Tracking Your Forex Trading
- Traders can track key statistics using the reporting feature.
- Track your average profits to avoid the trader’s number one mistake.
- Review trades by currency pair to identify the best times to trade.
Every trader should check in and review their past trading history from time to time. Businesses track their profit margins and bestselling products. So it’s only reasonable for traders to calculate their average profits and most profitable currency pairs.
One of the ways traders, can organize their trades is through the use of a trading report. By consistently running a report and keeping just a few key statistics along the way, traders can identify what is working and what isn’t in their trading. Let’s get started by looking at how to run a trading report!
Running A Report
When a trader wants to review their trading, it is important to know how to run a report. To begin, traders using the FXCM Trading Station should find the report tab located at the top of their trading platform as depicted above. From here, a new pop up will prompt you with a few parameters necessary for completing your report.
Reports can go back as far as the inception of your trading account (since open), so it is important to specify the “From” field. This will allow you to select the date your report will begin. The last parameter to select is the format menu. This selection allows you to choose how your report will be displayed on. The FXCM Trading Station allows you to run reports in HTML (web), XLS (Spreadsheet), or PDF (document) formats depending on your preference. Once all of your settings are set to your liking, click the “Run report” button on the bottom of the menu.
Now just give your report a few seconds to compute, and you can begin analyzing your trade data!
Tracking your Trading
Now that you have your report up, you can begin to track your trading. This process can be made easier through the use of a spreadsheet, but you can track this information by hand as well. First, it is extremely important to check for your average profit relative to your average loss. This way you can ensure you are avoiding the trader’s number one mistake through the use of positive risk reward ratios. If you notice your average loss is great than your average profit, it may be time to reconsider your current trading plan.
Another recommendation is to track the times and pairs you tend to trade the most. If you find you are trading mainly USD pairs, during the London and US trading sessions it may benefit you to trade a trending based strategy. Conversely, if you mostly trade the overnight Asia session and your trades are not working out, it may be time to consider a range based strategy.
The reference material above is just a sliver of the information you may discover by running a trading report. The key is you have to run a report to find out where adjustments can be made.
---Written by Walker England, Trading Instructor
To contact Walker, email firstname.lastname@example.org. Follow me on Twitter at @WEnglandFX.
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