There’s no sugar-coating it—recent weeks have been rough in my account.
Call it a pullback, a correction, or a bear market—whatever label you prefer, the selloff in U.S. growth stocks hasn’t spared me. And let’s be honest: Watching account equity shrink isn’t fun. Not even a little.
But one thing that helps me stay grounded through market swings—both up and down—is tracking my Closed Trades Performance. It’s nothing fancy, just a simple spreadsheet with four columns:
• Date Closed
• Ticker
• Net Gain/Loss
• Running Total
That last column, “Running Total,” continuously adds up my net dollar gains and losses as I close trades.
The key benefit? It shifts my focus away from open equity swings in positions I haven’t closed yet. Any old-school futures trend follower will tell you: open profits aren’t yours until you close the trade. I learned this trick from my friend Peter Brandt, and it has been invaluable for my mindset.
Why This Helps My Trading Psychology
By focusing only on closed trades, two important things happen that help keep my emotions in check:
1. When My Account Is Soaring
When my trades are working, account equity is climbing, and everything looks great, I’m usually closing only the small losers—holding onto the winners. So my closed trades spreadsheet shows a slow trickle of losses.
This is a reality check. It keeps me humble, reminds me that my winners aren’t locked in yet, and prevents overconfidence. I’m not invincible—those open gains could evaporate.
2. When My Account Is Sinking
On the flip side, when trades that were once big winners start rolling over, and I get stopped out, I notice something interesting—those once-huge gains might have shrunk, but they’re still closing as winners. And those small winners offset my small losers, keeping my closed trade performance flat or even slightly positive.
This is a huge mental buffer during drawdowns. Yes, my account equity might be off its highs, but I’m still stacking wins. It prevents the “sky is falling” mentality that can cloud judgment during equity pullbacks.
A Simple but Effective System
Is this method perfect? No. But it works for me. And it might work for you.
Trading is a mental game. After protecting capital, protecting our mental state is just as important. Find what keeps you grounded—this is what does it for me.
Sean McLaughlin | Chief Options Strategist, All Star Charts
