Trader checklist (draft)

I'm beginning to flesh out the skeletons of a trader checklist. The idea is that this would provide a systemic method to deal with all the random thoughts I have racing around in my head. And because I've got the memory of a goldfish, it will provide a solid basis to ensure that my analysis is always balanced against the big picture.

I guess this draft is somewhat half finished, with more to come.


Money management
What is Chng's current exposure?
Is it time to cut the trade and limit Chng's exposure? (90% of profits come from 10% of trades)
How much risk to allocate to the next trade idea?
Are the odds so superior to ask for a 20X trading size? (90% of profits come from 10% of trades)
Has Chng suffered from recent losses? If yes, scale down. (Earn the right to scale back up)

Emotional state
Is Chng calm, rational, and patient?
Is Chng 100% focused?
Tired? Distracted? Bored?
Suffering from tilt? Recent mood swings? Performance anxiety? Unwilling to accept losses?
Overconfident? (Likely to lead to skewed R:R and greater losses)
Is Chng ready and willing to trade?

Market sentiment
What is the market focused on currently?
What are the major macro theme(s)?
To what extent are these priced in?
How long can the market continue trading on these themes? (Trend is your friend)
Does price action confirm this? If not, then what is Chng missing from the big picture?
What can shift the market's focus? Where to?
Is this already happening?
What are the major upcoming news and events that can shape market direction?
How will the market react to these?
Has the market mispriced (or failed to adequately price) any of these actual or potential themes, news or events? (Trade against the herd)
What is the likelihood of market adjustment? When?
What is the best way to profit from the adjustment?

Market positioning
How are traders positioned?  Is the trade becoming overcrowded? (Check the COT and Sentiment Trader)
Elliot wave psychology
Phase 1 - smart money and bottom/top pickets start the move
Phase 2 - market is overvalued and profit taking occurs
Phase 3 - bargain hunters swoop
Phase 4 - market is overvalued and profit taking occurs
Phase 5 - irrational herd participation kicks in
Phase 6 - ABC blow-off

Market technicals
Stops
Major levels
Option barriers
Liquidity
Where is the best place for large players to enter/exit?
Price action
Does the price action match market sentiment?
If yes, is the price action supported by volume and open interest?

Clearly defined trading plan
XXXX

What if Chng took the opposite side of this trade? What information advantage could Chng be having? (Testing for overconfidence)
Exiting: what will determine that the trade is wrong?
How can Chng use this to profit?