Forex Checklist 1,2,3

Written by on June 27, 2010 30 Comments
checklist

checklist

One thing I do that helps me to open good trades and avoid bad trades, is a Forex Checklist. This check list has a list of rules that must be in place before I enter a trade. I have found that by having a simple checklist in place it assists me in having the discipline to stick to my plan. The best part about having this list is that it is not complicated or difficult to remember. Actually the list is very easy and after using it a few times, a good habit begins to form. By using the forex check list I have developed my trading profits has gone up because this technique has increased my trading winning percentage.

I thought for the sake of this article I will share my actual checklist here with you as a guide that you can use for your own trading.

    • First I identify the trend and look for trades that fall within the direction of the trend.
    • Next I find the signal that I will enter the trade
    • Then I identify support and resistance points
    • Lastly, I determine the amount that I am going to risk on the trade

    After these steps are in place I then place the trade and log them in my forex trading journal. I think you will find that something as easy as a simple checklist can dramatically improve your trading. Trading doesn’t have to be complicated to be successful. I keep it as simple as possible so that I don’t outsmart myself.

    Please share in the comments below any type of checklists that you have developed that have helped you in your trading. That will help all of us become better traders as we share tips with each other.

    I want to remind everyone about our live market analysis tomorrow morning at 7:30 am. Click on the webinar tab.

    Also, I will be updating the Forex trading journal tomorrow in the first thing in the morning.

    Thanks and I am looking forward to your comments.

    Categories: Casey Stubbs Forex Education Tags:

    • KRISTOFA

      Thank you Casey.
      Your tutorials have been a great source of trading tool for me.
      I have not been following my own check list religiously.
      Also I am learning to be prudent in keeping my trading journal.
      Now Following the inspiration received from this posts, I will
      become a better trader. Thanks to your efforts.
      Kristofa

    • Yasir

      Hey i have read in books about the concept of “looking for the last significant high/low in the topic of TREND LINES” Can somebody please illustrate and email me what actually it is ? my email is yasir_community@yahoo.com

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    • http://thesilverfishbug.com Silverfish Insect

      You certainly deserve a round of applause for your post and more specifically, your blog in general. Very high quality material.

    • http://thetruthaboutabs1.com The Truth About Abs

      Hey… It looks like there’s a problem with the layout of the page. For some reason the text block is running into the edge. I don’t know if it’s just me or are others reporting the same thing? Just wanted to let you know in case you’ve been updating the site. Thanks!

    • http://subwater.blinkweb.com Vicki Garand

      Good article, Each and every Place is good Sufficient.Many thanks for sharing with us your wisdom.

    • http://nikehalftruth.blogspot.com/ SensoRiko

      I would like to exchange links with your site http://www.winnersedgetrading.com
      Is this possible?

    • Roberto Osorio

      Thank you Casey great tip

    • http://www.winnersedgetrading.com caseystubbs

      Helder thanks so much for your insightful comments. I hope that you stay around because i like your wisdom that you so willingly share with everyone.

      I agree with you completely about trading plans they must be your own.

    • Helder

      Hello Casey,

      Before I go on with my post I would like to say that what you do on this Website is extremelly helpful for everyone starting up, and it is a great place to exchange experiences and advices.

      One advice that I would like to give to any new comer, and I hope you can understand it as soon as possible, is that each one of us needs to create our own trading plan and rules. We can share them, but it is a mistake to gather rules from other people. Do your own research, understand that picking up other people's rules and ideas will not work for you.

      I was once caught up on blogs and other forex websites following third person's analysis and ideas only to find out later that I was unable to put them into practice because they were not mine. I was to scare to pull my sleeves up and get to work, study, do my own research, do my own analysis.

      Every speculator is different, every human psyche is different and unique, every personality is exclusive. Casey's rules and plan work for him because he came up with them, they match his personality and emotional boundries. He profits with them, but I might not profit with them, but rather with my rules. It's also a matter of confidence, believing in yourself, believing that you are capable of working on your own. Remember, you are responsible for every trade you make, so make your own mistakes. But of course not everyone is prepared and willing to go through that. In general we prefer to fall into the safety of the group, which is everything this profession is not.

      Ask yourself the following question:

      Would you agree to stop trading, even on your demo account, and spent the next 6-8 months studying, reading, researching, taking notes and questionnning every aspect of this profession (technical side, fundamental side and psychological side)?

      If your answer is “no”, then I am afraid speculating is not for you.

      Happy trading!

    • http://www.winnersedgetrading.com caseystubbs

      Thanks for that information if it wasnt for bank intervention that would be a great setup.

    • http://www.winnersedgetrading.com caseystubbs

      Charles you are right each time frame has a trend. I use the daily to find trends and then look to find my entries with the hourly charts.

      The way I determine a trend is with moving averages.

    • sifufx

      Disregard that trade,. bank intervention. .

    • sifufx

      Trade opportumity.

      Minii Swing

      USDCHF BUY ZONE 1.0874 to 1.0841 , use scaling in method , STOP 1.00325, Target 1.1015.

