The new year 2019 is almost upon us! For traders, this means that we need to look deep into our trading plan and analyse what went right and what went wrong. Although every trader’s measure of profitability depends on various factors like his/her risk appetite, capital and risk management, it all comes down to how well they have managed to stay profitable throughout the volatile year of 2018.
To welcome a profitable 2019, it is time to ask yourself tough questions and determine what went right and what went wrong. In this article, we give you a list of questions you can ask yourself to review your trading plan.
- Which time frame and chart pattern works best for your strategy?
- If you are using indicators, how well do they work for you? Should you alter their default parameters for more profits?
- Should you adjust your target percentage and stoploss?
- Does your strategy work better in range bound or trending markets?
- Which news events triggers a reaction from the market? And how? During what kind of news events should you trade and which ones should you miss?
- Is there a pattern when it comes to which days of the week or weeks of the month you are more profitable?
The purpose of this review is to ultimately give you insights about your strategy based on which you can improve the trading plans for the year to come. So spend some time to thoroughly review your trading plans. Happy trading!