Improving Your Trading Results

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…

 ASK YOURSELF QUESTIONS!!!

 I know, you’d rather me just give you the answers, but that’s not how life or trading works. (At least not in 2008. Maybe next year will be different?) The real insights in life come from questioning what is happening and allowing your inner-mentor to provide the answer.

 Ideally, the questions will also be customised to your needs. If you relax into the process you’ll know the questions to ask. But to get you started, maybe some of the following questions will help provide you with an insight which will make 2009 your best year yet.

 

• Am I enjoying myself?
   
• Have I achieved my trading goals? Why? Why not?
   
• Are my trading goals still relevant?
   
• Is my trading plan current? Does it accurately reflect how I trade?
   
• What is the strongest part of my trading plan? What can I do to improve it?
   
• What is the weakest part of my trading plan? What can I do to improve it? What can I do to minimise the risk or impact?
   
• What is the area of my trading plan that I haven’t really developed to its fullest potential?
   
• Do I really know whether my plan provides a positive expectancy? How do I know?
   
• What is one thing I could do right now to improve my pre-trading preparation?
   
• What is one thing I could do right now to improve my identification of setups?
   
• What is one thing I could do right now to improve my entries?
   
• What is one thing I could do right now to improve my trade management?
   
• What is one thing I could do right now to improve my exits?
   
• What is one thing I could do right now to improve my post-trade review process?
   
• What is one thing I could do right now to improve my record keeping?
   
• What is one thing I could do right now to improve my longer term reviews (weekly, monthly, biannually)?
   
• What is one thing I could do right now to improve my discipline?
   
• What is one thing I could do right now to improve my consistency?
   
• What is one thing I could do right now to improve my trading psychology?
   
• What is one thing I could do right now to improve my money management?
   
• What is one thing I could do right now to improve my risk management?
   
• What do I fear most in my trading?
   
• What am I embarrassed to talk to others about when discussing my trading?
   
• What was the low point of the last six months? What will I do to prevent that reoccurring?
   
• What was the high point of the last six months? What will I do to ensure that repeats again in future?
   
• How do I plan to improve in coming months?
   
• What are my current life goals? What are my current trading goals.

 

It’s that simple. Hopefully there’s one or two in the list that you really related to. If not, you’ll need to find your own question. Relax, and ask yourself, ‘What is the most important question I need to ask myself to improve my trading?’ Then let the question go. The answer will come when it’s ready.

Here’s hoping 2009 is the best year of your life so far!

Cheers,

Lance Beggs.