Day trading checklist to start your trading business

Every day trader will write a day trading checklist. They think it can help them follow the day trading discipline.

Here is my day trading checklist. I must write it before every trade.

• Date
• Which market will I trade? Stocks, options, futures or forex? It is better to trade in only one market. I am going to day trade the forex market.
• What is my day trading strategy? 
• Forex grid trading system or RSI day trading strategy.
• Check the Economic calendar on the forex trading sites.
• Closing price on the daily chart
• Daily high and low
• Support levels on the daily chart
• Resistance levels on the daily chart
• Are ADX 14 readings above 25?
• Has it crossed 20 exponential moving averages, 50 EMA, 100 EMA and 200 EMA?
• Are ADX 14 readings below 20?
• Are Relative Strength Index 14 readings below 30?
• Are Relative Strength Index 14 readings above 70?

How do you arrange your pre trading checklist?

Some day traders probably write it down on the day trading diary. Others may write it on the day trading blogs.

I will build a day trading checklist excel spreadsheet. It will be saved along with the day trading journal excel.

Finally, you shouldn't only look for the strong day trading signals on the daily chart, you have to also check the 4 hour chart.

Here is a day trading checklist example:

a day trading checklist

A lot of day traders were caught out by a strong trend on the daily chart. Therefore, it is not enough to write a day trading plan and a day trading journal, one must make a pre trading checklist.

Daily trading checklist before every trade

Many professional day traders build a daily trading checklist before every trade. It differs from day trading plans or day trading business plans. 

The aim of a daily trading checklist is to find day trading opportunities and avoid day trading mistakes.

Some day traders probably write it down on the day trading diary. Others may write it on the day trading blogs.

I will build a day trading checklist excel spreadsheet. It will be saved along with the day trading journal excel.

A daily trading checklist should include:

• Date
• Which market will I trade? Stocks, options, futures or forex? It is better to trade in only one market. I am going to day trade the forex market.
• Closing price on the daily chart
• Daily high and low
• Support levels on the daily chart
• Resistance levels on the daily chart
• Are ADX 14 readings above 25?
• Has it crossed 20 exponential moving averages, 50 EMA, 100 EMA and 200 EMA?
• Are ADX 14 readings below 20?
• Are Relative Strength Index 14 readings below 30?
• Are Relative Strength Index 14 readings above 70?

If you are interested in further details, I strongly recommend Kathy Lien's currency pair checklist.

Here is a daily trading checklist example. I often write it every day.  

A daily trading checklist

Pre trading checklist

I found a lot of forex traders only write a currency trading plan and keep a currency trading diary. They never made a pre trading checklist! 


In fact, a pre trading checklist can find the forex trading opportunities and avoid forex trading mistakes. Today I will guide you toward a better mastery of it

If you are a forex trader, you should write a forex trading checklist. It may include:

• Currency pair
• Date
• Opening price
• Support levels on the daily chart
• Resistance levels on the daily chart
• Are ADX readings above 25?
• Has it crossed 20 exponential moving averages, 50 EMA, 100 EMA and 200 EMA?
• Are ADX readings below 20?
• Are Relative Strength Index readings below 30?
• Are Relative Strength Index readings above 70?

I think the aim of a pre trading checklist is to determine the main trend on the daily chart. Therefore, I use the moving averages indicator and average directional index.

If you are interested in further details, I strongly recommend Kathy Lien's currency pair checklist.

A Pre trading checklist is presented below. I will update it every day.

• December 17, 2017
• AUDUSD
• 0.76405
• support levels: 0.7627, 0.7597, 0.7549
• resistance lines: 0.7693, 0.7741
• ADX readings are 27
• It has crossed above 20 EMA, but it is still hovering below 50, 100 and 200 EMA
• Relative Strength Index readings are 53.76
• I will buy 1 micro lot of AUD/USD at 0.7637

Here is my pre trading checklist, you can modify it according to your trading style.

In the next couple of articles, I will you the day trading checklist and the stock trading checklist.

More reading: Ripple....rips higher. Do the technical tools help define risk?

Forex trading plan checklist

Today I would like to show you the forex trading plan checklist.

Now, I want you to know every professional traders have 3 essential forex trading tools

• a forex trading plan
• a forex trading plan checklist
• a forex trading journal

I think you must have known how to write a forex trading plan and develop a forex trading diary. So I will explain the forex trading checklist in more detail. 

The following is my everyday work

First, I will use a trend line to identify the main trend on the daily and 4 hour chart. 

Second, I am going to keep up with the price action.

• I will wait for price down to the trend line.
• If price closes below trend line support, I will stop forex trading.

Third, I will draw support and resistance levels on the daily and 4 hour chart. Of course, I will never forget the weekly chart.

Fourth, I will check the Relative Strength Index every day.

Fifth, I am going to check the Average directional Indicator every day.

Sixth, Sometimes the markets move so much after the a major news release. So, I will focus on the Dailyfx Economic Calendar.

At last, once I have identified a trending market, I will use the one direction grid trading system on the daily chart. However, if a trend is not present, I will stop forex trading.

Here is a Forex trading checklist template:

GBPUSD daily chart

First, I will decide to trade the major pairs like GBPUSD

Second, before trading, I will check the Dailyfx Economic Calendar.

