If a trader wants to monitor progress and refine methods over time, which practice would they rely on?

• A. Recording gains and losses to assess performance and adjust strategies.
• B. Ignoring past trades and starting new each day.
• C. Only keeping a qualitative diary without numbers.
• D. Replacing performance review with opinions of others.

Answer: (A)

Monitoring progress and refining methods over time relies on systematically recording trade outcomes and reviewing the data to learn what works. By logging each trade’s details—entry and exit, size, risk, and result—you create a continuous feedback loop that reveals real performance trends rather than relying on memory or feelings. This data lets you calculate metrics such as profitability, win rate, average win/loss, maximum drawdown, and risk-adjusted measures, helping you see which setups, rules, or risk controls actually yield positive results. With this evidence, you can test hypotheses, tweak entry or exit criteria, adjust position sizing, and improve discipline, leading to steady refinement of the trading method.

Ignoring past trades and starting fresh eliminates the learning that comes from history; a diary without numbers provides only vague impressions, making it hard to judge what actually drives results. Relying on qualitative notes alone misses the objective signals that show what’s reproducible. And leaning on others’ opinions replaces personal, data-driven assessment with external judgments, which can misalign with your own risk tolerance, market context, and performance goals.