Despite the consequences of any trade, as an investor in forex trading currency market, one should always look back and evaluate forex trades, so as to understand the rights and wrongs. Whether you placed successful or losing trades, forex trade evaluation will go a long way in building you as a mature and experienced trader.
When evaluating forex trades, you can ask yourself the following questions:
How did you spot the opportunity for forex trade? When you look back and evaluate your forex trade, see if the opportunity was based on fundamental or technical analysis? Or was it a combination of the two? Looking and assessing forex trade will help identify your strength and weakness as either a fundamental or technical trader.
Did your trading plan execute well? Study your trading strategies and plan. Find out if the position size was adequate to match the risks of the market. Was there a better position where you could have entered? Were you disciplined and patient enough? Were you trading tools right? Ask yourself these questions when evaluating your forex trade and use the answers to improve your position size, entry level, and order placements.
Did you manage the trade well after it was open? Ask yourself honestly whether you really monitored your trades and monitored them well while your trade was active. If yes, then how and if no then what were the reasons behind The answers to those questions will reflect a lot upon your devotion to trading and evaluating forex trade. Modifying your trading plans and adjusting stop-loss orders along the way to protect profits will help you in evaluating your forex trade.
There are no right and wrong answers in this process of forex trade evaluation. You can be as honest with yourself as you want to be. But based on your answers, you will be able to evaluate your forex trade and learn how disciplined a trader you are. Forex trading is all about getting out what you have put into. Evaluating forex trade and trading results regularly is the first basic step to improve your trading skills, advancing your trading styles, make the most of your trading strengths, and reducing your trading weaknesses.