Ever forgotten why you’re in a trade? Yep – you know you had a really good reason for entering, perhaps it was
a great swing trade on the 4hr chart, but if you look at it now – a couple of hours down the track, everything seems to be wrong. Well, maybe it wasn’t actually a swing trade, maybe it was just a quick trade that looked good on the 15min chart, in which case it’s well overdue and you should be out of it.
This problem escalates with the more trades that you have open at any one time. The problem can be deadly (in a forex trading sense) because if you forget why you’re in a trade, you’ll most likely exit the trade at the wrong time. Doing this basically negates ALL the good trading discipline processes you’ve put in place which are essential in becoming a successful trader.
Is there a simple solution? YES! Keep a good trading log and keep it up to date as soon as you enter a trade, adjust a trade or close a trade. In your trading log, ensure you keep details such as the reason you took the trade. The reason might include the trading strategy you used, the chart that you were working off, and your reasoning behind the stop loss and target points.
One easy way to manage an effective trading log is to use Trade on Track. It has full trade tracking and analyzing features, plus much more.
For further information or to get started today, just visit www.tradeontrack.com
Trade with the right tools and Trade Seriously!