This is partially inspired from the trade review thread yesterday. Having others review your trade is obviously super helpful too, but no one’s going to have time to review everything for you, and it’s important that you develop this skill set yourself.
I haven’t been doing too hot these past couple weeks, and my confidence took hit as a result. I felt pretty lost so I decided to review my trades.
I neglected reviewing them before because I had this invisible narrative in my head that trades were failing because I wasn’t good enough, or because there were some advanced concepts that I just couldn’t wrap my head around.
This couldn’t be further from the truth.
It’s amazing how obvious and fixable the mistakes you’re making are when you actually go back and look at your trades. Some of the stocks I bought were clearly over extended on the daily chart, and there were also a couple instances that I put my stop loss way higher than it needed to be, for no reason other than me being frustrated with my P/L. (Risk management comes first, but you should always execute based off the chart, not P/L. I shouldn’t have entered the trade if I couldn’t handle a potential loss).
I think it can be hard to notice in real time because the market is moving fast and your emotions can cloud your judgement when things go south. Going back and reviewing when after you settle down for the day, and not having to worry about being on a timer gives you a much clearer picture of your execution.
But don’t just review your bad trades, review your good trades too. Those are just as, if not more important than your bad trades. I had another narrative in my head that I don’t need to review winning trades, because why fix what isn’t broken? This is a terrible mind set. When you go back and review your winning trades you will have more confidence and conviction in your execution, and you will see more opportunities when you know what you look for. I noticed that most of my winning trades came off of flags earlier in the day, so I know I that’s something I can but more attention towards moving forward.
Just my 2 cents as a newer as a new trader, but hopefully it can serve as a reminder to anyone in a slump. I know for me personally I have a tendency to over complicate things when I gain experience. But then again, maybe that’s just a me thing.
Best of luck everyone! This sub is an amazing resource and I appreciate all of y’all for being a part of it.
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.