Trading Checklist

Getting stuck in a losing streak is harsh, especially if your just a beginner. Trying to figure out where you went wrong is not easy for someone who's not that familiar with the ins and outs of the stock market. Even though every trader has a different methodology, there are common components that you have to go over. You can do all the research that you can but all data can only tell you want happened before not guarantee what will happen in the future. If you are in a losing streak, its time to go over your trading plan or rules. You can't change how the market behaves but you can find out why your trading methods are not profitable and turn them around. You need to look over your last 5 or more trades.

Checklist Planning

• Trade: Was your set up well suited to your plans?
• Entry: Did you identity the price that signals the start of the trade?
• Exit: Did you identify the correct price for your stop loss? Did you decide a target to take profits?
• Position: Did you calculate the correct number of shares that suits your money management strategy?

Executing your Trade

• Entry: Did you start the trade at the right time? Did you enter as soon possible when the trade started but not right away?
• Exit: Did you exited at your planned stop loss, target price or trailing stop? Did you stick to your exit strategy?

Trading Log

• Did you document your trade, including details and reflections?

A disciplined trader will be able to say yes to all or 90% of the questions above. Apart from that you also need to remember to have more winning trades than losing ones. Instead of hitting a few but missing many, make sure that you also accumulate more profits from winning trades than losing trades. Every time you lose, you need to earn twice to be able to cover your losses and earn money at the same time.