Checklist are used in different professions to standardize procedures and to minimize the potential for errors. When someone is doing the same task repeatedly, it’s easy to get sloppy or not give it the seriousness it deserves when you believe that you know how to do it anyway.
Trading is the ideal field for utilizing checklists because traders repeat the same things over and over again. Especially if you are a technical trader, you are usually trading the same patterns and following identical rules and signals for each trade.
A trading checklist usually lists all the signals or the criteria that you require before you can enter a trade. It’s also a good practice to start writing down the criteria and if you notice that you are not really clear about your rules and what defines a trade entry, then maybe you don’t know your system as well as you thought. Back to the drawing board!