Right now as I sit and write this article, it’s coming up to the end of 2008 and I’ll be shortly taking a well-deserved break from the markets and my website.
Of course, as an admission that I’m addicted to trading, this won’t be a total break. I have some trading books to read and will be taking time out to conduct a review of my 2008 performance and to plan for 2009.
I highly recommend that you do the same.
Don’t get me wrong, reviewing your trading performance is not just a ‘once a year’ event.
I actually conduct different types of review after each trade, after each session, after each week and then again monthly. And I also complete a six monthly review, one of those being now, at the end of the calendar year.
While I will be reviewing my P&L figures and drilling right down into the stats such as winning percentage and win/loss size ratio for each of the setups, my biannual review is not so much about that stuff. That gets taken care of on a monthly basis.
The biannual review is really a chance to reflect on your results, your plan and your goals from a much higher level. And the best way to do that is…