Download the Schwab app from iTunes®Get the AppClose

  • Find a branch
To expand the menu panel use the down arrow key. Use Tab to navigate through submenu items.

Lee Bohl on Reviewing Trade Performance

Lee Bohl discusses the virtues of regularly reviewing your trade performance.

Click to show the transcript

I think a really good habit for new traders to learn is to evaluate their performance. Because if you don't review your performance, number one, you don't know how you're doing, and, number two, you won't see mistakes that you were making over and over. There was a very famous speculator in the 1920s and 1930s, and at the end of each year he would go to his bank manager and he would say, 'Lock me in a vault for three days,' at the end of each year, and then he would review all his trades in that three-day period and then they'd let him out. And he said that was the best thing he ever did to improve his performance. So I think even the best traders constantly see how they're doing, and what they can pick up is a couple of things: Number one, you know, what is their percentage of winning trades? Number two, how much did they win on each trade?

Also, you can pick up patterns: 'Do I always get out too early?' If so, then you might want to adjust how you set your stops. Or, you know, 'Am I taking too short a profit?' Maybe you would look about taking trailing stops, instead. Finally, 'Am I getting in too late in the moves I want to pick up?' And if you're using some sort of indicator system, you might want to shorten the look-back period of the indicators you're using to fight against that. So you can pick up patterns and you can learn from them.

Schwab has tools to help you mentally prepare for trading

Learn more >

Talk trading with a Schwab specialist anytime.
 
Call 888-245-6864
M-F, 8:30am - 9:00pm EST

Get 500 Commission-Free Online Equity and Options Trades for Two Years

Learn More >

Important Disclosures

Past performance is no guarantee of future results.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions.

This discussion is provided for illustrative purposes only, and should not be considered an individualized recommendation or personalized investment advice. The strategies mentioned may not be suitable for everyone. Each investor needs to review a security transaction for his or her own particular situation.

(0114-0260)

Thumbs up / down votes are submitted voluntarily by readers and are not meant to suggest the future performance or suitability of any account type, product or service for any particular reader and may not be representative of the experience of other readers. When displayed, thumbs up / down vote counts represent whether people found the content helpful or not helpful and are not intended as a testimonial. Any written feedback or comments collected on this page will not be published. Charles Schwab & Co., Inc. may in its sole discretion re-set the vote count to zero, remove votes appearing to be generated by robots or scripts, or remove the modules used to collect feedback and votes.