How To Review Your Trading Performance

I think it’s a really useful point to discuss because the markets get high, like trading gets hard psychologically at times. And the last two years for me have not been my favorite two years out of my trading journey. Let me tell you it’s okay because I know it’s normal. It comes and goes.

And sometimes the money is so easy. It’s crazy. And sometimes the money is much, much harder. It has been at different points in time. The first thing I like to do is satisfy myself that I’m doing everything right. Am I making mistakes? Am I getting too much slippage? Am I taking the right trades?

So that’s like execution. Did I do that correctly? Because if I didn’t do that correctly, then a big part of the problem is my fault and I can fix it, right? It’s up to me. If that’s all correct and okay, the next thing is, are my systems doing what I would expect given what has happened in the market? I want to ask myself, Okay. Are my systems doing what I would expect given what the market is doing? And if the answer is yes, and you can do that qualitatively and quantitatively, if the answer is yes, then the next logical question is, am I missing some systems from my portfolio that might help in that sort of environment?

And, maybe yes, maybe no, maybe you’ve got a system on the sideline that you just haven’t implemented yet that might be useful. Maybe it’s a gap and you just don’t have a system for that market behavior. That’s more likely, right? But that gives you something to focus on to improve your portfolio for future cycles.

So it’s good to look at this and do a, a real introspection and say, okay I’ve got some gaps.