Certainly one of the main things that a trader must do in order to improve his trading performance is to examine his trading performance and analyze his shedding trades. This is so crucial because improvement simply cannot happen until you know which area you must improve. Identifying the issues is already 50% of the perfect solution. Sadly, many people miss to perform this very important task. Needless to say, they don’t see any improvement at all in their trading performance. fusionex
Precisely what is the purpose of researching the trading performance and analyzing it? This job is useful for at least four reasons. Earliest of all it helps us not to ignore our trading rules. All of us check our losing deals to see whether we already follow our trading rules or not. Oftentimes we deviate from your trading rules and make losses because of it. So we really need to determine what made us violate our own trading rules so that we can avoid doing the same blunder in the foreseeable future. The next thing is we can see how we fare with our weaknesses. Every speculator must conquer their own weaknesses. Some people be short of discipline so they must deal with this issue. A lot of other people lack tolerance so they must teach themselves to be patient rather than open positions too early. You can also get people who are afraid of dropping money and cut their profit short. This type of men and women must deal with their own fear for them to make more money rather than cutting the money too early on.
Reviewing the trading performance also lets us see how we fare with other traders or with our previous performance. Oftentimes we think we are performing well but we are not actually executing that good when compared to our peer or the industry standard or our earlier performance. So by doing the work of reviewing our trading performance we keep ourselves in check with our surroundings. The final but not the least is we can find room for improvement. Maybe we can find insights from our mistakes that we didn’t realize before.
Generally there is one important thing that must be stated though. The fact is, sometimes the losing trading that you experienced are not caused by you. In other words, the challenge might be in trading method/plan that you use. As we all know, foreign exchange is always changing even though they say that the history repeats itself. So what do we do if we found out that this is in fact our problem? The answer is, as possible guess, change the trading method. How come? A trading technique is the culmination of the designer’s trading experience. In the event the designer is someone new to the market this individual might not be able to design a trading method that can stand up to various market conditions. If perhaps the designer is a seasoned/professional trader you could expect that his trading method will come out strong against all market conditions. This can be a simple common sense, right? Because of this ,, it is very important to know who designs the trading method that you’re using because this will help you eliminate most problems regarding to your trading.
Picture spending effort, money and time only to learn later that the core of your problem is actually the trading method. Aggravating, right?
Losing trades are not there so that you can mourn your suffered losses. They will also serve as a way so that you can improve your trading performance. Reviewing it and analyzing so what happened will take some time and effort but it pays off. The most important outcome of this task is you can improve your trading performance, become much more efficient, strong in trading and make more money. Make sure to do this important task periodically so you can benefit from this important activity and My spouse and i sincerely hope your trading performance raises.