For trading successfully you need to make a strong plan. In the trading checklist page, you can make a good trading plan easily. Here you are given a checklist to do things that are needed to complete successful trading.
On our website the trading checklist is personal. It means that one checklist that is effective for your trades will not be effective for others. You have to keep this in mind and use the trading checklist wisely. Since each trader selects their own trading, strategy one checklist will simply not be functional with other traders. In any case, you can be sure that this tool will help you trade on our website.
Why personal trading checklist is necessary?
As you know trading is a type of investment, and like all investments it carries risks. Particularly, two types of noises affect the traders and increase risks. One is internal, and the other is external. Internal noise is the trader’s emotional blockage, the fear of loss and anxiousness. External noise is what the traders are talking about or news, market states for trading, etc.
It helps you to be confident
When your personal checklist is ready, you will feel confident about the deal. At first, you need to analyze the market, start trading when you think you are ready. Since you have to create your own checklist, you know that each step on the list is effective. As a result, you are more confident about making the trade.
Focus more on trading strategy
If you talk to experienced traders, they will tell you that trading strategy is vital for the process. When you are making a trading checklist following a strategy, it guides you and makes sure you are on track. Hence, it makes sure your trading is successful.
There are times when you will be tested as a trader. Particularly, when you are going for a trade that is against the market. But, if you make a trading checklist, it ensures that you are not misguided by the market, and you follow your own trading path.
Binance Wiki Personal trade checklist:
How to make a good trading checklist?
Before you start making the trading checklist, you need to understand the market status. Here you have to define the market and chose whether you go with it or against it. If you are a beginner, then it is best to go with the market. It raises the chance of getting a profit. Additionally, there is no opening price going with the market.
In your trade list, you can write ‘Trade and trend are in the same direction’.
The trade list also helps you keep track of your investments. So, you can keep your eyes on the investment. It helps track your money and keep you focused on the outcome of the trading. You will also be able to see if the starting amount for trading is accurate before you start trading.
For this, you can make a statement like ‘The amount is correct for trading’.
If you want your tradings to be successful you need to stay up to date with all the news and announcements of the market. For this, you need a trusted source that will give you all the valid, authentic information. As you get all the updates, you might need to take a decision according to the changes in the market condition. Hence, staying up to date with the news is vital to make sure you get the profit.
Sometimes in trading, there is a situation that needs to be dodged by the trader. You can put up a point if your trading checklist to stay updated with the relevant news.
Your physical and mental condition
In order to do trading, you need to be mentally and physically fit and ready to face what comes up ahead. If you are not healthy in both states then you might end up making the wrong decisions and make a loss. Such conditions usually bring heavy aftermath which you need to pay off. You can write something like ‘ Am I in the good mental and physical health’ in your checklist.
The ratio of risk and reward
You have to understand the ratio of risk and reward in order to gain profit from trading. It is a measurement of how much you will gain for a risk. For example, if the ratio is 1:6, it means for each dollar you risk you will get a reward of 6 dollars.
Once you have established the ratio, you can decide whether you want to prepare a stop-loss order or not. A stop-loss order is what saves you from heavy loss. When the market falls below a certain price, the trade is automatically closed off by stop-loss orders. Hence, it saves you from a severe loss while trading.
In such cases, you can write down in your trade list ‘trade risk ratio is in favor’.
For some traders making the first trading, the checklist might seem difficult. But if you keep making one it will help you a lot while trading. Over time you will learn how to make a proper trade list. You will also understand how much it helps you to be successful in trading. Remember that the checklist is different for each individual. You can find out more information about this here.