No System? The Boring 3-Check Routine Professionals Run Before Every Trade

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The Three-Check Routine Professionals Run Before Every Trade

The gap between the market's return and the average investor's return is caused by emotion, not by a lack of information. Professionals close it with a written Investment Policy Statement and a fixed pre-trade routine: check volatility (is the fear gauge spiking, which signals forced selling?), check that your strategic cash reserve is intact, and confirm every position has predefined exit criteria set before you buy. None of the three checks requires a forecast. They exist to take the one decision emotion ruins — when to act — out of the heat of the moment and settle it in advance.

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