Daily Trade Review Process

[CanOz]

I just wanted to post what i've started doing for my daily trade review process now that i'm trading live again...with a reliable connection.

So i've added the daily trade review to my daily homework routine and i'll do it before i structure the market and prepare for the days session.

Basically what i'm trying to do is scalp up a cushion, in order to take larger size trades at my levels.

This week is live practice on CL to build up that cushion.

What i would like to know is if my trade review process is adequate, or if any of the more experienced traders could give me a few tips on what to add or take away.

The review of stats is not included, but thats part of the process. What i'm focusing on here are the individual trade reviews.

The Process

I review and rate (out of 10) each trade in order for:
Concept - what was the idea behind the trade and how do i rate the idea?
Entry quality - did i get in where i should have?
Trade management - Did i manage the trade as well as i could have considering BE, scaling in etc.?
Exit - did i exit the position correctly?
Overall emotions - How did i feel during the trade, relaxed, nervous, etc.
Total Avg. Score

What to do less of or stop doing:
What to start doing or do more of:

Here is an example:

Trade 5
Concept - brk lower thru band, 7 good idea, lots of selling pressure evident on the tape
Entry quality - 9 not too bad, right when the orders started to hit the bid...
Trade management - 2 I exited too early when the price hit the next level, i should have went to BE or waited for buyers....they never appeared.
Exit - 0 exit too early
Overall emotions - 5 a little nervous, it happened quite quickly, scared price would snap back...
Total Avg. Score 4.6

What to do less of or stop doing: Need to stop taking profits too early
What to start doing or do more of: Setup the NT ATM to move me to BE automatically and stick with it unless the buyers jump in and it reverses.

What do others use as a review process? Am i considering everything?

Cheers,


CanOz

Edit: Thanks SKC...i just found this thread as well

 

[Gringotts Bank]

Overall emotions - How did i feel during the trade, relaxed, nervous, etc.

I think you'll find this is where you get the most powerful feedback. It's not to say you ignore the other factors mentioned, but that these factors will all show up here. When I did this, I looked at feelings before, as-I-click, in-trade and after selling.

But you knew I'd say something like that. And you may well ignore it. Everyone else will.

 

[CanOz]

I think you'll find this is where you get the most powerful feedback. It's not to say you ignore the other factors mentioned, but that these factors will all show up here. When I did this, I looked at feelings before, as-I-click, in-trade and after selling.

But you knew I'd say something like that. And you may well ignore it. Everyone else will.

Not at all GB, actually emotions are my weakest link...My techniques to structure the market are quite solid, my ability to read the order flow in markets like the DAX and CL are pretty good now...my problem is that when i enter a trade, i lose the confidence in it right away...i need some wins under my belt to improve this. Emotions are my biggest challenge because it clouds all of my other advantages. So i'm looking to see if my emotions are revealing any improvement or not.

Anyway, thanks for the input GB.

CanOz

 

[Gringotts Bank]

Not at all GB, actually emotions are my weakest link...My techniques to structure the market are quite solid, my ability to read the order flow in markets like the DAX and CL are pretty good now...my problem is that when i enter a trade, i lose the confidence in it right away...i need some wins under my belt to improve this. Emotions are my biggest challenge because it clouds all of my other advantages. So i'm looking to see if my emotions are revealing any improvement or not.

Anyway, thanks for the input GB.

CanOz

See my signature?

Ramp up the fear as big as you can. Make yourself scared on purpose. Really terrify yourself, but do it consciously and voluntarily , rather than as a reaction. Imagine your trade getting smashed by a massive gap, imagine your PC going 'blue screen' at just the wrong moment...and your phone isn't working. Do it when in-trade. Now the chart will look qualitatively different.

 

[CanOz]

See my signature?

Ramp up the fear as big as you can. Make yourself scared on purpose. Really terrify yourself, but do it consciously and voluntarily , rather than as a reaction. Imagine your trade getting smashed by a massive gap, imagine your PC going 'blue screen' at just the wrong moment...and your phone isn't working. Do it when in-trade. Now the chart will look qualitatively different.

I see...so because in reality non of that happens you learn to move on and focus on the situation calmly...

 

[Gringotts Bank]

I see...so because in reality non of that happens you learn to move on and focus on the situation calmly...

No. There's fear of loss (everyone has it to some degree). If you try to not feel it, it will grow and you will get more tense. The more tense you are, the less objectively you will perceive all the information available to you.

If a person is terrified of dogs, he will find himself jumping at shadows when he goes for a walk outside. He can try to calm himself, but that's only partially effective; as soon as a dog appears, he acts irrationally. Even if it's a friendly golden retriever who wouldn't hurt a fly, he can't process that information correctly. Anything with 4 legs and a tail is a threat. His rational mind will tell you it's ridiculous to fear such a dog, but he still fears it anyway. He can't help it.

