Jot down your Forex records or you’ll blow your account!
The problem with trading is that if you don’t keep a record of your trades you won’t have a good perspective on whether you are following a profitable system, or a disastrous one.
And that’s why you need to run your trading account with the same discipline you'd run any successful business.
Any successful business owner will be able to give you a whole history on how his company has been performing, and growing over the years.
And with trading, it shouldn’t be any different.
In fact, just like a blue-chip business tracks its performance with profit and loss statements, you should track your Forex trading account, thoroughly.
It’s not as complicated as it sounds.
You can keep track of your Forex performance using a simple trading journal.
A trading journal is basically a detailed record of every trade you make, and levels and parameters you used to get in and out of each trade.
Let me explain.
So what exactly should you be recording in your trading journal?
With every entry in your trading journal, you need to record:
The currency name or instrument you traded
The amount of pips or lots you invested in the trade
The rand value of your trade
The dates you got in and out of your trade
The stop loss and take profit levels you set
The gearing and margin on your trade
The profit or loss you made in that trade in percentage and rand terms
The reasons you got in your trade (in other words, the trading strategy or methodology you used)
By writing these details down for each trade and monitoring their results over time, you’ll soon see if you have a winning trading strategy or not.
So how many trades must you jot down before you know for certain if you have a winning trading strategy or not?
5, 10, 15?
No, this is far too little data for testing to see if a system is profitable or not.
You need to track a minimum of 20 real time trades before you can get an idea on if your trading strategy works, and how it performs in different trading environments.
If you have tested at least 20 trades, and your trading strategy yields more winners than losers, you can consider it to be a potentially profitable strategy.
But whenever you track your Forex trading strategies, you also need to look at the overall win rate of your trading system.
A win rate is simply how many winners you make compared to the losers you’ll take. For example, I like to look for a win rate of around 60%, where 6 out of 10 trades, on average, will be winners.
This will tell me that the strategy has a better than even chance of delivering me a winning trade, and with strict money management principles, I know I’ll make money in the long term.
If, according to your trading journal results, you find that your trading strategy doesn’t yield you winners more often than not, you don’t have a profitable strategy, and you should scrap the system and keep testing until you find a better one!
And one more thing, to help you out...
I’ve created a Forex money making monitor just for you!
This is the same trading journal I use to track my own Forex trades, and today I’m going to give to you for free!
This tool is all you need to fast track your Forex trading success…
So click here now to claim your free Forex journal now!
Always remember, “Wisdom Yields Wealth”
PS: If you want to know how to develop your own winning strategy, but don’t know where to start, click here
, and I’ll help you set one up