One thing I do that helps me to open good trades and avoid bad trades is a Forex Checklist. This checklist has a list of rules that must be in place before I enter a trade. I have found that by having a simple checklist in place it assists me in having the discipline to stick to my plan. The best part about having this list is that it is not complicated or difficult to remember. Actually, the list is very easy and after using it a few times, good trading habits begin to form. By using the forex checklist I have developed my trading profits has gone up because this technique has increased my trading winning percentage.
Our Recommended Forex Checklist
- First I identify the trend and look for trades that fall within the direction of the trend.
- Next, I find the signal that I will enter the trade
- Then I identify support and resistance points
- Lastly, I determine the amount that I am going to risk on the trade
After these steps are in place I then place the trade and log them in my forex trading journal. I think you will find that something as easy as a simple forex trader checklist can dramatically improve your trading. Trading doesn’t have to be complicated to be successful. It is best to keep it as simple as possible so not to outsmart yourself.
Please share in the comments below any type of checklists that you have developed that have helped you in your trading. Do you have a pre trading checklist? What does your forex checklist contain?That will help all of us become better traders as we share tips with each other.