At the end of each month, firm traders are encouraged to complete a monthly review of their trading.  While reading firm reviews for April, 5 lessons stood out.  Let’s discuss them.

1.Don’t turn bad days into worse

One developing trader is working on limiting losses on his bad days.  The thought is every extra dollar not lost on his bad days is money he will earn at the end of month, as they take away from profits.

2. Focus on the real trade

One newer trader takes a step back before each trade and understands the bigger picture of the stock.  Where has the stock come from?  Where can it trade to?  Where is the real trade?  As active traders, we can get enveloped with minutia, missing the bigger picture of the stock.  Take a step back and consider the real trade.

3. Have the integrity to hold your winners

This trader, in discussion with Dr. Steenbarger, was struck by the importance of trading his core positions to target.  I have not heard of doing so in ethical terms prior.  That feels like a very effective way to consider the cutting of your best trades early.  You owe it to yourself to hold your best trades to target (realistic target please), as this will give you deserved trading intel on how good you can be.

4. Let process drive performance

Are you getting to bed on time?  Are you reviewing after the trading close?  Are you preparing as you should?  How about that mindfulness training- headspace.com?  It’s the things we do during each day to improve that bring return.  Double down on an A+ for process day.

5. Technology, technology, technology

Filters to help you play more offense with your best trades.  Automated trading models to help you play more offense with your favorite setups.  Trading tools to help you make better trading decisions.  Use technology to help you make more.

I will be talking about these ideas in more detail, in this webinar after the close today.

As always, I welcome your feedback and trading questions- [email protected]

*no relevant positions