Friday, November 18, 2016

What Do You Do After a Big Winning Day?

A little while ago, a trader who has been quite successful this year sent me a draft of his trading plan for the new year.  Shortly after, he had his best day of the year.  I have little doubt that he'll use information from the winning day to help him build on his strengths and hone his goals for 2017.

That's what winners do.  They learn from what they do wrong, they learn from their successes, and they translate their lessons into plans and actions.  A big winning day is a double win if you can figure out what you did well and replicate that success going forward.  Maybe the big day was a function of a particular type of market action that you recognized early on.  Maybe the big day was a function of researching great trade ideas.  Maybe the big day was a function of sizing up a position you had prepared well and saw clearly.  

Suppose you catalogued your top 10 trades of the year, where you fired on all cylinders, making the most of your trading process.  What patterns of success would you discover?  What best practices could you identify that you could bring into the new year?

Good traders celebrate after a win.  Great traders treat wins like losses and learn from both.

Further Reading:  How to Become a More Confident Trader