Been going through my losing positions from last month and wondering how others approach this.
Do you focus more on entry timing, risk management, or market conditions? What specific questions help you figure out what went wrong?
First thing I check - did I stick to my stop loss? Then I look at position size. Most of my losses happen when I risk way too much.
Screenshots are everything.
I screenshot every single trade the moment I enter - chart setup, my reasoning, all of it. When I’m going through my losses later, I pull up that screenshot and see what actually went down.
Catches stuff like jumping in too early or completely missing resistance levels that were right there.
The big question: did my idea work but I got scared out by normal price movement, or was I just dead wrong?
If it’s the first one, I need bigger stops. If I was wrong, I dig into what I missed.
I also track how long I hold winners versus losers. Turns out I was taking profits way too fast and riding losses way too long.
I use a simple spreadsheet - expected vs actual results. One question matters: would I take this exact trade again with the same info?
Yes? Bad luck or market noise. Move on.
No? Time to dig. Usually it’s one of three things: broke my rules, traded emotionally, or jumped in before my setup was complete.
Biggest revelation was tracking losses after big wins. I was getting cocky and taking crappy setups. Now I force a 30-minute break after any trade that hits 2% of my account.
Don’t overthink it. Some trades just lose - that’s trading.
I review my losing trades by checking three main areas: analysis, execution, and rule adherence. First, I ask if I got stopped out for a valid reason. It’s important to differentiate between a failure in my analysis versus random market fluctuations. Second, I look at my entry point. Did I stick to my plan or did I chase the market? Also, was my position size appropriate? Lastly, I evaluate my stop loss management. Did I move it or hold onto a losing position too long hoping for a turnaround? Most issues come from execution errors, not analysis mistakes. Improving your execution process is key.
When I review losing trades, I ask myself three things.
Did I follow my plan or let emotions take over?
Was my position size right for my account?
Did the market actually fit my strategy, or was I just forcing a trade?
Focus on three areas: position size, entry logic, and exit execution. Overleveraging is more damaging than bad entries. If you risked over 2% on a trade, that’s often where the issue lies. For entries, evaluate your reasoning. Was there a clear setup, or were you forcing it? Lastly, consider your exit strategy. Did you stick to your stop loss, or did you change it? Most losing trades worsen when you second-guess your exit.
Just ask if the setup was actually there or not.