How strong is my reasoning for entering this trade?

Check 8 statements about your catalyst, invalidation level, target, sizing, plan alignment, and independent reasoning. A score of 7 to 8 reads as a strong thesis, 4 to 6 as partial, and 0 to 3 as weak.

How is this different from a pre-trade checklist?

A pre-trade checklist usually covers operational readiness, like whether your stop is set and your size fits your risk rule. This scorecard specifically grades whether your reason for taking the trade holds up on its own.

Trade Thesis Strength Scorecard

Check What's True For This Trade

Check every statement that's true for this specific trade idea, before you enter.

I can state the specific catalyst or setup driving this trade in one sentence.
I know the exact price level that proves this idea wrong before I enter.
I have a defined target where I'd take profit, not just an open-ended "let it run."
My position size was calculated from my risk rules, not guessed.
This setup matches criteria already written in my trading plan, not a one-off exception I'm making today.
I'm not entering because of a headline, a forum post, or someone else's trade alert.
I've considered at least one specific reason this trade could fail.
I'd still take this exact setup on a slow, uneventful day, not just because the market feels exciting right now.

Your Result

Check the statements that apply to this trade idea and click Grade My Thesis.

How this is calculated

Each checked item adds one point toward a total of 8 possible points, covering catalyst clarity, invalidation, target, sizing, plan alignment, and independent reasoning.
This grades the strength of your reasoning for entering, not your operational readiness. Use the Pre-Trade Go/No-Go Checklist to check whether your stop, size, and portfolio heat are actually set before you place the order.
This is also different from the Trade Quality Scorecard, which grades a completed trade's process after the fact. This scorecard is meant to be filled out before you enter, while the thesis can still change your mind.
A strong thesis doesn't guarantee a winning trade. It means your reason for being in the trade can survive being written down and questioned, rather than existing only as a feeling.

Risk & liability disclaimer: This tool is an educational self-check only. It is not financial, investment, or tax advice. Trading Habits is not a broker-dealer, registered investment adviser, or tax professional, and is not affiliated with any broker, exchange, or data provider. Always verify results independently and consult a licensed professional before making any trading or financial decision.

How strong is my reasoning for entering this trade?

Check What's True For This Trade

Your Result

How this is calculated

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