The Ultimate Checklist Every Day Trader Must Know (Or Lose Money)

1. Technical Analysis

• Definition:
  • Studying price charts and patterns to predict future movements.
• Core Topics:
  • Support and Resistance
  • Trend Lines
  • Candlestick Patterns
  • Chart Patterns (flags, triangles, head and shoulders)
  • Indicators (moving averages, RSI, MACD, VWAP)

Why it's important:

• It’s the foundation for finding entries, exits, and managing trades.

2. Price Action Reading

• Definition:
  • Interpreting raw market movements without heavy reliance on indicators.
• Core Topics:
  • Breakouts and Fakeouts
  • Volume Analysis
  • Key Levels and Zones
  • Order Flow Basics (advanced)

Why it's important:

• Gives you a real-time pulse of market psychology.

3. Risk Management

• Definition:
  • Protecting your trading capital by managing losses.
• Core Topics:
  • Setting Proper Stop Losses
  • Position Sizing (based on risk per trade)
  • Risk-to-Reward Ratio
  • Win Rate vs. Payoff Ratio

Why it's important:

• Winning traders lose often, but they lose small and win big.

4. Trading Psychology

• Definition:
  • Mastering your emotions during live trading.
• Core Topics:
  • Handling Greed and Fear
  • Staying Disciplined
  • Building Patience
  • Managing Stress and Confidence

🛠 Why it's important:

• Most trading mistakes happen because of emotions, not bad strategies.

5. Strategy Development

• Definition:
  • Having clear, written rules for how you will trade.
• Core Topics:
  • Entry and Exit Criteria
  • Setup Validation (confirming a good trade)
  • Playbook Creation (list of favorite setups)
  • Backtesting and Forward Testing

Why it's important:

• A plan avoids random, impulsive trading.

6. Market Fundamentals (Basic)

• Definition:
  • Understanding what drives market movement outside of charts.
• Core Topics:
  • News Impact (Fed announcements, earnings reports)
  • Economic Indicators (GDP, inflation, interest rates)
  • Sector and Market Sentiment
• (Optional for pure price action traders, but still useful)

Why it's important:

• Helps avoid trading into major events and unexpected volatility.

7. Execution Skills

• Definition:
  • Placing trades quickly and correctly under pressure.
• Core Topics:
  • Order Types (Market, Limit, Stop)
  • Hotkeys Usage
  • Fast Decision-Making
  • Platform Mastery

Why it's important:

• Bad execution can turn a winning trade into a losing one.

8. Data Review and Self-Improvement

• Definition:
  • Constantly analyzing your own trades to get better.
• Core Topics:
  • Trade Journaling
  • Reviewing Wins and Losses
  • Pattern Recognition from Your Own History
  • Refining Weaknesses and Doubling Down on Strengths

Why it's important:

• Day trading is a skill — regular feedback and iteration is how you improve.