“Learning is not compulsory… neither is survival.”
… W. Edwards Deming, 1900 – 1993
If you’d like to survive in this game, you need to learn. And while the books and courses are good, the best learning comes from making trades and reviewing your performance.
So, as we approach the end of the first quarter of 2009, I thought I should prod you a little and encourage you to take some time out to review your performance so far this year. Nothing too difficult – just six quick questions.
Even if you don’t have a formal business review planned for each quarter, it can be helpful to at least pause for an hour or so to consider your performance through the first quarter. This quarter has set the foundation for the remainder of the year. If your performance has been below par then you need to identify the cause and halt the decline right now. If your performance has met your goals, then you need to recognize that as well – reward yourself, and identify what you’re doing right to reinforce the lesson.
So, if you don’t have a formal business review defined, here’s a starting point:
- Has your winning percentage meet your target percentage?
- Has your win/loss size ratio meet your target levels?
- Has your bottom line P&L met your goals?
- Have you consistently traded in accordance with your plan?
- Are you maintaining focus throughout your trading session?
- Are you enjoying your trading?
If any of the above are not meeting expectations, then you have some work to do.