Master Your Trading: Essential Self-Analysis Questions

Today we work on our business, not in it. To be a profitable trader for the long term requires great self analysis and I have developed over time a good questioning reflection of what I need to be aware of during certain times. Take a look below for a revealing analysis that is sure to help your trading business prosper.

BEFORE ANY TRADE

1. Do I have a clear objectively identified edge?
2. Who’s on the other side of this trade?
3. Why would they be in it?
4. What are they looking at?
5. Have I calculated what kind of risk of losses I could sustain?
6. Am I in the flow of the zone? (No perceptions of fear, no euphoric information. If there is no threats, then there is nothing to defend.)
7. Am I getting nervous or panicky? How am I perceiving the current market as a threat? (This will help you weed out perceptions versus reality.)

DAILY

1. If the market reverses today, how am I positioned for protection?
2. Am I being aggressive enough to maximize profit?
3. Can I add to my current positions or take some profits now?
4. If my entry into this trade was yesterday’s close, would I still enter it?

WEEKLY

1. Am I flowing with the market (RRG)? ( am I moving with the sectors and industries that are moving higher)
2. What did I do this week correctly and what can I do better next week?
3. Are my Sectors-Dates to Option Expiration(DTE)-Beta varied enough?
4. Am I diversified in my trade types in my option portfolio?
5. Can I add to my current positions or take some profits this coming week?
6. What trades do I need to add or remove from my option portfolio to maximize my return to where the market is now?

MONTHLY

1. What did I do this month correctly and what can I do better next month?
2. Are my long trades outpacing the annual S&P average returns for this time of year?
3. Are my Sectors-Dates to Option Expiration(DTE)-Beta varied enough?
4. Am I diversified in my trade types in my option portfolio?
5. What trades do I need to add or remove from my option portfolio to maximize my return to where the market is now?

QUARTERLY

1. Am I on target for my annual goals?
2. What did I do this quarter correctly and what can I do better next quarter?
3. Am I in the markets flow state or fighting the trend?
4. What trades do I need to add or remove from my option portfolio to maximize my return to where the market is now?

Enuf said.