Trading Forex: The Importance of Record Keeping

Filed under: Learn Forex Trading |

If you are serious about trading forex, then really, keeping good and accurate records is a must. Although MT4 automatically records all of your trades and even produces a little graph of your equity curve, which is quite useful, there is really no substitute for keeping your own records. If you keep your own records in an excel spreadsheet, you can analyse the data on a much more in-depth level. For example, you can work out the profits or losses that you have achieved on each pair, you can work out which risk-reward levels have been the most profitable, or you could look at which kind of setup (i.e. a pin bar setup, an inside bar setup, a breakout, etc.) you have had the most success with.

 

Another thing that you could, and if you are really serious about your business, you perhaps should do, is to keep a visual record of all of your trades. Print out each chart both when you enter and when you exit a trade and make a note of the result. Then, at the end of the month, you can go back through these charts and see how well you performed. Would you take the same trade again? Did you make any mistakes? These are all things that need to be looked at. This really is a good way to learn and to develop as a trader.

 

In any kind of business, there are always periodic reviews of performances, and being a forex trader should be no different. The main difference is that you are accountable to yourself rather than to a boss. This is where many people fall down – because they are not tough enough on themselves! However, if you treat trading forex like a business, then you will be one step closer to being a successful and profitable trader.

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