Retrospective on Trade

Looking back on events that have previously occurred is referred to as retrospective.

It may be tempting to ring up your buddies for happy hour, shoot shots of Patrón, and splurge on bottles of Dom Pérignon when you've completed trading, but it's critical that you assess how your trade went, win or lose.

You'll want to look back over the entire process to see what went right and what went wrong.

Here are a few questions to ponder:

What was the outcome of your trade？

• Was the position size appropriate for the risk and return situations, or was it too large？ Is it too small？

• Could you have done a better job if you had entered at a higher level？

• What strategies did you employ to optimize your entry timing？

• Were you patient enough, or did you rush in, believing you wouldn't get another opportunity？

• Was your take profit a realistic figure or an imagination？

• Did the market respect your stop-loss thresholds, such as halting short of them, or did prices just fly right past them？

• What news or event catalysts influenced the market's behavior？

Use the information to fine-tune the size of your position, entrance level, and order placement in the future.

How well did you run the business when it was up and running？

• Were you able to keep a close eye on the market while your deal was open？ If so, how would you go about doing it？ Why not, if not？ The answers to these questions will disclose a great deal about how much time and effort you can put into your trading.

• Did you make any changes to your trade strategy along the way？

• Did you make any changes to your stop-loss order to protect your profits？

• Is it true that you only made a partial profit？

• Did you follow your trading plan to the letter, or did the market surprise you in some way？

You'll discover what influence your emotions may have played and how disciplined a trader you are based on your responses.

While you may want to talk to your friends about your feelings, emotions, and thoughts, it's best to write them down here.

You're probably already boring them to death. They don't want to hear about your complaints.

What are some areas where you can improve, and what particular steps will you take to do so？

This is your chance to improve your trading skills.

Do not just write general confessions such as “I need to keep my winners longer,” “I need to shed my losses sooner,” or “I need to be more disciplined.” These are completely useless on their own.

Determine the ACTIONS YOU WILL TAKE TO IMPROVE.

• How will you keep your winners for a longer period of time？

• Will you make an effort to select a more profitable target？

• Will you learn not to panic at the first sign of a drop in your unrealized profits？

In this evaluation procedure, there are no right or incorrect answers.

Just be as honest with yourself as possible.

Also, be VERY SPECIFIC.

You will not improve as a forex trader if you do not do so.

Did you follow your trading plan when you made your trade？

TAKE THIS QUESTION SERIOUSLY.

If you are not consistently completing trades according to your plan, you either have a major lack of self-discipline or your Trading Plan is flawed.

In any case, you have a major problem that must be resolved immediately!