Date
Security
Trade Type
Price>15
Volume>1M
Avg. Volume
$ Amount
# Shares
What is the current major trend for this
security
? (bullish or bearish; higher highs & higher lows, etc....)
Am I in synch with the trend (i.e. 50 DMA/200DMA crossings/resistance) and sector?
What is my desired entry price?
What is my desired exit price?
Have I set a stop loss? What percent am I willing to lose before exiting? Will this preserve capital?
What timeframe does this stock cycle on?
Does the RSI support this decision?
Does the MACD support this decision?
Does recent price direction and volume support this decision?
Any other mega-trends to consider (news, dollar, rates, energy prices, etc...)?
Are there major support lines that support the decision?
Has the security recently broken through major historical support?
What is the total amount of money I want to invest in this security that is commensurate with a balanced portfolio?
How many days/weeks and how many installments will I take to invest this money (3-4 recommended since calling a top/bottom impossible)?
Since the market is designed to fool most people most of the time, am I seeing what I WANT to see? Have I seriously considered the opposite trading position?
Does this decision take courage or is it a 'sure thing'. ;)?
What prejudices and emotions am I bringing to the table that may be giving me clouded judgment?
Do I have the emotional competency and
principles
to handle this decision... or will it keep me up at night if it starts going wrong?
Have I looked at any other securities in the same sector that may be better performers?
Are there any visual indicators that support the decision (candlesticks, bullish/bearish patterns, channels, funnels, etc....?
Does this choice support your family and a long-term trading career?
Attach any corporate reports on this security.
Attach
chart
showing T/A work done for this purchase.
Signature_________________________ Date ____________ (If this doesn't keep you from investing in a stock 4 of 5 times you aren't reading it carefully!!)