Perception vs reality

[prabsn]

Hi all, I've been a silent reader on here for many year, finally decided to post. Im current in a large loss making trade as a result of breaking a number of my trading rules. So I want to complete a checklist which would help me perform a pre-trade vs post trade perception analysis and work on areas of distortions. I can already clearly see that the problem is with my perception, and would like to do something about it. I've come up with the below and would appreciate any further input:
-Chart shows uptrend/downtrend/rangebound?
- justification for trade entry
- any conditions to be met for entry?
- were conditions met? (Im guilty of jumping in without waiting for confirmation)
- calculate 1% of capital
- Calculate risk (£, points) - im guilty of underestimating this
- Calculate reward (£, points) - guilty of overestimating this
- is ATR > risk?
- Check if volume aligns with direction of trade
Thanks for responding

 

[darktone]

Hi all, I've been a silent reader on here for many year, finally decided to post. Im current in a large loss making trade as a result of breaking a number of my trading rules. So I want to complete a checklist which would help me perform a pre-trade vs post trade perception analysis and work on areas of distortions. I can already clearly see that the problem is with my perception, and would like to do something about it. I've come up with the below and would appreciate any further input:
-Chart shows uptrend/downtrend/rangebound?
there is only uptrend and downtrend, range bound is one repeatedly changing to the other for a period of time.
- justification for trade entry
that your trading in line with the big picture and a nice price
- any conditions to be met for entry?
as above
- were conditions met? (Im guilty of jumping in without waiting for confirmation)
good, keep it that way, confirmation costs
- calculate 1% of capital
for what? think of the smallest size youd want to trade for acc, then halve it, at least
- Calculate risk (£, points) - im guilty of underestimating this
you seem unsure of what risk is
- Calculate reward (£, points) - guilty of overestimating this
why estimate what you cant know
- is ATR > risk?
your risk is your size x anything can happen
- Check if volume aligns with direction of trade
Id rather think about what im gona have for lunch
Thanks for responding

your welcome