Dr. Jim shares a strategic framework to evaluate trading progress as 2026 approaches. The self-evaluation centers on three key factors: experience level, account size, and strategy selection.

For experience level, beginners should focus on gaining knowledge rather than prioritizing P&L, intermediates should pursue strategic mastery, while advanced traders can concentrate on maximizing risk-return ratios.

Account size significantly impacts trading approach. Small accounts ($25K or less) should focus on defined risk strategies with limited flexibility. Medium accounts ($25K-$100K) can mix defined and undefined risk, while large accounts ($100K+) can lead with undefined risk strategies and enjoy greater flexibility.

Dr. Jim advocates mastering 3-4 strategies rather than spreading focus too thin, suggesting defined risk options (verticals, diagonals, butterflies) and undefined risk strategies (short puts, strangles, ratio spreads) as core competencies.