This article looks at the evaluation of your foreign exchange trading success.
It is important that you know how to evaluate your foreign exchange trading success. If you do not know how to do this then you will not be able to determine whether or not you are successful on the market. There are a number of ways that you can evaluate your foreign exchange trading success. The first is through the use of your foreign exchange trading goals, the second is through the profits you have made and the third is through the consistency of your trading. You need to look at all of these points when you consider the success that you have.
Your Foreign Exchange Trading Goals
The first way that you can determine your success on the market is through your foreign exchange trading goals. The goals that you have are what you are working toward on the market. These goals should have a number of different timeframes that you are working in. When you evaluate your success on the market you should look at how close you are to your goals.
If you have achieved the goals that you should then you are going to be successful on the market. However, if you have not reached the goals that you should have then you are not going to be successful on the market. Of course, this evaluation will only work if the goals that you have for your trading are realistic.
The Profits that You Make
Most traders will determine their trading success by the profits that they have made on the market. This is a good way to look at your success, but it should not be the only way. Having profits from your trading does not mean that you are trading correctly. When you look at the profits you have made you need to calculate the total profits and the total losses that you have.
You will then remove the losses from the profits. This will give you the net profit or loss that you have made on the market. If you are left with a positive figure then you are going to have a profit on the market and can consider this to be a success. If you have a negative amount then you have made a loss on the market and this is not viewed as a success.
The Consistency of Your Trading
One of the ways that you should evaluate the success that you have on the market is through the consistency of your trading. When you look at this you will need to consider your trading journal, the way you have completed your trades and the strategy you are using. To determine your consistency and the success you have on the market you need to calculate how many trades you have done where you traded according to your plan and how many trades have been completed with diversions from the plan.
If you have more trades where you stuck to your plan then you will be successful on the market. If you have more trades where you diverted from your plan then you are not successful on the market.
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