      Reasom , momentum and sentiment change in all of the market, have a nive 4hr csndle set-up. USD should continue to get stronger within the coming weeks months. Double bottom was broken earlier/

      Time to target 2 to 3 days.

      Sifufx

      Happy Trading.

    • Charles

      How exactly do you identify the trend? Which timeframe (TF) do you use? Based on my experience, each TF can have its own trend.

      Thanks,
      Charles

    • http://www.winnersedgetrading.com caseystubbs

      Maybe you could just post it in the comments section and everyone could benefit.

      Thanks

    • sifufx

      Mail Delivery Subsystem to me
      show details 9:32 PM (22 minutes ago)

      Delivery to the following recipient failed permanently:

      me..pihje@btinternet.com

      Technical details of permanent failure:
      Google tried to deliver your message, but it was rejected by the recipient domain. We recommend contacting the other email provider for further information about the cause of this error. The error that the other server returned was: 554 554 delivery error: dd This user doesn't have a btinternet.com account (me..pihje@btinternet.com) [0] – mta1026.bt.mail.ird.yahoo.com (state 18)

    • Pihje

      Hi Sifufx

      The same goes for me, can you share with me..pihje@btinternet.com

      thanks

      JC

    • Privateuno

      Hi Casey,
      Can you elaborate on finding your ''signal'' for entering a trade?

    • skysunleng

      Hi, Sifufx,

      Thank for sharing on PRIVOT POINTS. May i request from you, where can I have Daily, weekly and Monthly points indicators ? Do you mind sharing to me and send to my email leng276@yahoo.com

      If you willing to share out will be highly appreciated.

      Thank

      Sky leng

    • Sifufx

      Hi Casey,

      Hope it helps a little atleast.

      Here is a little something on how to use pivots.

      Pivot Points

      1. Pivots are very effective support and resistance points that provide high percentage signals when used in confluence. And a good candle reversal or breakout signal.
      2. Use daily, weekly and monthly pivot points and pivot s/r points. Important to analyse candle action around pivots in combination with other trend info such as price patterns and trend lines.
      3. Because these are crucial s/r points, price can often hover around a pivot for a long time before making a momentum move. We want to wait for a confirmation of momentum before entry.
      4. No matter what trade method is employed pivot points provide an effective point for stop loss or profit target.
      5. Using the weekly pivot is an ideal place to use the Stop and Reverse trade method. Especialy if its near the prrvious days high or low, which is an area of major importance for trading today.

    • http://www.winnersedgetrading.com caseystubbs

      Thanks Thomas,

      I like the dead hours rule and the correlations, those can be helpful. It is good that you are beginning to see what types of things you would want on your list.

    • http://www.winnersedgetrading.com caseystubbs

      Yes that is interesting, I will have to try that and see if I can add it to my own plan.

    • http://www.winnersedgetrading.com caseystubbs

      Thanks for the feedback, That is helpful to me and I hope others will take advantage of those good rules.

      I really appreciate it.

      Casey

    • sifufx

      sorry typo. 4 trades entered at .5%

    • Sifufx

      Trading Plan

      1. Money Management – Risk 0.5% per trade. 2% total risk, 4 *.5 tades can be entered.
      2. Enter and exit in 3 positions. Using the feathering method.
      3. Also if going to enter correlated trades then need to reduce position size accordingly.
      4. Have stop and profit target, plus general trade plan finalised before entry
      5. Detailed record keeping, including a snapshot of trade entry and exit
      6. Have multiple chart templates set up including 4hr MACD, pivots, and pure price action.
      7. Start analysis at longer time frame, then work way down to shorter time frame.
      8. Its key to determine the market emotion on all timeframes….ie longer term may be trending, but shorter term in consolidation. Correctly determining this market emotion is key to deciding which trade methods to implement.
      9. Looking for confluence. If everything does not line up then no trade. It is crucial to focus on high percentage setups and have the patience to wait for these setups. We are paid to wait, not trade.
      10. Use US Dollar index to add weight of evidence in determining market direction.

    • Thomas Shawn

      I haven't created my list yet but among the contents are:
      1. Watch out for economic reports.
      2. Do not trade during dead hours like 11:30 am EST – 1 pm EST.
      3. I always look at pairs like EUR/USD & GBP/USD at the same time. Make sure I'm shorting the weaker one/buying the stronger one if both are flashing signals at me.

    • http://www.winnersedgetrading.com caseystubbs

      Great point , always check for news events.

      Thanks for the comment

    • http://twitter.com/khangi61 Nisar Ali

      1) I look for the candle pattern at support/resistance.
      2) then i look for adx slope for that particular candle, if its less than .25 or negative that shows that trend is wanning. to find adx slope i deduct previous candle's adx from current candles adx. its an awfully succesful.
      3) to exit i look for simply reversal patterns.
      4) and the amount i want to risk.
      i hope this trick might help some one.

    • Jaap

      Hi Casey,
      I wrote my rules – wich are the same as you mentioned plus keeping an eye on news events – on a list also a while ago. Indeed it increased my profits. I try to never trade without checking my rules first. Thanks for sharing this good advice.
      Best regards,
      Jaap.