Is trading checklist is very important?

[shinratensei_]

definitely, from your list all the point are spot on, I think any experienced trader always do exactly what mentioned, analyzing the market first and checking all those list before making decision.
you just never stop doing all those thing in every market movement to find out some opportunity even more so at such shaky market like right now.

determining risk to reward ratio is also one thing that prevent most of people from losing too much and make reckless trade, the people that ignored this list usually are newbie that just open position without any knowledge backing it up or in other word, they don't know what they should do in the first place.

in my book, the list that get mentioned in your post, is called technical analysis.

[Jody.Drummer]

definitely, from your list all the point are spot on, I think any experienced trader always do exactly what mentioned, analyzing the market first and checking all those list before making decision.
you just never stop doing all those thing in every market movement to find out some opportunity even more so at such shaky market like right now.

determining risk to reward ratio is also one thing that prevent most of people from losing too much and make reckless trade, the people that ignored this list usually are newbie that just open position without any knowledge backing it up or in other word, they don't know what they should do in the first place.

in my book, the list that get mentioned in your post, is called technical analysis.

Indeed, the points mentioned by the op are important points that we must do before we enter the market and make an entry. We cannot miss these points, that's why we always say that we must analyze thoroughly before actually entering the market. If we miss just one thing, it might result in a big loss for us. This is one way for us to make our chances greater to take advantage, not only doing technical analysis but fundamental analysis is also very much needed. Even if we talk further, then we must see our mental readiness before trading. Because usually there are times when we are not fully ready, that is the wrong time to trade, because it will affect us, either being afraid or being greedy.

[ethereumhunter]

I totally agree. Check like that is a great idea and it's better yet to fill it with more ideas/points that would help the trader in the future. And continue to trade responsibly, that's the main thing that will help anyone, really.
No rush, only facts in front of you, no emotion to push you into something. It's hard, but it's possible.
Experience comes only with time and trial and error.

We will get experience when we try something new so that will improve our knowledge so we can do better than before. While we use the checklist, we can see what we miss and need to do but if we feels that we don't know or don't have much skills about that, we can learn more and try as we can. That will help us to gain more experience so that will help our trading and we can be more practiced using many things that we learned. Having checklist will help us to work as it written in the checklist so we will usually do the thing as it sequentially and once we can do that, we will not feels that is difficult.

[SamReomo]

If we think we will become successful traders, then we must open wide to learn more insights that could enhance our capabilities.

It's the first time I'm seeing that trading checklist but as a trader I have been following most rules of that checklist for years, and I believe it's essential to follow those rules. I often trade the coins that can most probably give me profits but before opening any trade position I do my best in research about the coin and the chance of success it can get.

A trader should always have his/her trading plans, strategies, market research, trading checklist, and most especially the control over ones emotions in order to get success in trading. These days anyone can be a trader by creating an account on a online exchange, but most of those are newbies who will end their trading journey in days or weeks.

A good trader has to learn the market and follow the above rules to get success in trading. Only those traders who survive in different conditions of the market will make profit in long run, and others will follow such traders.

[hd49728]

before opening any trade position I do my best in research about the coin and the chance of success it can get.

Before opening your trading position, you need to consider chance of success (profit) and probability of failure (loss) and if you see that it's more likely to get profit than loss, you can open a trade. Make sure you know what is your exit prices for profit and cut-loss.

Always use Stop loss order or Stop limit order for your trading positions.

Stop-Loss order, one of best weapons in trading.
Stop-Limit order, another weapon in trading.

[adzino]

It looks like a checklist someone made for themself. It does look some what good and yeah, its not a bad idea to have such list. It helps you stay focused on goals and not make impulsive decisions when trading. It has some important notes to keep in mind, but the priority in the list can be different for each person. For example, for some person, the risk to reward ratio might be the most important thing when taking any decisions, so they would put that at the top of their list. Others might care more about economic news or technical indicators. So they can keep that on the top of the checklist. Lists like this helps people to make sure they are following their plans well. It also helps then to control their losses and manage their finances well. But at the end of the day, it is skill and experience that is the most important thing in a trading.

[crwth]

Why is it now I just have seen this? This is really an interesting topic to talk about because this would lead towards better understanding of and results that could be reached with adding this with your arsenal or ritual.

It could lead to better performance because you will make sure that you reach the right conditions in your trading rules for yourself. That's why I really love Gunbot because it makes it easier for me to trade and not have to check it continuously.

