Your worst trade:
- Did you trade the actual price action or just your opinion?
- Were you trading with a stop loss? Did you honor your stop loss or let a small loss turn into a big one?
- Did you fight the trend in your time frame?
- Did you try to front run an actual signal before it triggered?
- Were you trading with a bias that made you see what you wanted to see instead of what was actually happening?
- Did you trade with a trading plan?
- Was your position size too big?
- Did you allow fear, greed, or ego to override your trading plan?
- Did you trade in a market you did not fully understand?
- How much did your stubbornness cost you?
Your best trade:
- Did you trade on a high probability setup based on a chart pattern or backtested entry signal?
- Did you enter with a great risk/reward ratio?
- Were you able to let a winning trade run as far as it would go?
- Did you trade on the right side of the trend for your time frame?
- Were you able to trail your stop to let your winner run?
- Did you trade in a market after doing your homework?
- Did you keep your opinions flexible but your trading plan firm?
- Did you react and trade the actual price action in your time frame?
- Did your discipline pay you a nice dividend?
- Did your small position size allow you to trade in a clear and logical manner?
A trading journal teaches us about ourselves. If you are not keeping a trading journal, I strongly suggest that you make it one of your New Year’s resolutions. Analyzing your biggest losing and winning trades each year is a window into your trading psyche. This kind of self analysis will show you what you should do more of, and what you should avoid in 2015. Remember, a significant key to trading success is to do more of what works and less of what doesn’t work.