It is a well documented fact that in the "business" of trading the financial markets, as much as 90 percent of the participants lose and continue to lose money. So if 90 pc are losing, that so means that 10% are gaining each time. In order to improve my personal trading record, I deliberately set out to try and discover what it was I had to do to become one of the 10% (The Winners) who are consistently earning profits from the unfortunate remaining 90% (The Losers) who don't. My research and inquiries was to speak to as many successful traders as I could, to read as many articles, publications and books which have been written by successful traders.
It wasn't until I started my research, that I speedily realised quite how much has been and without doubt may continue to be written about trading and the psychology of trading. What's rather more shocking is the amount that has been written by so called "gurus" who really haven't made any heavy sums of money from a business that they should be professionals in. I will tell you about some of my discoveries in relation to these authors in future articles. It's my plan to publish my findings in a chain of articles over the following 3 months and I am hoping you can learn and improve your own trading from implementing the data which I release.
I actually trade the Forex market now but I've tried trading stocks, futures, commodities and options. I will be covering the explanations for focussing on foreign exchange in a later article but in the meantime let me tell you about one of my many discoveries. Every one of the successful traders I interviewed, stressed the significance of keeping a book of their trades. They'd record 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 was also imperative that the journal entry included notes about the trade after the event.
If it made money what was the factors, and if it's a losing trade, why had it turned out to be like this and any contributing factors. Now comes the engaging part. Everyone of them said that they regularly reviewed their book (some weekly and some monthly) but everybody quite categorically looked back over past trades. Doubtless learning from their mistakes and to improve and repeat on their successful trades. Trading is very disciplined with definite rules for entering and exiting trades. These rules must be stuck to at all times and one of the rules is entering all details about the trade in the book, making no exceptions.
Start maintaining a record of your trades, then please start to do so from now on. Also continually go back over your records often. You'll see a marked improvement in your performance.
It wasn't until I started my research, that I speedily realised quite how much has been and without doubt may continue to be written about trading and the psychology of trading. What's rather more shocking is the amount that has been written by so called "gurus" who really haven't made any heavy sums of money from a business that they should be professionals in. I will tell you about some of my discoveries in relation to these authors in future articles. It's my plan to publish my findings in a chain of articles over the following 3 months and I am hoping you can learn and improve your own trading from implementing the data which I release.
I actually trade the Forex market now but I've tried trading stocks, futures, commodities and options. I will be covering the explanations for focussing on foreign exchange in a later article but in the meantime let me tell you about one of my many discoveries. Every one of the successful traders I interviewed, stressed the significance of keeping a book of their trades. They'd record 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 was also imperative that the journal entry included notes about the trade after the event.
If it made money what was the factors, and if it's a losing trade, why had it turned out to be like this and any contributing factors. Now comes the engaging part. Everyone of them said that they regularly reviewed their book (some weekly and some monthly) but everybody quite categorically looked back over past trades. Doubtless learning from their mistakes and to improve and repeat on their successful trades. Trading is very disciplined with definite rules for entering and exiting trades. These rules must be stuck to at all times and one of the rules is entering all details about the trade in the book, making no exceptions.
Start maintaining a record of your trades, then please start to do so from now on. Also continually go back over your records often. You'll see a marked improvement in your performance.
About the Author:
Todd Watson trades in Forex, tests Binary Option strategy and is always hunting for the next best Forex Robot.
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