Other than your trading method or style, trading is referred as a performance skill. The result depends on your capability of analyzing the market environment, your ability to make a method or plan for trading, your way of executing the plan and lastly, luck.
You need to find out the correct trading method that suits you the most, keeping in mind, who are you, your lifestyle and how you trade. Through market views and philosophy, you have to understand the frame of the markets. You need to make the decisions to act accordingly and manage the risk of your account.
Everyday the forex market keeps on changing. You have to be cautious and have a strict surveillance to look for the changes. This helps you to adjust and create your strategies accordingly.
Missing opportunities and making mistakes can make the market go against your trade. This affects your success rate sternly. Keep a note of certain mistakes, such as, closing trades too early, not taking authorized setups, to enter the wrong entry levels and position sizes and others. Learn from your mistakes and try to avoid them in your future trades.
Here are our 5 important elements of a forex trading journal:
- Potential trading area
- Entry trigger
- Position size
- Trade management rules
- Trade retrospective