Most traders lose money because they chase. They see green candles and FOMO in. Here's what I actually look at before putting capital to work:

1. Volume confirmation. Price means nothing without volume behind it. If a stock breaks out on low volume, it's a trap. I need to see at least 1.5x average volume on the breakout candle before I care.

2. Key level respect. Is price reacting to a level that matters? Support/resistance from the daily or weekly chart, a VWAP reclaim, a prior day high. If it's just floating in no-man's land, I'm not interested.

3. Risk/reward of at least 2:1. If I can't define my stop and see at least 2x upside to my target, the trade doesn't exist. Period. This one rule alone saved my account when I was starting out.

These aren't revolutionary. But 90% of traders skip at least one of them on every trade. Don't be that trader.

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