6 Things to Check Before Entering a Trade

A good trade starts with a plan, not just a buy or sell signal. Before entering any trade, take a few minutes to check these six things. 1. Market Trend: Is the market moving up, moving down, or trading sideways? Trade in line with the price action. 2. Key Levels: Mark important support, resistance and breakout levels before entering. 3. Volume: Check whether enough trading activity supports the price move. 4. Risk: Decide your stop-loss and the maximum amount you are willing to lose. 5. Reward: Compare the possible profit with the potential loss. The setup should justify the risk. 6. Timing: Check upcoming results, economic data and major events that could move prices. These can help you avoid poorly planned trades. Always decide your entry, stop-loss and target before placing the trade.