If you have been following me for some time then you know I’m all about learning, self-improvement and advancement in trading. Eyes wide open, ears perked up. Those who choose to move forward and become better are those who see the opportunity to learn at every turn, be it an obstacle or a wall. We gain knowledge from each experience good or bad, we learn about ourselves and others.
How we react to situations and events is a sign of how far we have in our learning. Trading is not easy, it is not a game of perfect – but with some self-awareness, humility and an open mind we can always become better.
As we wind up the year it is time for two activities: Reflect upon the year, see what worked and what didn’t work and analyze behavior under certain conditions. In analyzing what worked and didn’t work is a fairly straight forward process. I look at my trades which won and lost, how my profit/loss moved around and whether I was in the right trades at the right time. I can make adjustments around the edges – take some more time with my option trades, a less riskier trade or something less complicated.
My behavior and reaction in good/bad times is where it is more challenging, but I turn to my trading journal to learn about my own emotions and trades. For instance, how was I feeling during the brexit and election times, when volatility was starting to soar? Was I fearful and nervous, or bold and ready to step in? It is in times of market stress when we find ourselves either at our best or worst, and having an understanding of our own self is the start of improvement.
By learning and understanding more about yourself is part of growing, becoming better at trading and handling challenging situations.
