Over the past two days, I’ve provided you with a full recap of my 2022 trading performance.
As much as I hope my self-reflection helps you, there’s only so much you can gather from looking at someone else’s trades…
That’s why, today, I’d like to challenge you to do your own year-end review.
Why should you take the time to evaluate your trades from the past year?
That’s step one.
Step two? Eliminate those errors from your trading.
This is easier said than done, but it’s crucial if you want to become a stock market mastermind.
If you’re honest with yourself about identifying the aspects of your trading that need improvement, then you can systematically work on bettering your performance.
But if you simply keep doing what you’re doing without any hindsight, you’ll keep making the same mistakes — it’s a guarantee.
So, with that in mind, keep reading and I’ll show you how to conduct a year-end trading review like a pro…
Step #1: Go Through Your Trading Journal
The first step is easy…
Go through your trading journal.
Doing this will probably remind you of trades from months ago that you barely even remember now.
It’ll also help you see your overall trajectory from the beginning of the year to the end.
After all, if you aren’t examining your trading journal for ways to improve … Why are you keeping it in the first place?
As you’re going through your trades, ask yourself … Was your performance improving or declining throughout the year?
Step #2: Highlight Important Trades
After re-reading your trades, go back through and highlight the crucial plays that made (or broke) your year.
Think about it … Why were these trades so monumental to your performance this year?
Then, work on maximizing the behavior that led to your best trades while minimizing what led to your worst ones.
And I know it’s tempting, but try to resist the urge to only highlight the trades with the biggest gains and losses.
This is a common mistake, when, in fact, mid-sized trades can sometimes provide great insight into your performance.
Step #3: Identify Your Strengths and Weaknesses
If you’ve been consistent with journaling your trades, you’ll be able to see trends in your successes … and your failures.
Over time you’ll get a better understanding of how different factors affect the ultimate outcomes of your trade decisions.
The end of the year is the perfect time to recap the things you did well (and the things you’d like to improve upon).
Think about the following questions when examining your 2022 performance…
- Were you more successful in swing trading or day trading? Puts or calls?
- How did your choice of strike prices and expiration dates correlate with your performance?
- What stocks did you trade regularly? Did they help (or hurt) your overall gains?
- Was trading at a particular time of day advantageous (or detrimental) to your returns?
Step #4: Improve in the Future
There’s no purpose in evaluating your performance if you’re not gonna use that information to improve in the future…
I know that 2022 was a tough year for most traders (me included).
The Millionaire Strategy ANYONE Can Use
Tim Sykes here…
Twenty-five of my millionaire students have used this exact pattern…
To reap trading profits of $36,125… $68,214… and even $681k all in a single day.
And I KNOW it could potentially do the same for YOU!
But that’s all the more reason to take extra care when looking back on your trades from 2022.
If you don’t know your history, you’re doomed to repeat it. (This is true for your personal trading history as well.)
And even if you had a killer year, you can always sharpen up one area or another.
WARNING: Complacency is the enemy of successful traders. If you get too comfortable, you’re unlikely to ever seriously improve.
There you have it, Evolvers!
Everything you need to conduct a comprehensive review of your 2022 trading performance.
I urge everyone reading this to take the steps I’ve outlined above. You’ll be a better trader for it.