There are many of us out there who have been postponing some chores until after the holidays. Whether it is cleaning our closet or basement or finally getting organized in general, January is probably a good time to get these finished. But what about your trading? Have you thought about taking an inventory of your trading this past year? If not, you probably should.

Reviewing your trades and taking an inventory of your trading in 2018 can do a couple of things. First and foremost, it can tell you how much you made or lost throughout the year. But your progress should not just be measured in dollars and cents. Sometimes traders make real progress but the growth cannot be seen, and sometimes they can be successful making money but lack of discipline and luck might have been major factors. Digging deep and looking at past trades may expose the good and the bad.

In addition, traders sometimes do not notice what their best strategy is until they review all their trades. An option trader might think he has done very well at selling credit spreads, for example. But when he reviews the trades, he finds that he has actually made more money and lost less when buying vertical spreads. Trust me, it can be a real eye-opening experience.

With the year just about over and some free time potentially in your future, this is the perfect time to consider taking inventory. It may expose some strengths and weaknesses as well as give you new thoughts and some amendments to your trading plan. Honestly, the only reason you wouldn’t is because you were too lazy. Shouldn’t this be one of your New Year’s resolutions?

John Kmiecik, Market Taker Mentoring