Calendar markers are important reference points.  Some evaluate their trades monthly, weekly or even daily using a journal.  But, they do not define our actions rather they are a time to step back and evaluate ourselves, our actions and inaction.  The challenge is can we change our behavior to become better.  As traders, we are always looking to improve and gain an edge, and I like to do a thorough evaluation of my entire trading plan/system around this time of year.  Perhaps I will be able to find something that worked and continue to use it, further find something that I did not do right and be able to identify and change.  Below is a laundry list of items that I review at year end to help prepare me for the next 12 months ahead.

  1. How did my portfolio(s) perform last year?  This is the first measuring stick but does not tell the entire story of the year.
  2. Were there any big trades that moved the portfolio(s) in a big way, up or down?  In 2013, the one standout for me was ONXX, up nearly 1500% in about a week back in late June on a buyout offer from Amgen.  This was the best single gainer I have had in about five  years.  Timing was great, execution was even better.
  3. Did I miss out on any big trades due to something I missed?  I keep a journal and write down notes each trading day.  It is now when I will look back and study my notes to find out where I missed out and why.
  4. Events outside of trading can certainly create mind-bending situations.  Further, they can be big distractions and draw my attention away from the trade.
  5. How is my health?  Am I of sound mind and body?  You may laugh at this but taking a regular pulse of your health and recognizing the good/bad can be quite helpful.
  6. How is my mind?  Are there other things that distract me during the day?  Can these be controlled so I can always be at my best.
  7. What new things did I learn that had an impact on my trading results?  I make it a point to read 3-4 books annually about trading, technicals and psychology.

To look ahead, the one question I ask is this:  ‘Will this be a good year for stocks?’.  To help me answer that question I have to know where the Fed is positioned.