Forex: How to Learn From Your Mistakes

Filed under: Learn Forex Trading |

Screen shot 2013-02-04 at 10.27.00I have a simple way of learning from my forex trading mistakes, and if you are not already doing this, then it might be prudent and useful to think about doing this too. What I do after every trade is to print out the chart and make a few notes about the trade – along with the result.

 

I have a Mac computer, but I am sure that you can do this with Windows-based operating systems as well. What I do is, when I put an order in and the order is filled, I take a snapshot of the chart (‘shift-apple-4’ for Mac users). Then, when the trade comes to fruition by either reaching the target or hitting the stop loss, I take another snapshot. This is in effect a before and after image of the trade.

 

Once I have done this, I insert them into a page in Microsoft word and then print it out. I write the pair and the trade number at the top of the chart (which correlates with the trade number in my excel spreadsheet of all my results), and I add any notes or thoughts about the trade. I make a list of the reasons of why I entered the trade, and see how many levels of confluence that I had.

 

At the end of every month, I look through my printouts and review each and every trade that I took, re-reading my notes and thoughts on each trade, and adding to them if I have any further thoughts about the trades after gaining some mental distance from them. I try to highlight any mistakes that I made, and to try to remember what those mistakes are so that they do not happen again. This is as good a way as any of reviewing your trades in a very visual way, and of learning from your mistakes.

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