A terrific exercise for traders is The Weekend Review.  I received an example from one of our traders and thought it could offer some ideas for readers interested in starting or improving their Weekend Review.

Over the weekend I went over my results for February. Lack of discipline in hitting out of my stocks, being stubborn, and breaking my own trading rules are what resulted in me having a poor and mediocre month.

The month started out well in terms of me having a few good days. I noticed a pattern after such days where my rips started to slowly get out of control. I was comfortable in the thinking that my bad trades would be offset with good trades that I could potentially have later in the day, week, etc. This type of thinking…in this business/trading, is a cancer and has to be removed and eliminated before it can wreck major havoc in my career let alone the foundation I’m currently building. I was comfortable and nothing great comes from this mental state.

My bias also had an impact on my results. I was going long stocks at the top and trying to fade trades not just one time but 2 or 3 times before finally getting the picture and checking myself before more damage was done. I was buying weak stocks and selling strong stocks. I did not adjust my plan to reflect a stocks price action. This hurt my game a lot last month.

Looking at my numbers humbled me. Ego has no business in this business and discipline has everything to do with becoming a successful trader. One very important factor I realized related to my time spent as a retail broker. Most of the trades I entered on behalf of clients were entered immediately. This mental wiring has to go. It has no room in my routine.

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This is what I’m going to do this week and going forward to improve:

Im checking my ego at the door.

Taking it step by step, 1 trade 1 play at a time.

Im keeping sticky notes on my desk to hit out of losers and maintain self control.

Im setting my max size to 200 shares.

Im hitting out of my stocks when they go against me.

I’m focusing on strong stocks whose levels I can get long from and/or add too

”  ” weak stocks whose levels I can get short from and/or add too.

Reading an chapter/excerpt from a peak performance book every night.

Create more if/then statements, ask more questions and train my mind to think in this way.

Aside from going over my stats I read and watched the following which was extemely helpful in understanding my slump:

* I read chapters 7 to 9 in One Good Trade and page 254: How to End a Trading Slump
* Emotional control in The Psychology of Risk by Ari Kiev.
* I listened to Mikes lecture on eliminating that which does not work on the firms training site.
* Steve’s Risk Seminar on the firms training site.
* Terry Orlick, PhD:  In Pursuit of Excellence, How to Win in Sport and Life through Mental Training, Part IV Living Excellence Ch 19- Learning from Setbacks, Ch. 20 Preventing Overload and Embacing Life, Ch. 21 From Hero to Zero and Back and Ch 22. Choosing Self Direction.   http://www.zoneofexcellence.ca/index.html

What is most striking about this review is the mindset.  A disappointing last week was last week.  Here are the steps the trader will take next week to improve his performance which to the trader is improvable.

Also notice the creativity with his improvement plan.  He is not just doing what our training program would suggest but he is finding other ways that make sense to him to further improve.

Finally the trader understands what is most important for him to improve his performance.  He singles out the plays that work best for him and is feeding his mind with the thoughts to stick with only them.

Too many believe that becoming a great trader is about inventing some brilliant new trading play.  Trading is mostly about doing the thousand little things, like The Weekend Review, which truly makes the different between whether you underperform or thrive as a trader.  Create the review that makes the most sense to you.  Perhaps some of the ideas above can help.

Mike Bellafiore

Author, One Good Trade