I'm wondering if you track the % of winning trades and your cumulative returns yearly? Thanks
I do post analysis of every trade in order to understand what I did wrong and what I did right. I am more interested in the process than the bottom line as I know if I follow my process the results will take care of itself.
The brokerage firm that I use for my trading and retirement portfolio track the performance or bottom line for my process.
I have attached a post analysis checklist that I use for my trades. I can tell you the two biggest problems I have are buying in a down/sideways market and/or chasing stocks and buying too high (more than 5% above a proper buy point) then being shaken out on a pullback. I need to trade less in the downtrending and/or sideways markets.
I will say that my "win rate" only needs to be 50% if I cut losses at 5% and buy a few stocks that advance 20% or more. Do not hang on to stocks and take 20%-50% losses thinking they will return to former highs.