In our last post, we walked through the three phases of testing a trading plan — from kick-the-tires to measured mode to review.
Now comes the part that truly separates dabblers from developing traders:
How you track your trades determines how quickly you establish your winning approach..
This step is often skipped. Or done halfway. But it’s where the insights live. It’s how raw experience becomes refined skill.
You Need a Trading Journal
This is not just a spreadsheet showing where you entered and exit.
You need a space where you can actually jot your thoughts down— ideally while the trade is unfolding.. That’s when your memory is sharpest and your insights are clearest.
Here’s what to include in every entry:
- Why you entered the market
- What you saw in the setup
- Any emotions that came up
- How the trade played out
- What you’d do the same or differently next time
That kind of journaling turns data into wisdom.
I share a detailed journaling template with students when we build their trading plans — and even a simple doc works, if you commit to it.
Mindset Traps to Watch For
Even with a great journal, there are two habits that can sabotage your testing phase:
⚠️ FOMO
Advanced traders especially struggle here. They want to “hurry up and go live.” They see the markets moving and feel like they’re missing out.
But skipping or rushing your journal entries often leads to the very mistakes that could’ve been avoided.
Testing exists to protect your capital — and your confidence.
⚠️ Over-Tweaking
This is when you start editing your plan with every trade — adjusting entry strategies, changing targets, swapping out indicators.
If you’re doing that, you’re not testing a plan.
You’re just reacting to the markets.
You want to be the boxer, proactively throwing powerful swings. Not the punching bag, gyrating around reacting to outside forces.
What I always tell students:
Make observations. Take notes. But don’t change the plan until the current phase of testing is complete.
A real plan has structure. It’s tested and refined over time — not on the fly.
Backtesting Can’t Test You
Backtesting and forward testing can be helpful — especially if your strategy is fully automated.
They’re useful for ironing out logistics or catching obvious flaws.
But here’s the part most traders overlook:
Neither method can simulate what you will do in the moment.
Backtesting shows what could’ve happened.
Forward testing shows what might happen.
But unless your trading system runs 100% without you, these testing approaches miss some of the most important variables:
- Your decision-making
- Your hesitation
- Your mindset under pressure
That’s why I teach a manual-first approach.
Use software tools to spot setup issues or support calculations — but don’t mistake that for proof.
The only way to truly test your plan is by trading it in real time, tracking your decisions, and reviewing them with clarity.
That’s where confidence is built.
What It Looks Like When a Plan Is Proven
One of the most common questions I get is:
“How do I know when I’m ready to go live?”
The truth? It’s not one-size-fits-all.
And while I reserve specific benchmarks and evaluation methods for my mentorship students, I’ll say this:
You’ll know your plan is proven when the data supports it — and your execution feels consistent and grounded.
Your numbers will show alignment with expectations.
Your journal will reveal discernable patterns.
Your choices will feel more intentional than emotional.
That’s when it’s time to step forward — with clarity, not guesswork.
Build Proof. Build Confidence.
Testing your plan isn’t about jumping through hoops.
It’s about protecting your account. Strengthening your mindset. And building the kind of clarity that turns into consistency.
Most traders skip this phase.
But if you take it seriously — if you show up with structure, honesty, and patience — you’ll give yourself something most traders never earn:
Confidence you can count on.
This is where your growth as a trader really begins!
~Hima
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