A Trading Psychology Checklist Before Entry
A decision checklist for separating thesis, risk, and impulse before a stock, option, crypto, FX, or event-market trade.
Name the Trade You Are Actually Taking
Many bad entries start as vague conviction. The first check is simple: name the asset, direction, timeframe, catalyst, invalidation, and why this entry is better than waiting.
If that sentence cannot be written cleanly, the trade is probably still a feeling rather than a plan.
Separate Risk From Hope
A risk plan says what happens if the trade is wrong. Hope says what could happen if the market finally agrees.
Before entering, define max loss, position size, stop behavior, and the specific condition that would make the thesis invalid.
Check the Pattern, Not Just the Setup
A technically valid setup can still be the wrong trade if it repeats a known failure mode: chasing, oversizing, revenge trading, hesitation, or holding through stops.
The best pre-trade question is often behavioral: does this trade fit the plan, or does it fit the pattern you are trying to stop?