Prop Training Section 5 - Reviewing your Important Trades

The definition of insanity is doing the same thing over and over again and expecting different results.Albert Einstein 

Review Your Important Trades

Good traders constantly strive to improve their performance. Here is an important technique to help you improve. Replay important trades in your head. Think through your important trades. Do this when the market slows. Do this multiple times during the trading day. Make notes of as much important information as you can remember and make sense of the trade. Replay the significant trades that occur during the day. Was there a spot where you could have added more size, while not significantly increasing your risk? Did you sell too early? What made the stock go up? Was there an event that precipitated the move? Did you assume too little risk? Or did you assume too much risk? Was there a catalyst for the upmove? Replay the trade and construct improvements for the next similar trade.

Professional coaches frequently review game tape. They review their team's performance so that they can improve their strengths and eliminate their errors. Professional athletes do this as well. They concentrate on improving their technique. A pitcher might view tape to see if he is tipping his pitches, or if his arm angle is consistent. If he spots a mistake, he works to correct it. Also, talk to other traders on our desk that were trading your stock(s). Ask for their thoughts. You will get better as you gain experience, but you will get much better if you improve your technique while you are gaining experience.

Print out your trades. Were you disciplined? Did you execute on your stops? Did you do worse in a stock than you thought? Are you trading some stocks better than others? Are there some stocks that you just don’t trade well?

At the end of the day, ask Steve for his thoughts about your trades. Is there something you still don’t understand? Find us and talk to us about your trades. We can offer valuable insight.

Get into the habit of evaluating your more important trades during the day. What was the catalyst for the move? Think, think, and think. Replay your trades. Replay an important trade in your head and search for changes that you can make to improve your results.

SUMMARY

• Replay your important trades during the day
• What was the catalyst for the move?
• Write down as much as you can remember about the play
• Find others on our desk who traded your stock(s) and learn from them
• How could you have traded your stock(s) better?
• Print our your trades
• Ask us for help
• Think, think, think