Trading in the Foreign exchange involves alot of patience, perseverence and absolute dedication to make it long term. There’s no short cut to being successful in almost any discipline, trading isn’t any different. Being consistent entails fully adhering to the foundations of your trading plan. You’re able to do this by devising a trade log sheet.
What should the Trader Log Include?
A traders log should be your DNA defined template, which gives you the opportunity to document your trading results. Your log sheet should not only include the stats which you can gain access to from your broker statement, such a showing the entry/closing time, price of entry and P/L. It should also include the type of strategy you entered (if you have more than 1), the total accumulated pip profit that you made/loss. Once you have entered more than one position, you can set up the pip per trade and total of all your trades. Then the last part which is probably the most important, the evaluation.
Evaluation
This is one of the essential areas that is paramount to the success of your trading strategy. A large percentage of traders do not document the trades they have taken, regardless of the end result. Your evaluation should detail:
Whether the transaction followed your method. If it did not then why?
Your subconscious views throughout the trade. Did you really feel nervous, anxious, uneasy?
Your feelings and feelings following the trade has been closed out.
Write down the key areas, if any to further improve. Then look for methods to improve your system, either by going on training courses, reading books or listening to audios.
A number of investors may look at employing a traders log sheet in your plan as tedious or
monotonous. Unfortunately traders which have this view, over a length of time, due to most very likely losing money or having your account wiped out, will certainly soon realise the significance. There’s no fast overnight, pot luck way to extreme success in the markets, particularly the Forex market. There will be severe tests to show your consistency and willingness to include new ways to enhance what you are doing.
After this you should analyze and spend some time at the end of each week, month, quarter and year to review your trades.
To your success.
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