Most trading mistakes happen because traders don’t pause and think.
Asking the right questions before entering a trade can protect your capital and improve your results.
Here are 5 questions every trader should ask.
1️⃣ What Is the Trend?
Is the market:
• bullish
• bearish
• sideways
Trading with the trend usually increases your probability of success.
2️⃣ Where Is My Entry?
Are you entering at:
• support
• resistance
• breakout
• pullback
Random entries often lead to losses.
3️⃣ Where Is My Stop Loss?
If the trade goes wrong:
• where will you exit?
If you don’t know your stop loss, you are risking too much.
4️⃣ Is the Risk Worth the Reward?
Ask yourself:
• how much can I lose?
• how much can I gain?
A good trade should offer more reward than risk.
5️⃣ Am I Trading Emotionally?
Are you entering because of:
• FOMO
• fear
• frustration
If yes, it’s better to wait.
Final Thought
Taking a few seconds to ask these questions
can prevent many bad trades.
In trading, better decisions often come from
slowing down, not speeding up.