Read the complete plan first
Do not place the trade after reading only Buy or Sell. Confirm the market, entry, stop loss and take profit together. These levels describe one complete setup.
| Item | Simple explanation |
|---|---|
| Buy | The setup expects price to rise from the planned entry. |
| Sell | The setup expects price to fall from the planned entry. |
| Entry | The level used to plan the trade; it is not permission to enter at any later price. |
| Stop loss | The planned invalidation level and the basis for position sizing. |
| Take profit | The planned exit if price reaches the objective. |
Checks before entry
- Is the symbol correct?
- Is price still near the planned entry?
- Is the stop-loss distance acceptable for the account?
- Are spread and market conditions normal?
- Is high-impact news close?
- Does the trade fit your personal daily and per-trade risk limit?
After entry
Record the actual entry, position size and broker spread. Follow the risk plan used when the trade was opened. Do not move the stop farther away simply to avoid a loss.
If your execution differs from the published entry, the published performance result may not match your account result.
When to skip a setup
- Price has already moved far beyond the entry.
- The required position size or stop distance is unclear.
- The market is closed, illiquid or showing abnormal spread.
- The trade would break your maximum daily risk.
- You do not understand the setup or cannot monitor it according to your plan.