Friday, March 05, 2010

Questions for Your Trading Business

A while back, I published a useful set of self-evaluation questions for traders. Here are a few more questions to help guide your development:

1) What specific goals did you work on this past week in your trading? What progress did you make?

2) What setups/patterns account for the majority of your profits? Have you actually assessed this?

3) What is the greatest source of losses in your trading? How are you addressing this?

4) How do you prepare for the trading day? How consistent are you with the preparation?

5) How do you know if you're taking the right amount of risk in your trading? How do you control risk? How do you maximize reward?

6) Based on the amount and consistency of effort you put into trading, do you feel that you deserve to be successful? Would someone with the same degree and consistency of effort be successful in other endeavors, such as sports or performing arts?

7) What do you do that is unique as a trader, that would lead to unique and positive results?

Your answers to these questions will speak volumes about your trading business and how well thought-out that business is.