📌 10 questions to ask before entering a trade

➡️ Is the upside worth the risk?
Momentum matters, but so does downside protection. The goal is the best risk-reward possible.

➡️ What is the win condition?
Every trade needs a clear trigger for success. Without it, it’s just gambling.

➡️ Is there a better trade for the same thesis?
Sometimes another asset offers cleaner risk-reward to express the same view.

➡️ How strong is the conviction?
Conviction ties directly to position size. High conviction deserves size, low conviction doesn’t.

➡️ Is the trade overcrowded?
If it’s all over the timeline, it’s likely late. Late trades can work, but upside is capped.

➡️ Where is the invalidation?
Invalidation should reflect a broken thesis, not arbitrary stops. Cut when the idea fails.

➡️ How does it fit into portfolio exposure?
Avoid stacking the same type of risk across multiple positions.

➡️ Does price action support the thesis?
No matter how bullish the story, if price lags, the thesis is weak. Price action is king.

➡️ Does the trend favor the setup?
Trading against trend is hard mode with higher risk and lower reward.

➡️ What if it goes wrong?
A plan for the downside avoids irrational decisions in the moment.

The best trades are clear before entry.
If too many answers are missing, the trade isn’t worth it.

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