Whether you're a daytrader on futures charts, a swing trader on stocks, or anything in between, I IMPLORE YOU to review your trades…immediately.
–> Immediately after your day trading session is over (ie when you've stopped trading, not necessarily when the market closes)
–> Immediately after a closed swing trade
–> Essentially right after the trade is complement so your analytical memory is still FRESH
Here's an example….
PHASE 1 – RECORD WHAT HAPPENED
To enlarge chart, click on image and it will open in a new browser tab
On the morning shown in the chart above, I day traded E-mini S&P 500 futures on a 15 second chart (in conjunction with 3-min and 60-min for analysis/levels). It was not a fabulous day, nor a terrible day. Overall just over $100 gains.
I could have just said “oh well it was a win for the day” and kept moving along with my day. But I still took the time to revisit EVERY SINGLE trade after they had all happened to help make sure that I am aware of what I could have prevented/controlled (or not).
So here's the cool bit – after I completed my out loud, video-recorded review of my trades, I noticed that there were a few simple entries and exits (totally per my trading plan and teachings to you) that would have been the optimal trades to take THAT WERE STILL REALISTIC. That last bit is SUPER important – it's not about buying right at the low tick or selling right at the high every time, it's about getting that chunk in between…
PHASE 2 – “TURN BACK TIME”
So I went back in on a blank chart of that same 15-second timeframe (kept RSI Power Zones on there, that's an always for me!). Then I used simple line segments (green for buying, red for selling) and the text annotation tool to describe and label what the “optimal” trading would have been for the day. Here's the resulting screen capture:
To enlarge chart, click on image and it will open in a new browser tab
And sure enough it would have yielded MUCH more overall profit. I currently trade 2 contracts within an initial 8 point stop (4 per contract), and take the first contract off at 2 points ($100) profit and let the other ride until out on a trailing stop. So had I taken the trades per the “optimal” chart markup I would have made well over $1,000 during that same trading morning.
NOTE This recommended practice is not to make you feel bad or beat yourself up for mistakes or missed opportunities. It's to turn EVERY SINGLE trading session into a learning opportunity so that you reach the ultimate goal, which is the ability to generate consistent profits in the long-term.
You will still have losing trades, you will still even having losing days. The key is go have bigger and more frequent wins that vastly outweigh the losses.
So in whatever manner works for you – video capture, note taking, marking up charts – I strongly recommend that you Review Your Trades…Immediately!
