Let’s face it – trading Forex can be hard work. It’s a constantly changing market, and it’s easy to lose your way. But that’s where a trading checklist comes in handy.  

So, with that in mind, here’s a rundown of why trading checklists matter. And we’ll give you a template for a Forex trading confirmation checklist, so you can write your own!  

What Is a Forex Trading Checklist?

A Forex trading checklist is a rundown of everything you should know about a trade before you buy or sell. In other words, it’s questions you should answer before you make any trading decisions. 

Benefits of a Forex Trading Checklist

Checklists have various benefits – let’s break them down. 

• Checklists encourage discipline. They help you stay on track and focused on the right things.  
• A checklist helps you avoid making common mistakes.  
• With a checklist, there’s less chance of you forgetting something crucial.  

Your trading checklist is key to making informed, successful trading choices. It should be part of any Forex trading strategy. 

What Is a Forex Trading Plan?

Okay, so that’s a Forex trading checklist. But what makes it different from a trading plan? Well, there are a few key differences between a Forex trading plan and checklist.  

• A Forex trading checklist is a day-to-day list of questions. It helps keep you focused and organized on a short-term, daily level. You should use it before every trade.  
• A Forex trading plan is your overall, long-term strategy for trading Forex. It’s a roadmap of sorts, showing you where you want to go, and how you’ll get there. 

When to Use a Forex Trading Plan or Checklist

It’s super common to confuse trading plans and checklists. After all, they are similar, and they’re both necessary.  

However, a trading plan and checklist, as we’ve talked about, are different things. Here are a few tips for when to actually use each one.  

When should you use a trading plan? You can use your trading plan every day. But it’s more of a reference guide. You should use it when you’re thinking about: 

• Your trading goals 
• What kind of trader you want to be 
• How much money you can afford to lose  
• How you will track your progress 

A trading checklist is something you should use frequently throughout the trading day. It’s how you decide: 

• When to buy 
• When to sell 
• Your risk-to-reward tolerance (i.e. how much you are willing to lose) 
• What trading opportunities to focus on 

So, a successful trader will have both trading plans and checklists. And they will use them both at the right times, depending on what their overall goal is.  

Your Forex Trading Checklist Template

Ready to write your own Forex trader checklist? Here are the steps you should work through. And remember, it’s a good idea to use this checklist every single day. That way, you won’t accidentally overlook something important.  

1. Check Your Trading Position

First, check your starting position for the day.  

• Check your opening balance. You need to know what you’re working with. 
• Did you hold any positions overnight? Day traders don’t normally do this, but it can happen. And if it did, you need to know how you performed.  
• Check in on yourself. Mentally, how are you feeling? Ready for the day ahead? If you’re stressed or angry, put those feelings to the side.   

2. Know Your Trading Plan 

Okay, so you’re set up for the day and ready to go. But what is your game plan for the day? What is your trading plan? You need to think about the answers before you make your first trade.   

• Every move you make should be in line with your overall trading strategy.  
• Risk management is key. Don’t risk any capital – or simulated funds – that you don’t want to lose.  
• Stick to your trading plan always. Having a plan is how you can track progress and become a better trader overall.  

3. Look at Market Movement 

Next, scope out the market. What is it doing? This step is about finding market trends.  

• A “trend” is what’s happening to an asset’s price within a timeframe.  
• Depending on your trading strategy, you might go with the flow of the trend. Or you might go against the trend. It all comes down to your own trading style.   

Even if you focus on price ranges rather than trends, you should still be aware of an asset’s overall direction.   

4. Check for News or Events

Don’t forget how much of an impact that news and current events have on traders’ moods. Big stories and breaking news can have a huge impact on markets – especially volatile ones like Forex. So, check for: 

• Natural disasters 
• Breaking news 
• Expected financial news e.g. company reports 
• Other relevant economic data you can find 

You should check for breaking news periodically throughout any trading day. 

5. Identify Price Action

Next, it’s time to get a little technical. Before you trade, you want to figure out: 

• Profit target: Okay, so you can’t guarantee what you’ll make in a given day. But you can have a goal to work towards.  
• Support and resistance levels: Support is the willingness to buy. Resistance is when there are more traders selling than traders looking to buy. You need to look for ranges, or trends, before you make a move.  
• Indicators: Are the trends you spot confirmed by any indicators? This is when knowing how to read trading chart patterns is key. Look for indicators to support what you’re seeing. 

6. Know Your Exit Strategy

Sure, you want to buy. But you need to know when to sell and get out. So, figure out your entry and exit position and when you know it’s time to go.  

You might use a “stop-loss” or another strategy for managing your risk. It all depends on your day trading strategy. 

7. Double Check Details Are Correct

It sounds obvious, but double check everything before you make a trade. It’s super easy, especially when you’re busy, to accidentally type in a wrong detail. But it could cost you a lot of money or stop you making a profit! 

Once you’ve checked that you’re ready to go, it’s time to get comfortable. You’re about to start your trading day!  

Start Your Maven Trading Journey

Successful traders aren’t made overnight. This is a journey that takes time. And time is something we have!  

At Maven Trading, there’s no rush to complete challenges or reach certain goals. It’s all about building a community of talented traders – together, we can grow. To learn more about becoming a Maven Trading trader, contact us or select your challenge now.