If you tell him to tense up as much as possible and create the fear himself, then there's an element of acceptance built into that psychological manoeuver. Any emotion that is accepted tends to disappear quite quickly. Objectivity returns, and perception is sharp and accurate. The retriever is very likely to be a non-threat (hold your position). A doberman running and barking and off it's leash is a potential threat, and should be treated appropriately (sell).

 

[CanOz]

No. There's fear of loss (everyone has it to some degree). If you try to not feel it, it will grow and you will get more tense. The more tense you are, the less objectively you will perceive all the information available to you.

If a person is terrified of dogs, he will find himself jumping at shadows when he goes for a walk outside. He can try to calm himself, but that's only partially effective; as soon as a dog appears, he acts irrationally. Even if it's a friendly golden retriever who wouldn't hurt a fly, he can't process that information correctly. Anything with 4 legs and a tail is a threat. His rational mind will tell you it's ridiculous to fear such a dog, but he still fears it anyway. He can't help it.

If you tell him to tense up as much as possible and create the fear himself, then there's an element of acceptance built into that psychological manoeuver. Any emotion that is accepted tends to disappear quite quickly. Objectivity returns, and perception is sharp and accurate. The retriever is very likely to be a non-threat (hold your position). A doberman running and barking and off it's leash is a potential threat, and should be treated appropriately (sell).

Ah, i understand...makes sense. I think i could use that GB, thanks!

CanOz

 

[Trembling Hand]

What i would like to know is if my trade review process is adequate, or if any of the more experienced traders could give me a few tips on what to add or take away.

You sure you will be able to find any more so than yourself?

 

[CanOz]

You sure you will be able to find any more so than yourself?

I have little experience in intra-day trading, relative to yourself and the other Prop/Ex-Prop guys. Was hoping you all could give me a few tips on the review process...

CanOz

 

[Trembling Hand]

I have little experience in intra-day trading, relative to yourself and the other Prop/Ex-Prop guys. Was hoping you all could give me a few tips on the review process...

CanOz

Well then I reckon the review process is useless if firstly you haven't got a list - a short one - on things you are working on. Actualy measurable and clearly quantifiable outcomes. Fix 1 thing a week/month. Keep on moving on....


You cannot work to fix being,

a little nervous

Unless you accept that being deluded is a good way to go. IMO.

 

[CanOz]

Well then I reckon the review process is useless if firstly you haven't got a list - a short one - on things you are working on. Actualy measurable and clearly quantifiable outcomes. Fix 1 thing a week/month. Keep on moving on....


You cannot work to fix being,

Unless you accept that being deluded is a good way to go. IMO.

I'm sorry, but can you rephrase this? What are you getting at, i don't understand...

 

[Trembling Hand]

I'm sorry, but can you rephrase this? What are you getting at, i don't understand...

haha - which bit, first bit or the bit about being nervous or both?

 

[CanOz]

haha - which bit, first bit or the bit about being nervous or both?

Well both...but to clarify...

I do currently have a few core issues that I'm working on to help me control my emotions during trading. This is an issue you may not even understand, you may not be an emotional person, i don't know. For me, i have an issue when my hard earned money (20 years of savings) is on the line, however, the emotions are mitigated once i have a "cushion" to work with. So yes, your right, i don't need a review process to catch that one, its there and always has been with Intra-day discretionary trading. The live trading, scalping to build an account cushion, is meant to help me over come this....

what does this mean?

Unless you accept that being deluded is a good way to go. IMO.

 

[waza1960]

Well here's my worth..................

Canoz with your market knowledge I think you will achieve good entries more often than not.

Seeing as I consider entries as least important and MM imperative that's where I would concentrate.

What to start doing or do more of: Setup the NT ATM to move me to BE automatically and stick with it unless the buyers jump in and it reverses

That's exactly what I would be doing
If you setup say the ATM to help structure Money management/Trade management this will give you support until you gain more confidence and perhaps you could include this in the trade review.
I would also list your position size and make it progressive/week.
If you follow the theory of scalping then increasing size how do you regulate this?
If you concentrate on MM/TM then the emotions aren't as relevant IMO.

 

[CanOz]

Well here's my worth..................

Canoz with your market knowledge I think you will achieve good entries more often than not.

Seeing as I consider entries as least important and MM imperative that's where I would concentrate.

That's exactly what I would be doing
If you setup say the ATM to help structure Money management/Trade management this will give you support until you gain more confidence and perhaps you could include this in the trade review.
I would also list your position size and make it progressive/week.
If you follow the theory of scalping then increasing size how do you regulate this?
If you concentrate on MM/TM then the emotions aren't as relevant IMO.

Your is always welcomes Waza

I'm scalping with 1 contract only to enter, but if i see something too good to pass up in the book then I'll add another. For example, last night i was long once contract, but i added another as it took out a number, you could just see it was going to pop through...

CanOz

 

[Trembling Hand]

Well both...but to clarify...

