The End of Year Review

Filed under: Learn Forex Trading |

Well, it’s getting close to that time of year again, the end of year. I know that a lot of people do not even trade forex in December, as the markets tend to get a little volatile and unpredictable at this time of year. However, I actually have a decent record in December (with last December being one of my best trading months), so I will be trading as per usual. The end of year is usually a time for taking stock and analysing your trading performance over the past year. But what exactly should this review entail?

 

Well, to begin with, the most important figure is your profit/loss figure? If you have made a profit of just 5% on your trading capital, then at least that is better than what the banks are offering. If you’ve made 10%, then that is really good, and you are making around the same as a rental property would yield. 15%, and you are ahead of most investments out there – and you can be well satisfied with that. 20% and above, and that is a very successful year.

 

As for me, I’m sorry to say that I’m only a couple of percent up for the whole of 2012 so far, and in that respect, it’s been a bad year. However, I do take a very long-term view of this, and from June 2011, I am still up by around 40%. I experienced a very bad drawdown in 2012 that I have since recovered from, and I have just started to get into profits for the year.

 

Sometimes, you have to look beyond the bottom line profit/loss figures, and look at the potential of yourself as a trader. I know that I have made some mistakes in 2012, and knowing what these mistakes are is important. I have since made one or two tweaks to my trading methodology, and as a result, I’m now sure that 2013 will be a profitable year.

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