A post-trade review should be short enough to complete consistently and specific enough to change future behavior. Its purpose is not to explain away the result. It is to compare the trade that happened with the plan that existed before it.
1. Reconstruct the original plan
Record the setup, entry condition, invalidation level, intended exit, position size, and maximum planned risk. Use notes made before or during the trade where possible; hindsight tends to make the original idea look clearer than it was.
2. Compare execution with the plan
Identify any difference between planned and actual entry, size, stop, or exit. A difference is not automatically a mistake—new information can justify a change—but the reason should be explicit.
- Was the entry condition present?
- Was actual size within the risk limit?
- Was the exit rule followed?
- Did any unplanned action materially affect the result?
3. Record costs and final result
Use the net result when possible and record the costs included. Mark the trade closed only when the journal has the information needed for the calculation. Reconcile important differences with your broker record.
4. Classify the decision
A simple four-way classification can be useful: good process/good outcome, good process/bad outcome, poor process/good outcome, or poor process/bad outcome. The two mixed cases are especially valuable because they prevent outcome bias.
5. End with one lesson
Write one sentence that can affect a future decision. Prefer an observable rule over a general feeling. “Wait for the closing confirmation” is testable; “be more disciplined” is not.
THE TAKEAWAY