5 min
Step 6 — Analyze The Trade
Once your trade has been closed, it is time to dive into the analysis. Thankfully, you have documented all the steps from the initial trend analysis until the trade setup.
After adding the actual information about your trade (win or loss, closing price, closing reason, duration, etc.), you should analyze it in detail.
The best way to do this is to use our Trade Analysis template.
When analyzing a single trade, you want to discover the quick wins—the obvious positive or negative aspects from which you can derive actions directly.
For example, you opened a trade on a day with a major FED announcement. The market went wild once the announcement triggered your stop loss. PERFECT! That’s an excellent learning. All you have to do is derive an action that will help you avoid similar trades in the future.
Finally, another important aspect is also to document your analysis results. Ultimately, the entire documentation will be part of a high-level analysis based on all your trades. During these analyses, you want to discover patterns and high-level issues. But, well, this will be part of another tutorial.
Checklist & Material
Checklist
Analysis Completed? | |
Action Items Documented? | |
Documentation Completed? |
Documentation Template
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