Grading your trades is an idea I got from a book called the Daily Trading Coach and inspired me to actually take this approach in my own way. It is something I believe will hav a massive difference for me and seperate me from the rest in a few years time. Why? Because doing this has many different benefits.
First of all it increases your awareness of the setup you are in. Fore example if this trade is only a 5/10 in your eyes then you are pretty much already prepared psychologically as you almost know that you can expect a loser just as much as a winner. However here is the main reason why I am doing this and advising it to all of you. A few years down the line I will have likely thousands of trade setups which are all graded. It will show me how well I can judge the quality of each setup and can be used to increase/decrease position size per setup. For example if after 1000 trades I have ranked 100 of them 8/10 and my win percentage and profitability on these trades is much higher as expected I can now increase my position size on these which will increase the size of my winners moneteraly over time.
Here is a video I recorded explaining more about this alongside the importance of you grading them as soon as you take the trade rather than after.
Hope you enjoyed this blog and implement this in your trading because you have nothing to lose and it only takes a minute.