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Once you have kept track of your trades over a period of several weeks or more, it is important to review the journal entries. This will allow you to learn which moves were beneficial and which were mistakes and determine how you can improve future trades.

So how do you do it?

It’s pretty simple:

Ø Find what works and keep doing it

Ø Find out what doesn’t work and stop doing it.

Here’s a sample of the types of questions you should be asking yourself when you review your journal:

● Which chart patterns or technical indicators work out best for you? Which do not?

● How can you adjust your indicators to get you in trades earlier, or help you avoid whipsaws and fakeouts?

● Are you closing winning trades too early? Is it that you need to adjust your profit targets or are you afraid of losing your unrealized gains?

● Do you hold onto losing trades longer than you should? How can you improve your stop-loss processes?

● How often do you follow your trading plans? Of the ones you do follow, have you been profitable?

● What trade setup did you miss, or not take, and why? Was it a legitimate signal or setup according to my method or system?

● What could you have done differently to make prevent/reduce this loss or maximize your gain?

● Are you winning more on trades with multiple lots or single lots?