Critical Questions to Ask

As we continue to see key data release this week, I am still working on building my views on positioning for the month of September, meanwhile, here are critical questions the analyst should always ask as he builds a solid thesis around trade ideas, either on the Macro or Technical basis:

• How did we get here?

• What mode of behavior are possible from where we are now?

• Where are we likely to end up based on the possible mode of behavior?

• If we don’t change direction, where are we likely to end up?

• What are the triggering events?

  • What outside influences can impact the mode of behavior

In addition to these questions, it is also key to journal your experience on what is working well.

Overall, you should aim to build a process for optimizing information flow and paying attention to what is important right now even if everything is quantifiable