I do currently have a few core issues that I'm working on to help me control my emotions during trading. This is an issue you may not even understand, you may not be an emotional person, i don't know. For me, i have an issue when my hard earned money (20 years of savings) is on the line, however, the emotions are mitigated once i have a "cushion" to work with. So yes, your right, i don't need a review process to catch that one, its there and always has been with Intra-day discretionary trading. The live trading, scalping to build an account cushion, is meant to help me over come this....

what does this mean?

This is the whole scam with the mind game and trading nonsense.

You are taking a chance on something that has an uncertain outcome while having a considerable want to have it go your way. (not just the next trade but also the outcome of the next 1000 trades)

You SHOULD be nervous. You are putting "hard earned money (20 years of savings).. on the line". Not only that your pride, self-worth and pressure of family, friends and now this place. This is why you should be nervous. You don't know if you are profitable. No amount of mind games and discipline is going to get away from that fact. If you can take a trade and not be nervous you are either an abnormal human being (brain damaged) or successfully deluding yourself to FACTS.

You cannot work on just "not being nervous" in a trade as a singular goal. Again unless one can BS yourself away from uncertainty.

What you can do is after the sim phase (which you have done) is start very small so at least the $ outcome will not hurt you. Then its a matter of concentrating on taking the 2-3 setups and exits you think work(from simming) over and over until you have proven to yourself YOU ARE PROFITABLE. Magic, all of a sudden mild nerves are just a small part of the game. Nerves are a symptoms not a cause. By all means manage them but to rid yourself of them you must cure the cause - 3 months of profitable trading (or even just near breakeven) will do it. Trust me.

From this small live trades you will start to see the same old stats turn up. Basically it will be a need to stretch the avg winning amount. And with disc trading - control/stop the frustrated crap/out of sync rubbish trades. If you just print out the trades at the end of the day what you need to do will stand out like dogs balls,
"yes good entry, well anticipated move, my kinda setup etc, bailed out too soon, didn't even take much heat, Blah blah". without knowing what you are trying to do but it will all be there if you have an edge. Just fix a few things at a time.

So your review would actually be a score of how you executed your list of fixes. Given that your trade ideas and market read have an edge. If you just start scoring everything that pops up each day you will have a list of crap so large you will not be able correct the next little step/skill which needs to be perfected. As such make no progress and stay nervous and frustrated then that will be the common theme (symptom) and you'll start thinking that trading is a mind game.

I don't think it is - its a game of laying down Myelin.

Of course others will disagree.

 

[Trembling Hand]

I do currently have a few core issues that I'm working on to help me control my emotions during trading. This is an issue you may not even understand, you may not be an emotional person,

Err just to add, I don't know if anyone has noticed? But I'm a very flawed individual. Highly emotional, grumpy, short tempered, overly competitive, arrogant, bitchy, erratic........ I'm sure some others could ad a few more emotions/personality flaws.

But it doesn't stop skill development. (probably helps it)



Fire up dude!

 

[tech/a]

Don't disagree.(With any of the last 2 posts)

In fact you stop reading everything you can put your hands on.
You forget about theory's.
You know exactly what to do and when to do it.
You don't review anything.--You don't have to.

When you know how to trade you know how to trade.

You just do business everyday.

 

[CanOz]

Don't disagree.(With any of the last 2 posts)

In fact you stop reading everything you can put your hands on.
You forget about theory's.
You know exactly what to do and when to do it.
You don't review anything.--You don't have to.

When you know how to trade you know how to trade.

You just do business everyday.

Not sure exactly where you're going with this Tech/A...? Are you saying that professional traders don't review thier trades to try and improve? They just "know" how to trade? So they've always known how to trade?

Perhaps you could expand a little?

CanOz
Still taking in what you posted TH....thanks for taking the time to post that.

 

[CanOz]

. What you can do is after the sim phase (which you have done) is start very small so at least the $ outcome will not hurt you. Then its a matter of concentrating on taking the 2-3 setups and exits you think work(from simming) over and over until you have proven to yourself YOU ARE PROFITABLE. Magic, all of a sudden mild nerves are just a small part of the game. Nerves are a symptoms not a cause. By all means manage them but to rid yourself of them you must cure the cause - 3 months of profitable trading (or even just near breakeven) will do it. Trust me.

From this small live trades you will start to see the same old stats turn up. Basically it will be a need to stretch the avg winning amount. And with disc trading - control/stop the frustrated crap/out of sync rubbish trades. If you just print out the trades at the end of the day what you need to do will stand out like dogs balls,
"yes good entry, well anticipated move, my kinda setup etc, bailed out too soon, didn't even take much heat, Blah blah". without knowing what you are trying to do but it will all be there if you have an edge. Just fix a few things at a time.

Thanks allot Trembling Hand, probably the best advice given to intraday trainees to date....

Really appreciate that.

CanOz