Damn, I hate making trading mistakes.

As I have mentioned in the past, mistakes kill trading systems. So, here is a practical pre-trade checklist to help you knock mistakes on the head.

  1. Are you in the right state to trade? (About a 5 out of 7.)
  2. Are you breaking any of your written rules on this trade? (You do have written rules, don’t you?)
  3. Have you put the right position size into your trading system? (I hate to think how many times I have forgotten to add in the correct positon size!)
  4. Are your entry, stop and profit target all set correctly?
  5. Do you feel good about the trade?

If you fail on any one of these criteria: don’t trade.

Print this out or write it down beside you, and get in the habit of checking it before you trade. It will save you big $$$.

About the Author

Sam Eder is a currency trader and author of the Definitive Guide to Developing a Winning Forex Trading System and the Advanced Forex Course for Smart Traders (https://fxrenew.com/forex-course/). He is a part owner of Forex Signal Provider www.fxrenew.com (You can get a free trial). If you like Sam’s writing you can subscribe to his newsletter for free (https://fxrenew.com/newsletter-sign-up).