21. CheckList
A trading checklist is a crucial tool for any trader, from beginner to professional. It’s a structured list of tasks and questions you must complete before, during, and after a trade. Its main purpose is to enforce discipline and consistency, which helps to minimize emotional decision-making and reduce costly errors.
A good checklist acts as your personal trading plan, guiding you through every step of the process. This helps you stick to a strategy, manage risk effectively, and avoid impulsive actions driven by fear or greed. By systematically checking off each item, you ensure that you are following your predetermined rules and not just “winging it.”
Here’s a breakdown of what a trading checklist might include:
Pre-Trade Checklist:
Market Analysis: What is the overall market trend? Are there any major news events or economic data releases today that could affect the market?
Trade Setup: Does this trade meet all the criteria of my strategy? Have I identified clear entry and exit points?
Risk Management: What is my maximum risk for this trade? Have I set my stop-loss order? Is my position size appropriate for my account balance?
In-Trade Checklist:
Execution: Have I executed the trade at the planned entry point?
Monitoring: Am I sticking to my original plan, or am I being tempted to make changes based on emotional reactions?
Adjustments: If I need to adjust my stop-loss, am I following my rules for doing so?
Post-Trade Checklist:
Review: Did I follow my plan exactly? What did I do well, and what could I have done better?
Journaling: Have I recorded the trade details, including my thought process, the outcome, and any lessons learned?
Performance: How does this trade affect my overall performance metrics?
By consistently using a trading checklist, you can transform your trading from a chaotic, emotional exercise into a clear, methodical process, ultimately leading to greater clarity and success.
💰Quotes:
“Enter the trade — then sit on your hands like a monk!”
“We don’t click and panic. We click and chill.”
“Traders who wait, get paid. Traders who fidget… donate!”
“We enter the trade, then do absolutely nothing like pros.”
“Let the market work. You’re not its boss.”
💰Normal Tone Slogans:
“Enter with a plan, then let the trade play out.”
“The work is in the setup — the result comes with patience.”
“We don’t babysit trades. We trust our edge.”
“Entry is action. Waiting is discipline.”
“After entry, emotion has no place — only patience.”
Trading can feel like you’re strapped to a rocket that’s either soaring to the moon or crashing back to Earth with a spectacular explosion. That’s where a trading checklist comes in—it’s basically your pre-flight safety routine, but for your wallet.
Think of it as your sober, slightly boring best friend who stops you from making terrible decisions at 2 a.m. It’s a list of everything you need to do and check before, during, and after a trade. Its main job is to put a muzzle on your inner trading gremlin—that little monster that screams “buy it now!” or “sell everything!” based on a hunch or, worse, a lucky feeling.
Here’s a sneak peek at what your trading gremlin’s worst enemy looks like:
Before You Hit the Big Red “Trade” Button
Did I find a good-looking setup? Is this trade actually part of my master plan, or am I just chasing a shiny new stock because everyone else is?
Have I checked the calendar? Is some big, scary economic news coming out today that could turn my genius trade into a fiery wreck?
Where’s my parachute? Did I set a stop-loss? You know, that magical point where you gracefully bow out of a trade before it gets awkward and you lose your shirt.
What’s my ammo count? Am I risking a reasonable amount, or am I betting the entire farm on this one trade? Spoiler alert: don’t bet the farm.
While the Trade Is Happening
Is my hand off the mouse? Am I resisting the urge to mess with my perfectly good plan just because the price wiggled a little bit?
Am I feeling a little sweaty? If so, why? Am I panicking, or is my trade just going through a normal, non-panicky phase?
Am I still sane? Is my emotional state still in check, or am I ready to jump out the window because of a red candle?
After the Dust Settles
Did I do what I said I’d do? Did I stick to the plan like super glue, or did my trading gremlin take over and buy me a bunch of useless widgets?
Time for a post-mortem. What went right? What went wrong? Why did I think that was a good idea? Journaling this stuff is like therapy for your trading account.
Am I ready for the next round? After all that, am I good to go again, or do I need to take a breather and stare at a wall for a few minutes?
In short, a trading checklist helps you trade like a cool, calm robot, not a jittery, caffeine-fueled squirrel. It turns the chaotic market into a repeatable, methodical process, so you can trade with a bit more clarity and a lot less chaos.
💰Quotes:
“Enter the trade — then sit on your hands like a monk!”
“We don’t click and panic. We click and chill.”
“Traders who wait, get paid. Traders who fidget… donate!”
“We enter the trade, then do absolutely nothing like pros.”
“Let the market work. You’re not its boss.”
💰Normal Tone Slogans:
“Enter with a plan, then let the trade play out.”
“The work is in the setup — the result comes with patience.”
“We don’t babysit trades. We trust our edge.”
“Entry is action. Waiting is discipline.”
“After entry, emotion has no place — only patience.”