Wednesday, 24 September 2014

Reality Check

Every once in a while you need a reality check.   For my students I start with weekly reporting and then month and quarterly reporting.  You should on a regular basis review your trades and ask yourself the following questions:

1.  In the last month / quarter how many pips did you make?    What was the profit?
2.  If you had losses, what did your technical analysis reveal was your error?
3.  If you had losses, to correct your error(s) what steps will you take?
4.  If you were profitable, what can you do to improve your trading results over the next quarter?
5.  What have you learned over the last month / quarter?

Most traders just wing it and live in a constant state of denial.  They know what they are doing wrong, but fail to correct it.   You and only you can keep yourself in check.   You must be willing to put in the work and effort to analyze the charts, your trades, find your mistakes, and correct them.