1. What should you look for before entering a trade?
Think of it like a pilot’s pre-flight checklist. If one thing is missing, you don’t take off ✈️
Here’s the 5 things pros check every time:
1. The Setup: Do you have a real reason?
Don’t trade on vibes. You need confluence 2-3 things lining up.
Examples:
- Technical: Price at support/resistance, breakout, trendline touch, MA cross
- Fundamental: News, earnings, Fed announcement
- Rule: If you can’t explain "why" in 1 sentence, skip it
2. Market Context & Trend
- Higher timeframe: Is 4H/1D trending up, down, or sideways? Trade with that trend
- Volatility : Is the market too wild? Big news in 15min? Wait.
- Liquidity : Can you get in and out easily without big slippage?
3. Risk to Reward
Decide this BEFORE you enter:
- Stop Loss : Where are you wrong? This is your "uncle point"
- Take Profit : Where are you right?
- R:R Ratio : Aim for minimum 1:2. Risk ₦1,000 to make ₦2,000. If R:R is 1:0.5, don’t take it
4. Risk Management
- Position Size : Only risk 1-2% of your account per trade
Ex: ₦200,000 account = max ₦2,000 - ₦4,000 risk
- Max trades per day: Prevents overtrading
- No all-in: Never risk money you can’t afford to lose
5. Your Mindset
- Revenge trading? After a loss? → Don’t trade
- FOMO? Chasing a pump? → Don’t trade
- Tired/stressed? → Don’t trade