Checklist is the necessary and essential part of your trading plan!

If you already have a trading plan (if you don’t don’t worry next weeks newsletter) - that’s awesome. Now it’s time to take one step further and create a checklist. You will refer to it before each and every trade, and you’ll enter only if 100% of the checklist is present. I other words you don’t do anything if all of your rules aren’t met.

You can have different trading plans, like a big paper with 5 or even 50 pages, that explain how you want to trade. But the problem is, sometimes people start breaking their own rules just a little bit. They take trades that don't really fit with their plan. This can be really bad for their trading account. It's not usually because their strategy is bad, but because they start taking random trades that aren't part of their plan. This can happen when they let their emotions take over and make quick decisions. It can happen in just a few hours and end up causing a lot of damage to their account.

That's why it's really important to have a short and simple list, usually with around 10 sentences, that describes step by step what you should look for before making a trade. You can even go through each point on the list before starting a trade (I always do). Over time, you'll remember the list perfectly, but it's also important to honestly follow it without checking every single time. Following the rules is a skill all on its own and it's very important too.

Do you want to trade randomly?

Think about it. Many traders are always looking for "something else," a new strategy. Instead of focusing on one specific idea or system, they quickly move on to the next one as soon as they face some normal losses. Instead of going deep into the core of trading, which I believe is perfecting one strategy, they stay on the surface for years.

Sometimes they do find a strategy they like and it starts to show some results. But after some time and when they experience strong emotions like excitement after a win or fear and anger after a loss, they start breaking their own rules. A beginner can be so emotional that they make random trades, one after another, within just a few hours, and end up losing a big part of their trading account.

There are many other problems behind such inefficient behavior, but having a checklist is one of the first steps to solve it. If you don't really know what you're looking for in the market, you'll end up taking the first trade you come across.

It’s not RIGHT or WRONG

You’re only right when you’re following your rules, and you’re only wrong when you take random setups.This is because random trading is not a stable long-term approach. Traders do try to predict price movements, but it's more of a result of following their rules and strategies. Traders don't expect the market to obey their drawings or predictions. Their main job is to make decisions based on their experience and testing, without being fixated on their expectations. Managing their trades along the way is also important. This is a complex topic, and we can discuss it further in another post. So, when someone asks whether to buy or sell, if they are asking for advice, it shows that they are at the beginning of their trading journey.

How to create a Checklist?

Take a moment and describe in the short form how does your entry look like. What are your rules for Structure, Zones of interest, what is your entry confirmation, and what is your risk and management? I like to actually checkmark every point before each of my trades, so I’m sure I’m following my plan. My Checklist:

1. Trend?

2. Range?

3. Supply and Demand?

4. Confirmation?

5. Management of the trade

6. risk 0.2-0.5% of the whole capital per trade

7. Breakeven when we go over 1:3

Bonus mindset

always go with a mindset that that trade will probably be a LOSS.

Why? Just trust me or go check my post on STOIC TRADING.

🎁Bonus for everyone still reading :)

If you have trouble with following rules or being disciplined, ask yourself this question: "If someone gave me a 100k account with all expenses paid, would I start following my rules and become more disciplined in trading the right way?" Try to be honest with yourself. It may seem strange, but many new traders believe that something needs to happen before they can truly stick to their plan. They might think, "I just need one more big win," or "If only I had more money to invest," or "Once I finish one more educational course, then I'll do things the right way."

So, if you answered yes to that question, it means you still have a beginner's mindset. You need to understand that any external change won't transform who you are. Instead, you must change yourself first by adjusting your behavior in the markets and your mindset. Only then will external factors fall into place.

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