Becoming a Better Trader

Many traders in the financial market often lose their investments. Some other traders are lucky and make huge profits.

This article is written out of the experience I gathered in my endeavor to discover how many forex traders make profits.  

The main items of my findings where generated from the personal interviews, articles, publications and books by successful traders. It wasn’t until I started my research, that I quickly realized just how much has been and no doubt will continue to be written about trading and the psychology of trading. So much of the literature is actually gibberish, as not all writers who claim to know forex trade actually do. 

Every one of the successful traders I interviewed stressed the importance of keeping a journal of their trades. What you would normally find in their journal are the date, time, what they traded, buy or sell, price, indicators used including levels and/or figures, trends (long, medium and short) and an overall description of why they took the trade. It is also compulsory that the journal entries included notes about their trade. Which trade actions resulted in profit? What is responsible for the losses incurred? 

Now comes the interesting part. All the successful traders interviewed, admitted that they always referred to their previous journal entries, on a regular basis. The traders always made it a habit to reinforce their past winning moves and restrain from repeating those moves that brought them losses. 

Certain rules guide the entering and exiting of trades. One of these rules that you must not fail to adhere to is the art of making entries of the details of your transactions, in your journal. 

I hope you will all learn something from this and if you aren’t already maintaining a record of your trades, and then please start doing so from now on. Also regularly go over your records. When you do all these, your trade will improve.