Forex training – Reviewing the day’s events

For those new to trading, taking account of the day’s trading events is important in order to learn from mistakes and continuously improve for long-term success. Credible Forex trading strategies will always educate you on how to recognize entry and exit opportunities but more often than not some traders seem to forget the rules once they go live. This is why it is so important to review your daily mistakes at the end of the day (or at the end of your chosen trading period) when you are still demo trading; and also when you are trading real funds.

When most new traders end their trading day there is always the temptation of leaving their trading station to do anything other than reviewing their trades, assessing their plan and whether or not it was executed flawlessly. As you might have learnt throughout your Forex training- learning from losing trades is even more important that learning from winning trades. Realistically, you cannot learn more from a winning trade – you simply know that your rules work. However, when you have a losing trade you are able to learn something new to add to your list of rules. It then becomes easier to see why the losses occurred.  For example, you may realise that it was down to a lack of discipline, greed or not following the plan – whatever the reason is you need to recognize it and counteract it. By spotting these issues traders can then begin to identify trends in their own trading behaviour and include or preclude habits which are conducive to successful trading.

When reviewing the trading session some of the important Forex training questions traders need to ask themselves include; why the trade worked out, what type of risk and money management was applied to the trade, were there sufficient reward given the amount of risks taken? From a technical standpoint, was the trade taken at the best possible entry point, could the entry have been improved or was the trade entered before there was a signal based on the trader’s rules? If the trader has followed all his/her rules and still got stopped out due to normal market movements then he/she must pat themselves on the back for a job well done. We understand that this might be hard to comprehend but you should grind this into your mind prior to attending any Forex training course or even consider it as a career. However, if the trade utilises opportunities for improvement, then he/she may need to dedicate more/less time to trading create a journal whereby emotions, disciple and areas for improvement can be documented. The whole point of reviewing is to be honest with yourself as it’s your personally diary.