Forex trading is a procedure compelling to learn more and more, discover new methods and ways of successful trade. And you would agree that the more things you have to do the probability of making mistakes become higher.
Forex trading does not mean fundamental and technical analysis of currency rates or a creation of trading strategy.
As to avoid making the same mistake over and over it is highly advisable to keep a Forex diary. Generally successful traders keep a journal or a diary of trading activities where they carefully scrutinize their success and failures trying to find out what to go on doing what to dismiss.
A Forex diary will serve as a repository of your each successful and unprofitable step. If you keep it all the time with you it will become your best friend.
Now let’s discuss what you should mark in the diary. The following points are the basic features that each trader should focus on.
- Why do I take a position?
- What are the date and time I open the position?
- What is the rate at which I take the position?
- What is my strategy for the position?
- What are the date and time I close the position?
- What is the rate at which I close the position?
- What is my loss or profit on the position?
- Why do I close the position? Did I follow my strategy?
It is well known that the carelessness and the neglecting of certain principles have become reasons of great losses and trading failures. None of us can for hundred percent predict the value of a currency pair during the next several days and weeks. Though there are various educative ways of helping to make predictions on future prices the only certain value about trading is the present moment.
Therefore try to be based on your own practice. It’s natural that you can hardly become a trading master overnight. So you should spend most of your energy on learning and developing trading skills.
Make notes of your steps regardless they are good or bad, efficient or not. It will help you understand your drawbacks and pay attention on your mistakes. Note that this is the real and the most effective way of avoiding mistakes and reaching success. A Forex diary is your book of success, the more pages you fill, the more experience you will gain. Each page will help you discover yourself and move ahead.