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 yes-no2front

                                                                                                                                                                                                                                                                                                          Here are ten questions to ask yourself to see where you are along your own path in the trader’s journey.

  1. Are you willing to exit your trade if it gets to a predetermined price level that indicates you are wrong about it?

  2. Are you structuring trades through position sizing and stop losses so that if you are wrong you will lose no more than 1% to 2% of your total trading capital on any one trade?

  3. Are your entries and exits quantified?

  4. Are you consistently trading a specific method or methods that all your trades fit inside of?

  5. Do you have a written trading plan that gives you rules to follow while the market is open?

  6. Are your trades based off of specific price action?

  7. When you trade do you always do what you planned on doing before the market opened?

  8. Is your #1 priority in trading to make money?

  9. Have you done adequate historical back tests on your method or system in different market environments to ensure it is profitable?

  10. Are you willing to do the work necessary to make you a successful trader?

Give yourself ten points for every yes you have.

Results:

0-40 points: You have lots of work to do before you start actively trading, paper trading and homework is what I would focus on at this point to get up to at least 5-9 yeses before puttin real money at risk.

50-90 points: Trade small to learn from real experiences of losses and wins but finish your homework and get to all “yeses” before trading at your full trading size.

100 points: You are ready, only time and the right market conditions separate you from great success if you can maintain your discipline, perseverance, and keep your ego in check.