Audit your trading the way pros do it

Traders are always interested in improving their techniques. Today, I would like to offer a framework for thinking about your trading, using the way fund sponsors evaluate investment managers, called the 5 Ps.

• People: Who are you, and what's your experience and training?
• Performance: How have the returns been, and what kind of risk did you take to achieve those results?
• Philosophy: What makes you think you have an edge?
• Process: How do you implement the edge you have on the market?
• Portfolio: Does your portfolio reflect what you are saying about philosophy and process?

With the preface that there are never any single right answer in investing and trading, I will focus on "philosophy" and "process".

The full post can be found here.