategy.
🧠 IN SUMMARY
Taking the time to perform these four checks can transform your trading approach. It will help you make more informed decisions and improve your results in the long term.
🔁 Share this checklist with your fellow traders and comment below if you have other essential checks to add.
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