3 Questions to Ask Before Every Trade

Before you enter any trade, ask these three questions. Not after. Before.

1. What is the setup?
   Be specific. Not "it looks like it might go up." What is the actual pattern or condition you're trading? Can you name it? Can you describe the entry trigger?

1. Where is this trade wrong?
   This is your invalidation point — the price level at which the trade thesis has failed. Define it before you enter. This determines your stop loss placement and your risk amount.

1. Does this make sense in current structure?
   What is price doing on the higher timeframe? Are you trading with the prevailing structure or against it? Trading against structure isn't always wrong, but it requires more evidence.

If you can answer all three clearly, take the trade and follow your rules.
If you can't answer all three, don't take the trade.

Most mistakes happen when traders skip this process because a move looks obvious in the moment.

— Kemiworld Markets | Education