How do you review a trade you shouldn't have taken?

Some trades are mistakes before they're losers: off-plan, oversized, or taken on impulse. The review that matters isn't "I lost" but "why was I in this trade at all".

How do you review a trade you shouldn't have taken? — bid-ask spread diagram
The bid-ask spread on a currency pair

How do you examine your bad trades?

  • the questions you ask yourself after
  • how you distinguish bad luck from bad process
  • what you do to make the same mistake harder to repeat
How do you review a trade you shouldn't have taken? — drawdown and recovery diagram
An equity curve during a drawdown and its recovery

The journal guide suggests the fields that make these reviews possible.

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