I’ve always operated under the mantra of keeping the bat on the ball because I’m constantly wary of missing out on a winning trade. Recently, I decided to delve into my trading data and noticed a pattern—when I hit a losing streak, it often stretches across numerous trades.
This led me to realize my trading process lacks certain “don’t trade” filters that could significantly boost my profitability. Not every appealing setup is worth pursuing; sometimes, it’s better to let them pass.
To be clear, this isn’t about dodging losing trades altogether—that’s an impossible task. It’s about pinpointing and steering clear of sub-par trades. Once you eliminate those, the trading portfolio looks markedly improved.
### Reviewing Your Wins and Losses
Just take a glance at the chart displaying my wins and losses. You’ll see that the sub-par trades are bunched up together, amplified by the impact of correlation.
The core lesson of this experience isn’t solely about identifying sub-par trades. It underscores the vital role of maintaining a trading journal and reflecting on what your data reveals about your practices. Leveraging these insights can genuinely transform and refine your approach.
As the year winds down, I’m embarking on my annual trading performance review. I’ll be focusing on how to recognize these sub-par trades and devise strategies to sidestep them in the future.
In essence, maintaining a trading journal and reflecting on your data can significantly enhance your trading practices.
[Image: Njabulo Kelvin Nsibande]
Traders possess a unique trait: they’re relentlessly driven to compete with themselves. They view every result as a learning opportunity and confront their failures and successes with brutal honesty. They’re constantly questing for knowledge, seldom resting until their questions are answered, and typically aren’t content with just a single solution.
Njabulo Nsibande is the founder of Village Trader and the Sakha Ingcebo investment club. His fascination with trading began back in 2016 amidst a wave of Instagram ‘fx traders.’
Connect with him on Twitter: @njabulo_goje.
