Thursday, March 25, 2010

Is it important to keep track of what happens after you close a trade?

Posed hypothetically, and then answered in a stream of poignant 140 word or less quips, fellow trader and Twitter user @FuturesTrader71 caused this trader to consider affairs in a different way.

What follows are direct quotes, edited so as to demonstrate control of the English language in an environment without limitation as to length:
Does a pro athlete need to know how the details of what happened at a tournament after he/she is out?  If so, why is it relevant?
If you are still trying to gain consistency in trading, ignore what happened after your exit.  Your journal is a way of tracking how well you execute your plan.  It is not a document that is very full of info about the market.
There is an exception to this, if you feel that your exits are poor, then it makes sense to monitor what happens after you close the trade.  Otherwise, work on basics first.
Your primary goal:  Determine if I have a good plan and if I stick to it.  Period...that's it.
Secondary goal once primary is achieved:  Can I improve my expectancy / profitability with my plan?  This comes later.  Without the first, there is no second.
Simplify the information.  This is why I say, "remove anything from your screen that is not part of your setup." 
Keep it simple and focused.
In the example of the athlete, next year's team will be different.  Let the coach worry about what happens after you're out.  Just do your job when playing.