1. What is a Checklist

A checklist is the set of conditions that must be met before entering a trade — a filter that forces you through each step instead of clicking by emotion. The idea is borrowed from aviation and medicine: fields where even experts use checklists to avoid missing critical steps under pressure.

2. Why it matters

  • A checklist slows the emotional reflex (FOMO, revenge) enough for reason to join in.
  • It turns the plan (see Trading Plan) into concrete action, checkable on every trade.

3. What a checklist contains (example)

  • ☐ Does the trade fit the plan's criteria?
  • ☐ Have I defined the stop loss?
  • ☐ Is size computed from stop distance and risk %?
  • ☐ Does RR meet the minimum?
  • ☐ Am I in an emotional state (FOMO/bitter/euphoric)?
  • ☐ Have I broken a stop rule (already hit the loss limit)?

4. How to apply

1. Derive the checklist from your own plan — each item a required condition. 2. Go through the checklist before every trade, no exceptions. 3. If any item fails → don't enter. 4. Keep it short (5-8 items) so you actually use it.

5. Worked example

You see a sharp rally, your hand wants to buy now. But the checklist asks "is this in my plan?" → no. "Do I have a stop yet?" → no. Two questions, and you realize this is a FOMO trade and skip it — the checklist just saved you a bad trade.

6. Common mistakes

  • Not using a checklist because it feels "annoying".
  • Too long a checklist so it's abandoned midway.
  • Ticking for show without actually checking.
  • Dropping the checklist when the market is hot — exactly when it's needed most.

7. FAQ

  • Do experienced traders need a checklist? Yes — like veteran pilots still use checklists. Experience doesn't immunize against emotion.
  • Does a checklist make me miss fast moves? A few seconds of checking is worth more than a bad trade entered in haste.

8. Tools

  • A printed / pinned checklist card; a digital checklist to tick before placing an order.

9. Checklist (about using a checklist)

  • ☐ Do I have a checklist derived from my plan?
  • ☐ Do I actually go through it before every trade?
  • ☐ Is it short enough that I use it consistently?