Info!! Rigorously Reviewing Your Trading

One affair I'll move talking most inward Saturday afternoon's NYC meetup for My Investing Club volition move an enhanced review procedure I've initiated for my ain trading.  My full general observation is that the frequency as well as intensity of review processes is associated alongside learning as well as functioning improvement.  What I'm testing alongside the enhanced procedure is whether making the review structured as well as concrete too contributes to the learning as well as evolution curve.

So what I did was write out all my trading rules inward a two-page Word document.  The rules are broken downwardly to explicate inward detail:

a) What I bespeak to reckon to come inward a seat (This includes criteria on multiple fourth dimension frames);
b) What I bespeak to reckon to state me the seat is incorrect;
c)  How I bespeak to size the position;
d) What I bespeak to reckon to produce got initial profits as well as the constituent of the seat to produce got off;
e)  What I reckon equally a subsequent target as well as where to produce got the remainder of the seat off;
f)  When to non trade; when to merchandise to a greater extent than actively; when to merchandise to a greater extent than selectively.

This trading document/plan serves 2 of import purposes:

1)  Review earlier trading starts to ensure that the rules are beingness followed inward generating ideas, alongside special emphasis on the rules relevant to the prior day's trading;

2)  Review at the destination of trading to assess whether rules were followed as well as specially to aspect at how a next of the rules could produce got improved the day's trading;

3)  Targeting 1 or to a greater extent than rules to focus on for the coming session to improve trading.

The thought is that every twenty-four hr menstruum is a practise province of affairs inward implementing the trading framework.  Over time, nosotros popular off to a greater extent than grounded inward our best practices, as well as nosotros too amend equally rule-governed traders.  This is the value of having a truthful playbook for each marketplace as well as strategy that nosotros trade, as Mike Bellafiore has illustrated.

What I tin state yous from my sense is that only the human activeness of putting your trading into a real tight, clearly defined rules framework highlights the factors of what nosotros most bespeak to focus upon to improve our performance.  If nosotros cannot select our best practices on newspaper inward a agency that others tin understand, how tin nosotros hold off to move grounded inward them inward existent time?

Further Reading:

The Art of Getting Better

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