Chuck Hughes Avoiding a Scam

A learning process is to analyze your own trading approach and the results it generates. If your method of trading is producing consistent profits, then there may be no need to tweak it. But even during times of good trading, there are ways to improve your returns. If your method is giving you mixed results, then you might want to take a closer look.

When I first started trading, I wrote down every single trade, even if it was just a scalp. My entry time and price, my exit time and price, number of shares, and gain or loss on the trade were all recorded on a simple grid sheet. Writing my trades gave me a good record of not only my trades, but the context in which the trades were placed. If losing days were a result of overtrading or pressing when I was down, the evidence was right before me.

At the end of the month, I would sit down and review the sheets and see what I could learn. Calculating my win/loss percentage, the size of my average winners and losers, and of course my profit or loss gave me good numbers to evaluate. If my win/loss ratio was unsatisfactory, then I was probably taking the wrong kinds of trades. If my average winner was not significantly larger than my average loser, then my discipline (cutting losers quickly) needed adjustment. Staying on top of these numbers can really shed light on areas that need improvement, and I would certainly consider this process to be an important part of the self-education process. I still do this in times of struggle.

Finally, stay in touch with other traders. It can be very helpful to stay aware of what trading styles are working or not working. Some of my best trading stretches were a result of knowing certain approaches were just not working. Other traders are a great resource for sharing ideas, and the cheapest way to learn is from another’s mistakes.

Trading is my job, and I realize that over time, I will likely get out of it what I put into it. I am very willing to apply myself in order to continue learning about my tendencies and the market, and I know as time goes on it will continue to pay me dividends. I have never regretted investing time in learning how to improve. Writing a swing trading newsletter also helps to keep me on my toes.

If you want to achieve more in your trading, commit to educating yourself with current industry events, the continual evaluation of your method, and the experience of others. I think you will discover more ways to profit!

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