How To Analyze Your FOREX trading

Trading FOREX is not easy. Most people lose their investment very early in the game. Many people trade as if they were gamblers.
 

One way to help trade more profitable is keeping a track of your trades to find out what works and what might not work so well. We have also found that over time, the same trade made at the same time can be consistently profitable. For example, let's say your technical/fundamental analysis indicate that every Friday morning at 8:30 am - going long the EUR has worked for you in the past.

Then it's a matter of repeating the trades for consistent profit over time. Or, as we have found out - our trading strategy doesn't work well on Monday trades. Knowing this allows us to slowly tweak out trading strategy for better results.

There is a neat application out there to track these common trends. It's called the Forex Trade Analyst and the demo can be found on thieir website: www.ForexTradeAnalyst.com. It is designed to download FXCM trading report, but non-FXCM trades can enter trade manually. Support is good, the company is small and family owned. The demo contains actual FXCM FOREX trades (albeit from a while back) and it clearly illustrates what worked and what didn't work. As in all business projects - it's best to drop what doesn't work and ramp up what does work.

Analyzing your actions is the best way to see if what you are doing needs to be improved or changed. Certainly, your account balance from month to month lets you know if what you are doing makes sense, but getting better is the key to becoming a viable trader and keeping a log of your actions and thoughts is the best way to be able to accurately analyze your actions as a trader.

Of course, in FOREX - nothing is for sure. But the Forex Trade Analyst at least tells you what to stay away from and what to focus on.