🎯 5 Essential Trading Entry Checklist - Smart Trader's Guide
Before you let your emotions take over, check these critical points after entering any trade!
1. Position Size and Risk Level ⚖️
Check if your position aligns with your risk management strategy. Never risk more than 1-2% of your portfolio on a single trade. Review your stop-loss placement and potential loss amount.
2. Market Direction and Momentum 📊
Confirm the overall trend direction using multiple timeframes. Look for momentum indicators like RSI and MACD to validate your entry. Strong trends should show clear directional movement.
3. Key Support/Resistance Zones 🎯
Identify nearby support and resistance levels that could impact your trade. Mark important price zones where market reactions are likely. Watch for any potential reversal points.
4. Trading Volume Analysis 📈
Verify if trading volume supports your position. Higher volume during trend continuation signals stronger moves. Low volume could indicate weak price action and potential reversals.
5. Risk-Reward Ratio Assessment 💹
Calculate your risk-reward ratio. Aim for at least 1:2 - meaning your potential profit should be double your risk. Adjust targets based on market conditions.
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