Ever jumped into a trade you immediately regretted?
Everyone’s been there.
You need to be trading off a well-thought-out trading plan, not impulse or emotion.
These 6 questions will help you identify a high-quality trading opportunity, and help you figure out if your next trade is worth your hard-earned money:
1. Daily Chart Trend
The big picture is what matters most in trading. Intra-day trend means nothing unless its aligned with the daily trend.
2. News Catalyst
Catalysts bring in high-relative volume. As a result, stocks will have the strongest trends and cleanest moves after a strong news catalyst is announced.
3. The Trading Setup
Every trader needs to know their go-to setups. There are thousands of stocks moving every day. Most have setups you don’t have an edge with. Study your trading data, and only trade your best setups.
4. The Trend
Know the trend. There are times to take a counter-trend trade, and times to trade with the trend. Always know which type of trade you’re taking BEFORE you enter.
5. Your Risk
Your max pain. Every trade is much less stressful when you define the worst-case scenario.
6. Your Trading Plan
You NEED to know all these price levels before getting in. You should never be figuring out your trading plan after you enter. The trade is 10x easier when you have it planned out. No plan, no trade.