Level 4 · Review
Review the Decision, Not Just the Result.
A profitable trade can come from a poor decision, and a losing trade can come from a well-executed process. Review has to separate those two things or the outcome will train the wrong behavior.
The Core Idea
The P&L tells you what happened. It does not tell you whether the process was good.
If a poor trade wins, treating the profit as proof encourages the same poor decision next time. If a qualified trade loses, treating the loss as proof of a bad process can destroy discipline just as quickly.
Decision Quality vs. Outcome
Positive Outcome
Negative Outcome
Good Decision
Good Process + WinReinforce the process without assuming every repetition must win.
Good Process + LossAccept the outcome while preserving the qualified decision.
Poor Decision
Poor Process + WinDo not let profit reward a decision you should not repeat.
Poor Process + LossIdentify what failed before blaming the market.
Review Questions
Grade the stages, not just the money.
Was the trade qualified before entry?Review context, structure, risk, and urgency.
Was execution consistent with the plan?A good idea can still be poorly executed.
Did management respond to conditions or emotion?Identify whether the plan changed for a legitimate reason.
What deserves repetition?Reinforce the behavior, not merely the outcome.
BFTL Takeaway
Review is where the process becomes teachable to yourself.
The objective is to leave the session knowing which decisions deserve confidence and which decisions need correction.