How to Conduct a Post-Analysis and Improve as a Trader

In this week’s webinar, product coach Scott Lehtonen discussed the finer points of conducting a post-analysis on the previous year’s action and trades.

Post-analysis helps you identify where you made good decisions and where you perhaps let your emotions rule the day. By understanding your strengths and weaknesses as a trader, you have a much better chance of improving your outcomes by setting new rules  that will steer you out of old bad habits.

Start by printing out your three biggest winners and your three biggest losers of the year, and mark down specific buy and sell points, volume, Relative Strength at the time of the breakout, earnings, and any other specifics of the trade you can remember. Use a blue pen to identify any positives about the trade and a red pen to mark any faults or mistakes. Try to find specific areas where you can improve. If I had bought X at the breakout, I would have improved my outcome by Y. If I had taken some profit when I was up 20%, I wouldn’t have given back X.

It is a good idea to also print out a chart of the market indices so you can compare your individual trades against the action in the general market at the time. This makes it easy to determine if you were in sync with the predominant trend, or if you were swimming upstream against it. Simple market direction analysis is one many traders ignore or forget to include in their decision-making.

If you missed it, you may watch our webinar “How to Conduct a Post-Analysis” here. As always, we are here to answer any questions: reach us at (800) 424-9033 or at reachus@marketsmith.com.

Best returns,

George Orlando,  Marketsmith Team