Third, on the daily chart of the GBPUSD, it stays above a bullish support trend line.

• The Average direction Index is 25.4. It indicate a weak trend.
• The Relative Strength Index is 49.72

GBPUSD 4 hour chart

Fourth, on the 4 hour chart of the GBPUSD, the price had broken through the trend line and cause a reversal

• The Average direction Index is 33.93
• The Relative Strength Index is 36.57

Now I will think for a minute. Is this the right trade at this time? 

No, I won't make the trade here. The picture isn't clear.

I think the great advantage of the forex trading checklist is that you can find the forex trading opportunities.


Now I have explained the forex trading plan checklist to you. 

If you want to know more, please read my other forex trading articles.

More reading: Trading with Multiple Chart Indicators

Checklist before trading forex

Novice traders have created a trading plan and kept a Forex trading journal. But it is not enough to create a trading plan if you want to make a lot of money. You have to develop a checklist before trading Forex.

Here is a Forex trading checklist for you

First, I often use the multiple time frame analysis techniques. Therefore, I have to identify the general trend on the weekly chart.

• I will draw a trend line to determine the direction of the trend.
• I will use the 20, 50 & 100 moving averages to identify the trend
• Sometimes I will refer to the Bollinger bands
• Of course, you can trade with the moving average convergence divergence
• Use the Average Direction Index trend strength Indicator
• Identify the Japanese candlestick patterns
• Use the Fibonacci retracement tool
• I will also add a support and resistance line.

Second, I have to detect the dominant trend on the Daily chart.

• Add a trend line
• Draw support and resistance lines
• Sometimes I will refer to the Bollinger bands
• RSI can be used to identify the overbought and oversold levels 
• Trade with the 20, 50 & 100 moving averages
• Use the Fibonacci retracement tool

At last, once I have identified a trending market, I will use the one direction grid trading system on the daily chart. However, if a trend is not present, I will buy near support or sell near resistance.

How to perform a checklist before trading Forex

After demo trading, I think I like trading the AUDUSD pair the most.

First, I have to identify the dominant trend on the weekly chart.

• Identify a reversal with a trend line that has been broken
• Price action tends to stay above the 20, 50, 100 moving average lines, it signals that price is in a uptrend
• The Average direction Index is 25.73
• The Relative Strength Index is 61
• Support level at 0.7742, resistance level at 0.805

AUDUSD in a uptrend weekly chart Forex trading checklist

Second, I have to determine the direction of the trend on the daily chart.

• AUDUSD recently broke above the resistance line at 0.7740
• Price action tends to stay above the 20, 50, 100 moving averages, it shows that it is in a uptrend
• The Average direction index is 23.11
• The Relative Strength Index is 51

AUDUSD in a uptrend Forex trading checklist

At last, I can set a buy market order at 0.79.

Forex trading checklist template

Forex trading checklist is a simple and effective trading plan. You will be able to find the trading opportunity with it. Now I will show you the Forex trading checklist template.

Is the market trending or ranging?

Many beginners just want to make a lot of money in Forex trading. They never draw a trend line to identify the main trends on the daily chart.

A downtrend or an uptrend?

Many experienced traders use a 20-day moving average to determine the direction of the trend. 

What about the Average Directional Index indicator?

I think that Average Directional Index is the best trend strength indicator.

These first three questions on my forex trading checklist template help me to determine the direction of the trend. Keep in mind that the first step is to find the trend in forex.

Is there a support or resistance level?

If you found a horizontal support and resistance line, you would use a range trading strategy. For this reason, it is very important to price highs and lows. 

Are there any new releases from the Dailyfx Economic Calendar?

Sometimes the markets move so much after the a major news release. So, many veterans focus on the Dailyfx Economic Calendar.

Where is my stop-loss order?

Many beginners never think about the stop-loss orders. 

Where is my take profit order?

You should prepare for a stop-loss order as well as a take profit order

How about my leverage in forex trading?

Many experienced traders use low leverage. Personally, I use a leverage of 1:10.

Should I enter this Forex trade?

The Forex trading checklist is like a simple trading plan. If you wanted to succeed in forex, you would build a Forex trading checklist.

Here is a Forex trading checklist template:

EURADU weekly chart from ctrader

EURAUD daily chart from ctrader

Is the market trending or ranging?

• EURAUD remains in downtrend from 1.6100 on the weekly chart.
• On the daily chart, the EURAUD downtrend is ripe to continue as it touches the support levels.

What about the Average Direction Index indicator?

The Average Direction Index is below 20.

Is there a support or resistance level?

• The support level is at 1.3750 on the weekly chart.
• Resistance for EURAUD is at 1.4100 on the daily chart.

Are there any new releases from the Dailyfx Economic Calendar?

Check the Dailyfx Economic Calendar.

Where is my stop-loss order? Where is my take profit order?

• I will set the sell limit order 0.01 @ 1.41.
• Place a stop-loss order @ 1.4400, and take profit target is @ 1.3950

How about my leverage in Forex trading?

1:5

Should I enter this Forex trade?

Yes

My Forex trading checklist template can help you to find the forex trade entry points.

Further reading: Trading Support/Resistance levels