5 Questions to Ask before you take your next Trade

This is a reference guide with five questions you need to ask, the next time a trade lines up and you need to take a trade.

Ask and answer these questions out loudly to help you execute your trade easily the next time.

Question 1:
Do I have a strategy or plan?

First, you need make sure you have a proven and profitable strategy.

Or else how else will you take a trade?

Whether you’re following:

• Your own proven trading strategy
• My 20 year highly successful MATI Trader System
• The 9 year popular Red Hot Storm Trader service

You first need to establish you have a strategy and system to follow each time.

Once you have one of the above, move onto the next question.

Question 2:
Has a trade lined up?

Next, you’ll need to know if a trade has lined up according to a proven and tested trading strategy.

Whether your trading system is a swing, indicator, mean reversion, Gartley, moving average, volume or a price action system like the MATI Trader System.

you'll need to have the green light to know when a trade has lined up and whether it’s ready for the go.

Question 3:
Do I know where to place my trading levels?

Once a trade has lined up, you'll need to know or calculate exactly where to enter, place your entry, stop loss (for risk) and take profit (for reward) levels.

These three levels are essential for entering your trade.

This way you'll have a systematic approach with every trading position you take.

Question 4:
Do I know how much to put into my trade?

Next is position sizing.

Trading is one big risk to reward game.

You'll need to choose an exact percentage of your portfolio that you're willing to risk to gain with each trade.

With high probability trades, I never risk more than 2% of my portfolio.

With medium probability trades, I drop that risk to 1.5% of my portfolio per trade.

At this point, you also need to know how many CFDs you’ll need to buy/sell to make sure your risk is low.

Question 5:
Am I ready to press the button?

Finally, you'll need to do final checks.

This is where you’ll confirm with the strategy, check all your trading price levels and position sizes to confirm the that you’re ready to push the button to get you into your trade.

Once all is ready, you just need to do just one more thing.

Push that BUY or SELL button.

Those are the only questions you'll ever need to enter a trade. Unless I'm wrong, let me know what other question is missing from the list.

Trade well, live free.
Timon
MATI Trader