Trading Year in Review: ITPM Lessons from 2025 and the Setup for 2026

A sharp year-end review of 2025. What worked, what did not, and how I am setting up for 2026.

I do not hold an Australian Financial Services Licence. Nothing in this post is personal or general financial advice or a recommendation in relation to any financial product. This is a personal reflection on my own trading year.

This is the honest 2025 year in review. The themes that mattered. The lessons. The setup I am taking into 2026.

How did 2025 really go

Let's kick this off with some honesty. What was your net P and L for 2025?

Whatever the answer, the value is in what you do with it. Triple digit return or a hard year, the work is the same. Review honestly. Identify what was process and what was luck. Reload.

For many traders, the final stretch of the year was tricky. That is okay. Not every season syncs with your strategy. What matters in the ITPM mindset is the ability to review, refine and reposition.

Markets were messy. Sector dispersion widened. Fast markets showed up without warning. For those who stuck to their process and managed risk first, there were still plenty of opportunities to get paid.

Process over performance

Skip the wishful thinking. The questions worth asking are simple.

• How many high conviction trades did you actually take?

• How many full losses did you sit on?

• Did you actively model your positions or did you set and forget?

• Did you scale into winners or let them fizzle?

You do not need a hundred great trades. You need five really good ones, properly managed. Solid research, clear structure, active management, brutal honesty. That is the ITPM blueprint in action. If you are still surprised when a trade moves and you do not know what to do next, you are not planning right.

Fast markets and staying agile

The lesson on fast markets in 2025 was clear. They do not wait. Whether it was crypto volatility, macro headlines or a liquidity squeeze, the best traders acted early. Not emotionally. Decisively.

You do not have to swing big every time. When the market speeds up though, you have to stay in motion. Adjust size. Trim risk. Book profits. Protect downside.

If you have frozen hands in volatile conditions, the market will punish you. If you have an active watchlist and a few commercial ideas ready, it is much easier to adapt mid cycle.

The K-shaped economy is not going away

2025 was a classic K-shaped year. The top spending consumer kept the upside intact. The bottom of the income distribution kept struggling with inflation and wage stagnation.

The market does not care, as long as the aggregate data holds up. But the divergence underneath is becoming structurally important. More fragility. More tail risk. More room for surprise.

Traders need to watch the macro and the micro at the same time. You are not just trading tickers. You are trading structural imbalances, policy reactions and sentiment swings.

Themes that mattered: AI, data centres, complexity

AI was the hot theme of the year. By now the easy wins are gone. 2025 forced traders to move past being in the right sector and into actually understanding who is positioned to win and why.

It is not about holding a basket of names and hoping one flies. The market has matured. So has the research bar.

What is driving earnings upgrades. Which companies have the architecture and margins to lead. Where is the edge on valuation, timing or volatility. Specific beats general.

Managing the curve

Where a lot of 2025 performance was made or lost was in the management of existing trades.

Winning trades left to drift. Losing trades held too long. Calendars stacked with no plan. Sound familiar? The reps to sharpen this are simple. Should I restructure this. Can I recycle capital into higher skew trades. Have I booked anything or am I just sitting.

The best traders actively manage the curve. They model new price targets. They restructure to optimise returns. They do not just hold and hope. That is where real alpha gets unlocked.

Political and macro risk into 2026

Going into an election year, ignore political risk at your own peril. Unemployment, AI driven layoffs, tax changes, fiscal handouts. These are not background noise. They can shift the tone of the whole market.

If layoffs pick up or stimulus slows, things can wobble fast. You do not want to be flat footed. Build scenarios. Know your plays. Be ready to execute with conviction if the tone turns. That is when real opportunity shows up.

What I am watching going into 2026

• Earnings clarity. January is crucial for reading post holiday consumer behaviour.

• Data centre spending. Delays and cost overruns are surfacing.

• Rotation trades. Beaten down value names may offer easier upside than overcrowded AI leaders.

• Rate cut impact. Cuts may no longer boost the real economy the way they used to.

• Volatility spikes. Be ready for narrative shifts, especially in political headlines.

You do not need to know what will happen. You need to know what you will do if it does.

Final word: turn reflection into execution

2025 was a crucible. A year where speed, structure and adaptability defined performance. Now is the time to reflect and reload.

Review your year with honesty. Define what worked and what did not. Build a sharper, cleaner process heading into January.

Do not chase. Do not drift. Size right, trade with intention, manage risk like it matters. Because it does.

Thinking about ITPM in 2026

If you have found value in the ITPM process, or you are considering going deeper, my ITPM reviews cover the courses in detail.

I have seen firsthand how refining my process through the ITPM structure changed my mindset, my execution and my results. Whether the same education works the same way for you depends on your circumstances and the time you give it. I cannot tell you that. What I can tell you is what it did for me.

If you want to start 2026 strong, I have an exclusive ITPM discount. Use my code ptmcutts30pct for PTM 2.0.

Affiliate disclosure. I earn a commission if you purchase an ITPM course through my discount link, at no additional cost to you. That does not change my view of the courses, which is based on having completed them myself.

Frequently Asked Questions

How many trades should I aim for in 2026?

Quality over quantity. Process traders typically focus on around sixty to seventy high conviction setups across the year, with each one properly researched, sized and managed. The right number for you depends on your strategy, your risk tolerance and how much time you can give to research. There is no universal number and no guaranteed outcome. Past performance is not indicative of future results.

How do I manage risk better during earnings season?

Stay proactive. Book into strength. Apply protective structures where appropriate. Do not overexpose to randomness. The detail depends on your own strategy. A licensed financial adviser is the right person to help you set risk parameters that fit your circumstances.

Are themes like AI still valid going into 2026?

Themes are still valid as a framing tool. Surface level exposure is not enough on its own. The work is in separating the names with real fundamentals from the names that just have momentum.

What is one thing to fix next year?

Trade management. Booking. Rebuilding. Modelling. Most retail underperformance is not in entry quality. It is in what happens after the entry.

Disclaimer

I am a retail trader based in Australia. I do not hold an Australian Financial Services Licence. Nothing on this website is personal or general financial advice or a recommendation in relation to any financial product. Past performance is not indicative of future results. Options trading carries substantial risk including the risk of losing the entire premium on every position. Please consult a qualified licensed financial adviser before making any investment or trading decision.

The information contained in this article is provided for general informational and educational purposes only and does not constitute financial, investment, or other professional advice. The content reflects the personal opinions of the author based on publicly available information at the time of writing and should not be relied upon as the basis for any investment decisions.

Readers are strongly encouraged to conduct their own research and due diligence, and to consult with a qualified financial advisor or licensed professional before making any investment or trading decisions. The author and publisher make no representations or warranties, express or implied, as to the accuracy, completeness, or reliability of the information provided and accept no liability for any loss or damage arising directly or indirectly from the use of or reliance on the information herein.