Trading Decision Flowchart - Checklist Before placing tradeTrading Decision - Checklist Before placing trade
Traders always encounter a thought when analyzing their trade history - I would have been in this much profit if I had avoided this particularly trade/trades(mostly losing trades). There are many reasons behind why traders take up some trades which they should not be taking - reason could be fear of missing out, recovering losses, revenge trading or simply boredom trade.
One of the essential thing needed to become a good successful trader is to avoid certain trades where
- You don't have conviction
- You are Over-trading/Revenge trading
- You have already lost your day's worth of losing limit you have set for yourself
- You don't have proper setup
- You don't have a Good Risk Reward Ratio
- Target does not look easy
- Trade does not fit on your trading rules
- and so on.
Traders should try to avoid these trades- one such tool which will be useful will be a trading checklist - which should be checked before placing any trade. This idea is to share one such checklist that I use for trading NIFTY/BANKNIFTY options.I hope this is useful to some folks out here.
Cheers,
Santosh
