Friday, May 15, 2009

Three Questions for the End of the Trading Day

After going over the three questions at the start of the trading day, a reader suggested that I post three questions for the end of trading. Here are my candidates; feel free to comment on the post and suggest others:

1) Did I trade well today? - Did I make good use of my preparation? Did I follow rules about position sizing and execution? Did I adapt well to shifts during the trading day? Was I patient in finding trades with good risk/reward characteristics?

2) What did I learn about myself today? - What about today's trading can I bring to the next day to make myself better? How can I learn from what I did right and wrong today? What goals can I set for tomorrow to make sure that I carry over that learning?

3) What did I learn about markets today? - Did markets do what I expected? Are my views on markets any different based on today's trade? What levels did I observe in today's trade that can inform decision making tomorrow? What themes from today will I be tracking tomorrow?

The questions are designed to carry your learning process forward, so that losing days can still pose opportunity. A simple journal to respond to these questions at the end of the day could meaningfully accelerate a trader's learning curve. More on keeping trading journals here and here.