Anticipating a move to the upside - 1.0900 Target.
Things to think about...
The quote “You are as good as your last trade” is correct to a certain degree, however as a professional trader who strives to prosper and develop you must review your previous months of trading.
If you have traded a demo account in the past, you will be aware that once you have incurred a great loss you can make it vanish with a touch of a button; this is not how trading works in the real world. Although it is not in our nature to want to face our errors, this is something that you must grow accustomed in doing, as it is the only way in which you can work on your flaws.
Reviewing your performance will tell you a great deal about your trading style and what is best suited to you. Ask yourself the following questions:
What currency pairs am I performing best with?
What currency pairs do I keep losing with?
During what time of the day am I most profitable?
During what periods of time has my losing streak started and finished?
Which days am I most profitable?
Am I most successful when I hold my trades for a long period of time or am I a scalper?
Answering these questions can help you to overcome the difficulties that you may currently be facing.
There are two significant aspects to organising your trading:
Spread sheet fulfilment
Post Mortem Analysis
This does not mean that your account is going to die! It is however a form of analysing your technical ability.
It is possible for any individual to open a chart on any market and draw all sorts of technical concoctions. However, the question is whether what you have drawn is correct and whether it is successful. In actual fact 70% of traders are drawing their incorrectly.
In this business if your or your key levels are positioned inaccurately, you my friend are setting yourself up for failure before you have even entered the trade!
But fear not because thanks to modern day technology we are able to iron out our rough edges. By taking a screenshot of our chart before and after a trade we can examine whether we are applying our tools of correctly.
Once you have drawn on your and you are eagerly awaiting your perfect entry point, at this point go ahead and take a screenshot or an image capture. The screenshot must be taken on the timeframe in which you shall be executing your trade, as well as including the price and time, which is found along the bottom. Once you have done this, name your image with the currency pair and date.
Whether your trade has played out to your analysis or not, it is vital that you take a second screen shot as this will become a template for any trades you place in the future.
If your trade has played out the way in which you had predicted then great; keep doing what you are doing! However, if you are unsuccessful you now have the material that will help you to understand what exactly went wrong and this will prevent you from making the same mistake in the future.
It is imperative that you stay disciplined and on top of your post-mortem analysis, as over a long period time this will collectively become your history as a trader. Not only will it become a foundation for your present performance but it shall also demonstrate how much you have improved.
All professional traders will view each trade as a transaction and so the importance of keeping a log is paramount. In combining your spreadsheet and post-mortem you will have a full proof trading journal, assisting you to grow into the successful trader you endeavour to be.