One sentence of rationale before every entry
Posted: Sun Nov 01, 2026 10:55 pm
A small habit that changes a lot: write one sentence explaining why the trade exists before clicking buy or sell. Not afterwards, when the outcome is known and memory starts editing itself.
The sentence should name the setup, the invalidation point, and what would make the idea wrong. For example: 'Long EURUSD on a retest of yesterday's high, invalid below 1.0820, wrong if the retest fails within an hour.' If the sentence cannot be written clearly, that is often a sign the trade is impulsive.
Over a month, these sentences become a record of decision quality that is separate from results. A losing trade with a clear sentence is a cost of doing business. A winning trade without one is luck that may encourage a bad habit.
Some traders keep this in a text file, others in a spreadsheet column. The format matters less than doing it every time, including on days when it feels unnecessary.
Does anyone here write a pre-trade note, and how long is yours?
The sentence should name the setup, the invalidation point, and what would make the idea wrong. For example: 'Long EURUSD on a retest of yesterday's high, invalid below 1.0820, wrong if the retest fails within an hour.' If the sentence cannot be written clearly, that is often a sign the trade is impulsive.
Over a month, these sentences become a record of decision quality that is separate from results. A losing trade with a clear sentence is a cost of doing business. A winning trade without one is luck that may encourage a bad habit.
Some traders keep this in a text file, others in a spreadsheet column. The format matters less than doing it every time, including on days when it feels unnecessary.
Does anyone here write a pre-trade note, and how long is yours?