Pre-Trade Checklist: 12 Steps to Avoid Costly Mistakes

Setup is clear (why this trade?)

Entry is defined (price or trigger)

Invalidation is defined (stop level)

Risk per trade is fixed (e.g., 1%)

Position size calculated (not guessed)

Costs estimated (fees, slippage, spread)

Risk/Reward acceptable

Exit plan exists (TP, trailing, partials)

Total open risk is within limits

Correlation risk checked

If stopped, you accept the loss emotionally

Journal note: why this trade fits your rules

Pre-Trade Checklist (12 Steps)