The most crucial thing you can do to improve your trading is to evaluate your own trades. A deep dive at the end of the year into your trading results is critical to enhancing your trading performance. By evaluating, you discover how to repeat what you did right, and learn what not to do and how to make crucial changes to your trading method.
While you ought to review each and every single among your trades in the order you took them, I always begin with evaluating the greatest winners and losers of the year. These trades have the many influence on your general outcomes and provide insight to your psychological and tactical method to trading.
Today I’m going to show you exactly how to do this by examining our Bullsonwallstreet Swing Trading Results. We will break down the 5 biggest winning and losing trades of 2020. Let’s start with the macro results.
Broad View Results
Here is the break down for the general statistics for our 5 most significant winning and losing trades:
Total gains $15270.
Total losses $11204
Net gain +4030 (+4%).
Typical gain $3054
Average loss $2240
Reward to Risk ratio 1:4 to 1
Next year, I will work hard at decreasing the average loss size. This year, if it had been at a 2:1 rate, the average loss would have been $1500 rather of $2240. That would have increased benefit from $4030 to $7530, or $753 per trade.
We had a net gain of $4030, or 4%, over the course of 10 trades. The typical win was $814 more than the typical loss, and we made usually $430 on earth trade ($4030/10). This gave us a risk-reward of 1:4:1. While ideally, I like to be winning at a 2:1 ratio, our danger ratio was quite good. We won the volatility video game.
While this is good, there is room for enhancement.
The very first thing I need to know when reviewing my most significant winners and losers is which side came out ahead. In essence, you’re evaluating whether the added volatility assisted or harm you.
Examining the Trades
Next, I analyze the result or result. If I carried out the trade properly, I want to understand. The trade grades favorably regardless of the result if the procedure is great and execution was on point. On the other hand, a bad procedure with bad execution is a bad trade even if the result was favorable. The key here is to focus on procedure and execution, not the outcome.
Now that we understand the big photo outcomes, we move to the micro.
Top 5 Winning Trades The SOXL Trade The tactical plan: The semiconductor sector was showing relative strength throughout early 2019 and pulled back hard after a 4 month run. This is common in huge patterns. On the pullback I search for potential pattern continuation, which SOXL exhibited as it remounted
Here are the 10 Trades ( all alerts to Bulls Swing Members)
it’s essential moving average. This lead to the trend-pullback continuation setup entry. The reward to run the risk of was 2:1, with capacity for more if the stock reached the previous high. The strategy was strong. The outcome: The strategy was not just carried out, but we got more than the prepared for 2:1.
When examining trades, I like to return and comprehend why I took the trade. If it was a good plan, I ask myself. Factors consist of the overall market and sector, quality of the setup and risk ratio. This all relates to the procedure.
We exited on the” fatigue space”that
cause a pullback
, ending the trade with an executed 3.5:1 benefit to run the risk of ratio. Grade: A The JDST Trade The strategy: JDST is an inverted ETF, which is a bearish play on gold miners. This ETF will increase when gold miners go down. Given that gold and gold miners were going parabolic, JDST was getting crushed. On the day of entry gold miners put in an inverted hammer. That gave us a reversal hammer candle at extreme conditions in JDST. This is a textbook” rubber band “turnaround setup. Target was the open space of the previous price range, which would offer us 4:1 on the trade.
The result: This trade was about as good as it gets. Rate went directly to our target variety before pulling back.
The TNA Trade
The outcome: Price struck our target within 3 weeks with only small pullbacks, and we executed the prepared 3:1 reward to risk.
The video game plan: TNA is the small-cap leveraged ETF. Small caps had been tracking the S&P 500 for much of 2019 till this point. In late summer season little caps started to get steam and program relative strength to the total market. Strong volume showed accumulation. At this point, a “W” formation formed and cost remounted the essential moving averages. Entry was on remount and target was the top of the 2019 variety. The reward to risk was a strong 3:1.
The SPXL Trade
The result: After one scary pullback 4 days after entry, price zoomed to our target level. Looking back, while this was an exceptional 3:1 trade, we could have made the target greater at the 50ma.
The game strategy: The market had tanked from October 2018 to the end of the year. After Christmas we had a blow off bottom as the market went into total worry mode on a selloff at currently extended levels. The occurring bullish swallowing up candle light pattern was the idea for our entry. Target was listed below the November-December support/resistance variety for a 3:1 RR.
The FB Trade
The strategy: This was a similar trade to the above SPXL trade.
The October-December crisis took almost all stocks down with hit. Entry was similar to SPXL with the very same risk profile. The result: Price went straight to our target range.
Like SPXL, we might have let earnings run a
little bit more. Grade: A-Leading 5 Losing Trades
The NFLX Trade
The strategy: This was a classic trend
continuation play after a long debt consolidation, on remount of the 9ema. The market and sector looked great. The benefit to run the risk of ratio was around 2.5:1. The result: Price did not reach the target level and pullback back tough to our stop. I persisted and loosened stop way too much. This a theme for my greatest losers. The setups are great and it’s alright to get stopped out of good setups. However I must not be handling extra risk. Grade: B-/ C +(excellent video game plan, poor execution due to stop modification)
The BABA Trade
The game strategy: A
traditional pattern continuation in a stock that was revealing a strong accumulation pattern. Great threat ratio and target range at current high made sense. The outcome: Price achieved target variety, however I chose the bigger win. Is this green or did it make sense? Honestly, it’s tough to tell however at the least, I need to have moved my block to recover cost to ensure earnings did not turn to loss.
Grade: C(The game plan was good and target attained, however poor execution)
The BA Trade
The strategy: The stock had gapped down and seemed
bottoming. A new breakout over moving averages was combining into a high tight flag setup. Risk was around 2.5:1. The outcome: The stock blew through stop level and I permitted it to move in case of an overreaction turnaround. Looking back, that was an error. Not just that, however considering the bad news, I might have been extremely ambitious with the setup. I might have waited on the big down space to fill before thinking about Bachelor’s Degree.
The SNAP Trade
The tactical plan: Textbook revenues breakout-pullback setup on
strength at the bottom of the variety. Target level was the top of the variety. Reward to run the risk of was 2.5:1. The outcome: The stock drew back to stop level and took me out after I had actually loosened it some to adjust for the moving averages. The stock then quickly struck the target range after I was stopped out. I might have changed position sizing smaller sized and enabling for a larger stop.
The AMZN Trade
The game strategy: Bottoming play after the stock had actually gapped down and made a strong turnaround and remounted the key moving averages. The outcome: The entry was high as the remount stopped working and cost pullback back to stop level. I loosened up stop in anticipation of a hole of the reversal candle that did really happen. I was appropriate about the turnaround, but after I reached my max discomfort threshold for exit.
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