BarroMetrics Views: S&P Approaching Inflection Point? VI
The short position at 1364 was stopped out on Friday at breakeven.
In this series of blogs, I have taken you from the beginning to the end of a trade. There is only one more step to show you by way of concluding the series.
At the conclusion of a trade, I did a ‘Trade Review’.
The first step is an objective assessment of my discipline: I rate the trade as follows:
- Entry and exit in accordance with Plan: 3 points
- Entry OR exit in accordance with Plan: 1 point
- Entry and exit NOT in accordance with Plan: o points
The idea is to score 90% of available points. A number below 90% is sounding warning bells about my discipline. In this case, I’d rate my score with a ‘3’.
The next item for review: what, if anything, could I have done better? We need to be careful about hindsight bias. In this case, the entry was on of those rare events where the market never went against me. So, I could not have entered better.
The exit? Well, I did have around 40 points in my favour and ended with a breakeven trade. BUT given my method and view of the context, I would not have changed anything I did.
The final item is: did I learn anything about myself or the markets? I’ll need to go through that today. But at this point, probably not.