Tips on Creating an End-of-Year Trading Evaluation

Approaching the end of the year, traders often find themselves wondering what steps to take. This article provides tips on what to do in trading as the year draws to a close, including minimizing risk, conducting a trading evaluation, and setting New Year's resolutions.

1. Minimize Trading Risks:

Avoid Opening New Positions:

• Long Holidays and Reduced Price Movements: Avoid opening new positions due to long holidays in the forex market and reduced price movements. It's better to close all trading positions and become active again at the beginning of the new year.

Reset Stop Loss:

• Minimize Risks: If you still want to open positions, reset your stop loss to minimize risks. However, note that trading opportunities may be limited due to holidays and low market activity.

2. Conduct a Trading Evaluation:

Review Your Trading Journal:

• Importance of Evaluation: Use the available time to review your trading journal. Evaluating trading performance can provide valuable lessons, identify shortcomings, errors, and psychological factors affecting trading execution.

Use Detailed Statements:

• In-depth Analysis: Utilize detailed statements from the MT4 platform to examine your trading journey in detail. Consider critical questions to guide your trading evaluation:
• Have there been improvements in my abilities as a trader?
• What aspects need to be improved or enhanced?
• Are there any mistakes to avoid in the future?
• How effective are market sentiment measurements and trading rules?
• Am I comfortable with the current trading system, or do I need to explore other systems?

Honesty in Evaluation:

• Importance of Honesty: Be honest in self-evaluation. If there are still many mistakes or deviations from the rules, acknowledge and record them for future improvement.

3. Set New Year's Resolutions:

Prioritize Trading Processes:

• Focus on Processes: When setting New Year's resolutions, prioritize trading processes over simply setting profit targets. Control risks and strive to improve the quality of trading execution.

Create Simple and Realistic Plans:

• Simple and Realistic: Set simple and realistic goals. For example, limit daily/weekly/monthly losses, focus on specific trading sessions, and create a routine schedule to prepare chart setups and read fundamental data.

Commitment to Realizing Resolutions:

• Commitment to Plans: Plans are only effective if executed. Commit to realizing resolutions by conducting regular evaluations, involving mentors or trading friends as third parties who provide objective insights.

Creating an end-of-year trading plan, conducting a trading evaluation, and designing New Year's resolutions are important steps to improve trading performance. Use the end-of-year moment to learn from experiences, identify areas for improvement, and optimize trading strategies. With a structured approach, traders can start the new year better prepared and focused on continuous improvement.

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