Nikita (SEBI RA)
10 Sep • 11:13 PM · SEBI-Registered Analyst
“Why Trade Results Should Be Reviewed Objectively”
A winning trade and a losing trade can both contain valuable information. Looking only at the financial result does not tell you whether the trade was executed correctly according to your process.
After closing a position, review the original setup, entry location, risk management, position size and exit decision. Ask whether the trade followed the predefined rules or whether emotions influenced any part of the execution. A profitable trade that violated the plan may still represent poor execution, while a losing trade that followed the plan can still be considered a valid decision.
Reviewing trades consistently can help identify repeated behaviors. Over time, traders can discover which conditions support their strategy and which mistakes continue to reduce execution quality.
The objective is not to judge every trade by its outcome. The objective is to improve the quality and consistency of the decision-making process.
Learning:
Evaluate the process behind the trade, not just whether the trade made or lost money.


