What tool should I use for recording?

You can use: 1) Excel/Google Sheets -- free, customizable to your needs; 2) Specialized trading journal software -- such as TradeJournal, Edgewonk, feature-rich; 3) Notion/Evernote -- convenient if you already use them; 4) Handwritten journal -- some say writing by hand helps remember better. The most important thing is to keep it simple and easy to use.

If I had a good month, can I increase my position size?

Recommendation: 1) Wait for 3-6 months of data before deciding -- one month is not representative, it could be luck; 2) If performance remains consistently solid -- consider gradually increasing, e.g., 5% at a time; 3) Do not increase significantly just because of good performance -- distinguish luck from skill; 4) Remember to also tighten risk controls -- larger positions mean larger stop-loss amounts.

When should I pause trading?

Consider pausing in these situations: 1) Single day loss exceeds 5% -- suggests your state is off; 2) 3 consecutive losing days -- market conditions may have changed or your strategy has issues; 3) Notice yourself becoming emotional -- starting to FOMO, wanting revenge; 4) Strategy performance clearly deteriorating -- e.g., from 70% win rate to 40%; 5) Poor physical or mental health -- best not to trade when not in good shape.

Should I do the review mid-month or end of month?

Best at the end of the month (e.g., last trading day of each month), because: 1) You can see the full month''s data -- from the 1st to the last day; 2) You can do detailed analysis during holidays -- weekends give more time; 3) You can prepare for next month -- set goals and plans; 4) Not too frequent -- once a month is just right.

How long should the monthly review take?

Recommendation: 1) Basic check -- 30 minutes, quick review of key numbers; 2) Detailed analysis -- 1-2 hours, including strategy analysis and mindset review; 3) Strategy review -- quarterly, 2-3 hours, comprehensive system audit. Remember, this is an investment in yourself; skimping on this time can cost you more.

What should I do if I find a strategy problem?

Approach: 1) Stop using the problematic strategy -- do not waste more time and money; 2) Analyze the root cause -- is it a data issue, execution issue, or environment issue? 3) Do a small test -- test the fixed strategy with small amounts first; 4) Record the lesson -- so you can avoid repeating the same mistake; 5) Abandon the strategy if necessary -- sometimes admitting a mistake early is the best choice.

End-of-Month Risk Control Checklist 2026: A Monthly Review Process Every Investor Must Learn

Why Do an End-of-Month Review?

Monthly regular review is the key habit that distinguishes professional traders from retail investors. Those who do not review will repeat the same mistakes forever, while those who regularly review can continuously identify problems and improve.

Using data collected from a trading journal, a monthly in-depth analysis can help you:

Identify recurring problem patterns
Confirm which strategies perform best
Adjust next month's trading plan

Five Key Check Items

1. Performance Statistics

Metric	Calculation	Focus
Monthly Return	End NAV / Start NAV - 1	Compare with last month
Win Rate	Winning trades / Total trades	Normal range 40-60%
Avg Profit/Loss Ratio	Avg profit / Avg loss	Target > 2:1
Max Drawdown	High to low within month	Should be < 10% of total capital, see Regime and Risk
Trade Count	Total trades	Too many may indicate overtrading

2. Rule Compliance

Calculate the ratio of "trades following the plan":

How many trades fully followed the plan?
How many trades had deviations? (premature stop-loss, chasing, no stop-loss)
Target: plan execution rate > 80%

3. Risk Indicators

Single largest loss: Did it exceed 2% of total capital?
Single day largest loss: Did it trigger the daily risk limit?
Consecutive losing streak: Is it beyond normal range?

4. Emotional Records

Review the emotional scores from your trading journal for the month:

What is the correlation between emotional fluctuations and trading performance?
Which situations particularly trigger emotional decisions?

5. Next Month Adjustment Plan

Based on the above analysis, formulate specific improvement actions:

Which strategies should continue?
Which behaviors should stop?
Which new rules should be added?

Checklist Template

□ Performance Statistics
  □ Monthly Return: ___%
  □ Win Rate: ___%
  □ Avg Profit/Loss Ratio: ___:1
  □ Max Drawdown: ___%

□ Rule Compliance
  □ Plan execution rate: ___%
  □ Number of rule violations: ___

□ Risk Check
  □ Single largest loss: ___%
  □ Daily risk limit triggered: Yes/No

□ Emotional Assessment
  □ Impact of emotions on performance: Low/Medium/High
  □ Most common emotional issue: ___

□ Action Plan
  □ Things to continue next month: ___
  □ Things to improve next month: ___
  □ Things to stop next month: ___

Summary

Spending 30 minutes per month on this checklist is the best investment you can make for your trading performance. For more risk management techniques, visit the Learning Center. The key is:

Be honest with the data -- do not deceive yourself
Identify problem patterns -- not just see results, but understand causes
Formulate concrete actions -- do not stop at analysis, take action