Trading is a process of continuous learning. If a trader pays close attention to what was done wrong or could have been done differently in past trades, a trader can greatly improve future performance.
For example, a trader may notice that most of trades done after1:30 gives profit and done between 10-11 Am are generally loss making trades. A trader can avoid doing trades in that period.
In fact, by doing a postmortem on all trades, a trader may be able to work on his trading strategy with high degrees of confidence. A trader must make every effort to limit losing trades and a thorough trade postmortem is an important part of each trade.
The trade postmortem and analysis is the final step in closing out a trade. A trade has not been completed until this vital step has been accomplished.
Your Losing trades are your weakness where you were defeated by markets.Do not let your loss go for nothing.
Learn from it,Analyses your mistakes.
Most Profitable Traders talk to themselves.Spend time with yourself ask Yourself question i have listed and be Honest with the answer.
You yourself are your best critics
- Did I has a trading plan?
- Did I Follow my trading plan properly?
- Did I do anything wrong and if so, why?
- If I did follow my plan correctly and got Stopped out, Do not feel bad about it.
- If I didn’t follow my rules but still made money, need to work on thos
- Why didn’t I follow my rules?
- Do I have confidence on my trading system?
- Do I bring in EGO in my trades
The Trading Journal-your best friend.