Pre-trade Checklist

[Mr.King 1]

Does anyone here fill out a checklist before entering a trade? If so, which parameters need to meet your standards and does it work for you? 

Thanks,

Patrick 

[Kasper 13]

There must be a good risk to reward for me to enter a trade  (R2.1), I'll pass on the trade if it's under R2.1.

Also, the stop loss has to be realistic. For example, I would never risk 20-30c on a stock like AMD because of its limited movement.

Checklist

- R2.1

- Stop loss  (depends on the stock. You can use the ATR to figure out the movement)

- Decent target (High/Low or moving averages)  

 

Good risk to reward, Realistic stop and a decent target.

Kasper