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Pre-Trade Checklist

STOP - Read Before Every Trade

Go through this checklist before entering ANY trade. No exceptions.

The Questions

Ask Yourself These Questions

  1. Do I have a consistent strategy & do I understand it?

  2. Is this a valid setup? What is the basis?

  3. Does taking this setup make sense?

  4. What is the ideal scenario? (Draw lines/zones)

  5. If it moves opposite, will I cut it quick?

  6. Is it worth opening risk now? Is the environment conducive?

Technical Checklist

Trend Confirmation

  • Stock above 200 Day MA (minimum)
  • 9 Day MA above other MAs (nice to have)
  • Higher highs pattern for longs

Entry Setup Valid

  • Lux Algo signal aligned
  • EMA alignment confirmed
  • PVT confirmation
  • No divergence on oscillator
  • Volume confirmation

Risk Defined

  • Stop loss level identified
  • Risk is within 1.5-3.5%
  • Position size calculated
  • R:R ratio acceptable (minimum 1:2)

Context Check

  • Sector performing well
  • No major news/events that could gap
  • Market environment favorable
  • Not too close to earnings

Red Flags - DO NOT TRADE

Stop If Any Apply

  • No clear technical setup
  • Trading on news/hype only
  • No defined stop loss
  • Revenge trading after a loss
  • Position too large for comfort
  • Trading too close to earnings
  • Chasing a gap > 4% without base

Position Entry

  • Entry price marked
  • Stop loss set (or level noted)
  • Profit targets identified
  • Position size appropriate
  • Alerts set if needed

Final Confirmation

Ready to Trade?

Before clicking buy/sell:

"I have a valid setup, defined risk, and a plan for both winning and losing scenarios."

Remember: "It is very difficult to make back money... comes at a lot of cost and effort. Defend your capital."