Practical Mantra - Questions a traders asks before placing a trade

[AndrewFutures]

Please keep this based on practical methodology or questions that create stimulus so mistakes from the past are not present in the now.
I will start this thread with a questions that I ask myself every time before placing a trade.

Since probability is subjective, and can only be defined with statistics or a large sample size. I base everything on RISK, so as buffet would say "risk=not knowing what you are doing."


1st question) Where and What is my Reward to Risk levels on this trade?

If i can not define this question, I will not place a trade.

The reason I really enjoy this question. I try to trade as mechanical as possible. However, there are times where we might test a swing low, aka fractal, and even though I want to do a sell stop order, and anticipate a breakout.

By putting a by limit order I can receive > 2:1 Rr on this trade. So either wait for my short or go long, based on current market conditions, a channel...

 

[AndrewFutures]

if going long

Why are you buying at this price and time?
Should you be selling here?

 

[AndrewFutures]

if going short

Why are you selling at this price and time?
Should you be going long

 

[AndrewFutures]

If market moves in my direction and trade fills long or short

Should I move my stop lose to break even?
Should I scalp out of this trade?
Are we in a channnel with LH and HL?
Are we in a trend with HH or LL?

 

[AndrewFutures]

Quiet Star Gazing

I feel to many traders I speak with are just staring at this 2D world.
You need to talk to yourself, trust me you are not crazy, you are profitable!
As a homo-sapien taking part in spaceship earth...
I feel we have evolved from
Action ----> Reaction

to a

Stimulus ---> Respond

creature...

So questions activate your brain to problem solve this chaos imo.
They also create dualism, for a very simple basic primitive decision, buy or sell?

 

[everyonerich]

if market go against your position, what you do?