Time for another post and video for my TRUTH about TRADING series. This post and video covers trading records, more specifically, what trading records you should keep and why you should keep them. Keeping trading records can result in a more defined and potentially profitable trader, let me tell you how...
I suggest that you keep the following trading records when trading Forex...
Trading Results - A clear set of trading results. These results will be individualised for each trading strategy and will have been backtested. You should update your trading results regularly. My trading results include win to loss ratios and the total ROI since I started trading the strategy.
Trading Log - A brief trading diary that allows you to record your mistakes and your plans to rectify those mistakes. You may also wish to log when you are performing well, comparing these entries to poor performing times may help you identify areas of improvement.
Trading Notes - If I see recurring patterns or incidents in the market, I make note of it. When I make time, I refer back to my notes and try to develop profitable strategies from those notes. You may also want to make notes of potential strategy improvements.
My other videos in my TRUTH about TRADING series include...
The TRUTH about RISK REWARD RATIOS
The TRUTH about PRICE ACTION TRADING
The TRUTH about MARKET MAKERS
The TRUTH about LEVERAGE