Forex Trade Check List – Be a Forex Pro

Over 80% of my trades are successful.

Last week I was trying to think of articles to write. Then it dawned on me, I win more than 80% of my trades. So I should analyse why I win the majority of my trades and write a series of articles, explaining my secret.

“What is a Trade Check List?” you may be asking. For me, it is a mental list which sets out strict criteria that a potential trade must fit into. If a potential trade does not fit into my criteria I most likely will not enter. However, if the potential trade falls into my entry criteria I will enter.

For me, a Trade Check List is a very effective way of filtering out bad trades. My Trade Check List also helps keep me on track and helps me to stick to my plan. My Trade Check List is part of the reason why I profit on over 80% of the trades it take.
If you’re a newbie you should probably commit your Check List to paper, or at least to a notepad/word document.

Putting Together a Check List
Putting together a Check List requires you to define a good trade set up. So if you trade pivot point break outs a good set up may be a strong trend breaking a pivot point. In my case, I trade mainly reversals so a good set up for me is a strong trend in which indecision forms. In addition, I want to see a transition of power, so if the strong trend is bullish and indecision forms I want to see a transition of power, from the bulls to the bears. On my list this translates to:

• Are there strong signs of indecision?
• Who currently has control of the market, the bulls or the bears?
• Is a transition of power likely and have I selected a suitable entry point?

Those first three questions on my Check List help me filter out weak set-ups, that I should not be taking. They also help me to select the best entry point. The next items on my Check List help me to manage my trade.

• Are there any significant areas of support or resistance nearby? (see what happens when I ignore this item on my Check List)
• Are any significant news releases due out that could impact this trade? (see this post for an easy way to be prepared for news releases.
• What is my stop and target on this trade?
• Does the answer to the previous item fall within the parameters of my money management strategy?

Print It Baby!

There must have been a forest in China sacrificed for me to become a professional trader. As a newbie, I could never remember all of the items on my Check List when I was preparing to enter a trade. And even if I did remember all the items, I found it hard to follow them if they weren’t committed to paper in front of me. For this reason, I printed stacks of these Check Lists and kept them on my desk ready for a trade. As soon as I saw a set-up, I would answer the questions on the Check List live and if all the answers were good I would enter.

I actually found one of these old Check Lists on my hard drive yesterday so I thought I would share it. Please print it on recycled paper :)

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