The quote “Your as good as your last trade” is partly true, but a professional trader who strives value and development has to look back and analyze previous trades.
If you’ve traded with a demo-account in the past, you should be aware that a big loss is recovered by one simple click on a button. That’s not how it works in the real world. It’s not our nature looking our faults straight in the eye, but this is something you need to lean. That’s the only way to work on your flaws.
Assessing your performance will tell you a lot about you and what trading style suits you best. Ask yourself the following questions:
With which pairs do I perform best?
Which pairs do I perform are my losing ones?
During what time period of the da yam I most profitable?
On which days have I lost the most?
On what days am I most profitable?
Am I more successful when long-term trading or do I perform better scalping?
Every fool can open a chart and draw some technical lines. Question is, are your technical drawings correct and successful? Fact is that 70% of all traders can’t draw their technical analysis correctly.
Setting up your trend lines or key levels inaccurately will make you a failure even before entering the trade.
Don’t fear, Thanks to our modern technology we are capable to cut of the rough edges. By taking screenshots before and after the trade we can research if we acted correctly.
“The easiest thing to do is prepare. If you don’t, on behalf of the other market participants, we thank you.”
Record every trade you make. Ideally in a spreadsheet format. Completing your spreadsheet needs to be done when you open a trade and when you close it. When you close your trade you can use this list of transactions to assess your trades.
Every trader is unique, there are no right or perfect spreadsheets. Design your sheet like you want to. Make it easy and fun for yourself.
Starting your spreadsheet isn’t the hard part, keeping it up to that is! That’s were a lot of traders fail. Completing your spreadsheet should be part of your trading routine. Don’t be like a lot of others and say “I’ll do it later”. Do it right here and right now.