👉 1. Is the market trending or ranging?

Experienced traders all understand that a trending market is the easiest to trade and offers the best profits. The stronger and more sustainable the trend, the more profit it brings.
In a trending market, don’t try to enter trades against the trend or you might burn your account.

👉 2. Are there any important support and resistance levels near the entry point?

Support/resistance levels are numbers that the price respects and there is a high likelihood that good trading signals will appear there.
After breaking a support/resistance level, the price will form a trend. This could be the start of a new trend, a continuation of the trend, or a reversal. These are all good trading opportunities.

👉 3. What is the Risk/Reward ratio?

Don’t enter every trade just because you see a signal. Remember to check the risk/reward ratio before entering a trade.

👉 4. How much risk are you willing to take for this trade?

Every trade carries the potential for losing money. Therefore, don’t forget to calculate the amount you could lose (if wrong) before entering a trade.
Many traders 'burn' their accounts by using high leverage for 'sure' signals. Remember, there are no signals that are guaranteed. Therefore, reducing leverage is also a way to minimize risk for you.

👉 5. Are you following your trading plan?

All of the above aims to control trading psychology. Avoid getting confused after entering a trade when the price moves in the opposite direction. It would mean nothing if the checklist is satisfied but does not align with the trading plan.

#MarketDownturn #BTC☀