# Prop Firm Trading Journal Checklist — Before Every Trade > A simple pre-trade checklist in your journal prevents the most common prop firm rule violations. Here is what to verify before entering any funded account trade. **Tags:** prop-firm, checklist, pre-trade, risk-management, funded-account **URL:** https://traderjournal.app/prop-firms/prop-firm-trading-journal-checklist-before-every-trade --- # Prop Firm Trading Journal Checklist — Before Every Trade Most prop firm account failures happen in one of three ways: exceeding the daily loss limit, exceeding the maximum loss limit, or taking an oversized position on a news event. A pre-trade checklist prevents all three. ## The Core Pre-Trade Checks Before entering any trade on a prop firm account, verify these five items: ### 1. Current Day P&L What is my P&L so far today? How much room do I have before the daily limit? Example: Daily limit is 5% ($2,500 on a $50,000 account). I am currently down $800 today. I have $1,700 remaining before the daily stop. In Trader Journal, today's P&L is visible on the home screen. The daily loss limit notification alerts you when you approach the threshold, but check manually before any new position. ### 2. Current Maximum Drawdown Status Where is my account relative to the maximum loss rule? Example: Maximum loss is 10% ($5,000). My account peak was $51,200. My current balance is $49,500. I have $900 before the maximum loss breach. This is less commonly checked before individual trades but essential if you are in drawdown. ### 3. Position Size Calculation What lot size keeps my risk within plan on this trade? Given your intended stop loss distance and account size, calculate the correct lot size using the Trader Journal risk calculator before entering. A trade that risks 3% of account on a prop firm is a violation of discipline — and potentially of the firm's rules if they have maximum position size requirements. ### 4. Open Position Check Do I have any open positions currently? What is their floating P&L? If you have a trade running at -$600 and enter another trade risking -$500, you may hit your daily limit even if both trades eventually recover. Know your total current exposure before adding. Check the Open Positions screen in Trader Journal before any new entry. ### 5. High-Impact News Check Is there a scheduled news event in the next 30 minutes that could move the market sharply? Many prop firms either prohibit trading during high-impact news or require you to be out of positions before major announcements (Fed rate decisions, NFP, etc.). Know the rules for your specific firm. If you trade news events, this is a deliberate choice with appropriate sizing. If you do not trade news, closing positions before major events prevents surprise drawdowns. ## Adding the Checklist to Your Trade Notes In Trader Journal, create a note template using the custom fields. For each trade entry note, include a brief confirmation of the checklist items: "Day P&L: -$200. Daily room: $2,300 remaining. Max drawdown room: $4,100. Size: 0.3 lots (1% risk). No news next 1hr. Entry: London break above 1.0820." This five-second note confirms you completed the checks and gives you context for the trade review later. ## After Losing Trades: The Mandatory Review After any losing trade on a prop firm account, before opening another position: 1. Update your notes in Trader Journal with the reason for the loss 2. Recalculate your remaining daily drawdown room 3. Decide consciously whether to continue trading, take a break, or stop for the day The conscious decision is the key step. Many traders lose multiple trades in a row on prop firm accounts simply by moving from one trade to the next without pausing. The note-writing step forces a pause. ## Building the Habit The checklist takes 60 seconds per trade for the first month. After that, it becomes automatic — you will notice if something is off before completing the check. Traders who build this habit consistently report fewer impulsive trades, better size discipline, and higher pass rates on prop firm evaluations. The checklist does not improve your strategy. It prevents your strategy from being undermined by emotion and inattention.