Trading in the Forex market involves alot of patience, perseverence and absolute dedication to make it long term. There is no short cut to being successful in any discipline, trading is no different. Being consistent entails fully adhering to the guidelines of your trading plan. You can 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 trade followed your plan. If it did not then why?
Your emotional feelings during the trade. Did you feel nervous, anxious, uncomfortable.
Your feelings and views after the trade has been closed out.
Write down the key areas, if any to improve. Then find ways to enhance your system, either by going on courses, reading books or listening to audios.
Some traders may view implementing a traders log sheet in you plan as tedious or monotonous. Unfortunately traders that have this view, over a period of time, due to most probably losing money or having your account wiped out, will soon realise the importance. There is no quick overnight, plot luck way to extreme success in the markets, especially the Forex market. There will be extreme tests to show your consistency and willingness to incorporate new ways to improve what you are doing.
You then should analyse and spend time at the end of every week, month, quarter and year to review your trades.
If you would like the trading template that I have devised and currently use, please feel free to contact me and I would be more than happy to send this to you.
To your success.
Ken
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