Post #7365

📌10 questions to ask before entering a trade ➡️ Is the upside worth the risk? Momentum matters, but so does downside protection. The goal is the best risk-reward possible. ➡️ What is the win condition? Every trade needs a clear trigger for success. Without it, it’s just gambling. ➡️ Is there a better trade for the same thesis? Sometimes another asset offers cleaner risk-reward to express the same view. ➡️ How strong is the conviction? Conviction ties directly to position size. High conviction deserves size, low conviction doesn’t. ➡️ Is the trade overcrowded? If it’s all over the timeline, it’s likely late. Late trades can work, but upside is capped. ➡️ Where is the invalidation? Invalidation should reflect a broken thesis, not arbitrary stops. Cut when the idea fails. ➡️ How does it fit into portfolio exposure? Avoid stacking the same type of risk across multiple positions. ➡️ Does price action support the thesis? No matter how bullish the story, if price lags, the thesis is weak. Price action is king. ➡️ Does the trend favor the setup? Trading against trend is hard mode with higher risk and lower reward. ➡️ What if it goes wrong? A plan for the downside avoids irrational decisions in the moment. The best trades are clear before entry. If too many answers are missing, the trade isn’t worth it. 🫡Powered by Venture Capital