Jun 27 2012
It is a well documented fact that within the â€œbusinessâ€ of trading the financial markets, as much as 90 % of the participants lose and continue to lose money. So if 90 % are losing, that therefore means that 10% are gaining each and every time. In order to improve my own 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 making money from the unfortunate remaining 90% (The Losers) who donâ€™t.
Every one of the successful traders I interviewed, stressed the importance of keeping a journal of their trades. They would 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 criteria, and if it was a losing trade, why had it turned out to be like this and any contributing factors. Trading is very disciplined with definite rules for entering and exiting trades. These rules must be adhered to at all times and one of the rules is entering all details about the trade in the journal, making no exceptions. Also regularly go back over your records on a regular basis. You will see a marked improvement in your performance.
Tags: basis, Better, Business, experience, importance, improvement, journal, money, performance, record, risk, trade, trader, Trading
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