[SamReomo]

Before opening your trading position, you need to consider chance of success (profit) and probability of failure (loss) and if you see that it's more likely to get profit than loss, you can open a trade. Make sure you know what is your exit prices for profit and cut-loss.

Always use Stop loss order or Stop limit order for your trading positions.

Well, I don't use stop losses that much but surely I use take profit for each position. I always open my trading positions carefully and that's why in very conditions I use stop losses, when I'm not fully sure about the condition of the market or when I think that market can swing back.

Stop losses are necessary in case when you're taking risk in your positions or you're a type of trader who doesn't want to hold a position for long time or someone who open short positions. For someone like me it's not that much necessary because I'm a patient trader and I do averaging to fix my positions.

[Peanutswar]

Those are the common trading checklist actually as a trader you must need to have your plan like verification of the trade if its ideal to make a position or not of course you have a post-trading plan and pre-trading plan. Once you make a position already you can check this the trend and there's any change of character happens or not. Also if the trade close already to check if the position is ideal for another trend but of course doesn't mean you need to make a fast position just to carried out still need to check.

[bitgolden]

Obviously, otherwise it wouldn't be a trading checklist and we wouldn't need it. If you want to trade, then you need to have a checklist where everything hits perfectly and we could make some good profit from it without much trouble.

I believe that the situation we are in right now would be getting a lot worse if we just traded without caring about anything, that would result with a bad trade where you lose money and because of that I think it's clear that we are going to see some bad results and not make any money at all. I know that it's hard for some people because they can't wait to get rich, some even invest into things that promises riches in a week or month but that's definitely scam and you should stay away from it but making those people wait for a month to just find one trade that may give you 3% return isn't easy. And yet that is what you should be doing so it is not that easy to convince these people to do the right way of trading.

[mirakal]

If we think we will become successful traders, then we must open wide to learn more insights that could enhance our capabilities.

It's the first time I'm seeing that trading checklist but as a trader I have been following most rules of that checklist for years, and I believe it's essential to follow those rules. I often trade the coins that can most probably give me profits but before opening any trade position I do my best in research about the coin and the chance of success it can get.

A trader should always have his/her trading plans, strategies, market research, trading checklist, and most especially the control over ones emotions in order to get success in trading. These days anyone can be a trader by creating an account on a online exchange, but most of those are newbies who will end their trading journey in days or weeks.

A good trader has to learn the market and follow the above rules to get success in trading. Only those traders who survive in different conditions of the market will make profit in long run, and others will follow such traders.

Trading definitely requires testing strategies to find out what works in the market. We all wish there was a strategy that fits every situation, but sadly, that just isn’t the case. Successful traders thrive on consistency. But I agree, we can’t just rely on checklists; we also need to keep enhancing our knowledge and skills because that’s what really helps us to reach our goal.

It’s tough to admit, but it’s not easy at all. Low effort never leads to success—it takes extra work. That’s why so many people either struggle or give up; they can’t handle the pressure of analyzing the market. With the market’s volatile nature, having the perfect timing for buy/sell calls is a real challenge!

[OcTradism]

Trading definitely requires testing strategies to find out what works in the market. We all wish there was a strategy that fits every situation, but sadly, that just isn’t the case. Successful traders thrive on consistency. But I agree, we can’t just rely on checklists; we also need to keep enhancing our knowledge and skills because that’s what really helps us to reach our goal.

Trading is hard and it's not easy for all traders especially new traders.

They can try with own money, and it means actual trading capital, actual loss or profit. Most of time new traders will have losses and to avoid it, they can try with demo trading, backward test scripts on Trading View. Results from demo, tests can be good but actual trades are different than tests because with real money, you will feel more emotionally with greed, fear, panic, and make worse decisions than with demo or script test.

It’s tough to admit, but it’s not easy at all. Low effort never leads to success—it takes extra work. That’s why so many people either struggle or give up; they can’t handle the pressure of analyzing the market. With the market’s volatile nature, having the perfect timing for buy/sell calls is a real challenge!

Never easy. Trading is harder than investment and if anyone feel bad with trading, get enough losses from trading, it's time to start investment and better only focus on investment and forget about trading.

[TheUltraElite]

A checklist might help cover some common pitfalls but it all comes back down to your practice of trading.

If you are panic stricken butterfinger, you will lose money in trading no matter how many checklists you keep or tick off. If you are the nonchalant thug life trader, you have a better chance of surviving. But that is a topic for another day.

Use a checklist in the beginning of your trading career, start to give it up eventually.