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Trading psychology

The pre-market trading mindset checklist

Pilots don’t skip the checklist because they feel fine. Two minutes before the open catches most of the days you shouldn’t be trading at full size.

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“The investor’s chief problem — and even his worst enemy — is likely to be himself.”

— Benjamin Graham, The Intelligent Investor · Share this quote

Before the open (2 minutes)

  1. Sleep: how many hours? Under six, trade smaller.
  2. Mood (1–5): anything outside trading weighing on you?
  3. Yesterday: are you trying to make anything back today? If yes, half size.
  4. Plan: key levels and the setups you are looking for, written down.
  5. Limits: daily loss limit and max trades, written down.
  6. Prop accounts: today’s drawdown floor and distance to it — see trailing drawdown explained.
  7. One rule to focus on today.

During the session

  • After any loss: a short pause before the next entry.
  • After hitting your loss limit or max trades: done, no exceptions.

“Don’t focus on making money; focus on protecting what you have.”

— Paul Tudor Jones, widely attributed · Share this quote

After the close (3 minutes)

  1. Rules followed / total rules.
  2. Best decision of the day (not best trade).
  3. Worst decision and what triggered it.
  4. One thing to keep, one to change tomorrow.

Make it stick

A checklist you fill in on paper and never look at again only does half the job. The value is in the pattern over weeks: your worst days probably share a mood score, a sleep number or a “trying to make it back” tick. Put the checklist in the same place as your trades so you can see the connection.

“Anything can happen.”

— Mark Douglas, Trading in the Zone · Share this quote

FAQ

What should be in a trading routine?

A pre-market plan with levels and setups, written limits, a quick mood and sleep check, and a short post-market review.

Does mood really affect trading results?

For many traders, yes — comparing a simple daily mood score with results in a journal often reveals the pattern.