The 4 Steps to Run Before Every Trade
Watch a good golfer for a few holes.
Same walk behind the ball. Same practice swing. Same look at the target.
Every shot, whether the last one found the hole or the trees.
There's a reason for it. A routine gives the mind one small job to do.
When your attention has a short, simple sequence to follow, there's less room for nerves, the last result or the "what if" voice to take the wheel.
Trading works the same way. Yet most traders spend hours on their strategy and almost no time on the few seconds before they click.
That's often where it slips. The setup was fine, but the last trade, a bit of nerves or a "what if" crept in and made the decision for you.
A simple pre-trade routine helps with a lot of that. It gets you in the right headspace before every entry, so you're trading at your best, not just reacting.
Here are the 4 steps I'd run, and how to make them your own.
Why a routine helps
It turns "should I, shouldn't I?" into a few steps you've already agreed with yourself.
And it means every trade feels like the same easy process, whatever happened before it.
The 4 steps to run before every trade
→ Check. Do my rules say yes or no? If it's not a clear yes, it's a no.
This is where simple rules really help. The fewer conditions you have, the quicker this step is. I want a yes or no answer here, not a debate.
→ Set. Stop, target and size, decided before you click. Not after.
Once you're in the trade, your head is in a different place. Make these decisions while you're still calm.
→ Breathe. One slow breath out. Shoulders down. Eyes on the chart.
It takes a few seconds, and it's the bit that stops you rushing in.
→ Commit. Click, then hands off. The trade is now doing its job.
Close the order window, set an alert, step away if you need to. Your work was done before you clicked.
The bit most people miss
Run the exact same routine after a loss as after a win. Same steps, same pace.
After a loss it's easy to rush the next one to win it back. After a win it's easy to get loose and skip a step.
Keeping the routine the same either way is what stops one trade leaking into the next.
You can't control where a trade finishes. You can control how you step into it.
Make it your own
Your routine should sound like you. Keep each step short enough to say in one breath. Four steps is plenty, and fewer is fine.
→ What starts it. Your alert going off, or price reaching your level.
→ Your check. The one yes or no question you ask about your rules.
→ What you set. Stop, target and size.
→ How you settle. A breath, sitting back, hands off the mouse.
→ What you do once it's placed. Close the order window, set an alert, step away.
Score the routine, not the result
After each trade, one line in your journal: did I run my routine? Yes or no.
That's the only score that matters for now. Try it for a week and see how different your entries feel.
Keep it in front of you
Screenshot this and keep it by your screen:
Check → Set → Breathe → Commit. Same routine, win or lose.
Quick answers
What is a pre-trade routine?
A pre-trade routine is a few simple steps you run before every entry, like checking your rules, setting your stop, target and size, taking a breath and then committing. It gets you in the right headspace so you're trading at your best, not just reacting.
How do I stop one losing trade affecting the next?
Run the exact same routine after a loss as after a win, with the same steps at the same pace. Keeping it the same either way is what stops one trade leaking into the next.
How do I stop overthinking my trade entries?
Keep your rules simple so the check becomes a clear yes or no. If it's not a clear yes, it's a no. When your steps are already decided, there's less room for nerves or "what if" thinking.
How long should a pre-trade routine take?
Not long. Keep each step short enough to say in one breath, and four steps is plenty. The breathing step only takes a few seconds.
Have a good week,
Alan Edward
Want more like this?
I send one short email a week on the mental side of trading and keeping it simple. No hype and no signals. Join the free newsletter here.
Two more ways I can help, whenever you're ready:
Watch the free video on how I trade in about 10 minutes a day with simple, rule-based swing trades on the daily chart.
Read The Blueprint To Trading Psychology, my short book on why you break your own rules and how to stop.
About Alan
Alan Edward (The Divergent Trader) is a full-time trader. It took him about five years to get consistent, and he now teaches a simple, low-screen-time way to trade, plus the mental side that goes with it.
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