When a trading session ends, many traders tend to make a common mistake that can impact their overall performance. This mistake involves failing to review their trading activity and positions properly.
Failing to review your trades and positions can harm your trading career. Analyzing your performance during the session and identifying improvement areas is important. This allows you to make necessary adjustments and avoid making the same mistakes in the future.
To conduct a proper review, evaluate your performance against your trading plan and objectives. Did you stick to your plan or were there deviations? Did you make impulsive decisions that went against your strategy? Were there any trade patterns that you can identify and improve upon?
Next, analyse your positions and assess their risk levels. Were you properly diversified or overexposed to certain markets or securities? Did you manage your risk appropriately, or were you too aggressive or too conservative?
Finally, note any external factors that may have affected your performance, such as news events or market conditions. By considering these factors, you can better understand how they impact your trading and develop strategies to mitigate their impact in the future.
In conclusion, properly reviewing your trading activity and positions before leaving a trading session is crucial to improving your overall performance. By identifying areas for improvement and making necessary adjustments, you can enhance your trading skills and achieve greater success in the markets.
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