Performance Analysis

At the end of every month I take a look at my journal entries and analyse my trading performance. This month my performance was poor. The main reason was that I failed to sell short. I noted in my journal both last week and the week before that selling short was clearly the trade but failed to do so. The funny thing is that I failed this week as well although I did make a few short trades. This month I made a total of 5 shorts having only two of them make money.
Looking at the graphs of the cumulative┬átrades in both December 2009 and January this year, the damage wasn’t that bad thanks to the fact that I lowered my initial┬átargets and sold partially for profit. I look at both months as well because the software doesn’t count trades that initiated the month before nor does it count trades where I still have partial positions.
The trade stats for January show that my R/R was good 3:1 as seen on my largest winner / largest loser. They also show that over trading remains my biggest problem. The average days I let winning trades run remained the same, but I let losers run longer mainly due to the sideways and whipsaw action this month that eventually culminated in selling and taking my stops out.

Now I am nearly all in cash (95%) and keeping trades to an intraday or short time targets.

About Stock Trade Journal

The information in this blog is not investment advice. Please consult a financial advisor before investing. I have been trading stock since the 1990's and survived the .com crash. I am developing software applications to help me trade better and now I am making them available to help other traders. This blog is also a way to share my experiences and observations in the market.
This entry was posted in General Info, Trade Analysis, Trade Entries, Trade Planning, What to Write in a Journal and tagged , , , , . Bookmark the permalink.

One Response to Performance Analysis

  1. Pingback: Risk Management Pt 2 « Stocktradejournal's Blog

Leave a Reply

Your email address will not be published.