Do you keep a track record of all your trades?
Keeping good records is a key factor to your success in
trading. In fact, record keeping defines if you are heading toward success or failure
in trading.
Why is that?
By keeping good records a trader will learn from his
mistakes and hopefully he will not repeat them in the future. By doing so a
trader can develop a trading strategy from his own trading experience. Records will
also help a trader to reach a high level of self-discipline which is crucial in
trading. Keeping a track record will contribute to your awareness helping you
know yourself better as a trader.
So, what’s a track record and what it should include?
A track record is an excel sheet with all your
trades. To make it easier every sheet will represent one month of trading, each
line will represent a single trade and every column will represent a different
data of the trade. The basic version must include: Trade number, strategy or reason
for entering, time basis or chart (weekly, daily, hourly etc.), Entry date, Deal
type (Long or Short), Symbol, Size, Entry price, Stop loss, Take Profit, Exit
date, Exit price, Profit or Loss and Conclusions. A trader may include additional
information that he consider as important and valuable.
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