Trading Journal Statistics
As you can see above, it is crucially important to have a good view of your trading performance as it helps you keep track of your progress as a trader towards being a full-time trader. From the above example, we can see that this trader tends to generate about an average of 5% per month for the first 6 months of his trading. Imagine you are this trader and you need to replace your income of $5,000 every month. With a 5% return you would need to have an account size of $100,000 to get that. As time goes on and you continuously improve your trading, you realize you are generating 10% per month instead of 5%. This allows you to either bring back $10,000 per month or allow you to free up $50,000 of your capital to be used elsewhere. Ultimately, the decision would be down to what kind of trader you wish to be and what kind of lifestyle you wish to live.
Although I emphasize on the importance of having good statistical overviews of your entire trading approach, I cannot emphasize enough (and I have emphasized quite a lot already) on the importance of being able to drill down to the small little details to greatly improve your trading. The small details are what makes or breaks a trader. No one said it was going to be easy to be a successful trader. There’s a reason 95% of traders lose money – it is because they don’t take trading as a serious business. So the path for you is not going to be easy – I will not sugar coat anything – you are going to need a hell lot of discipline, determination and guidance to really become this top 5% of traders who are profitable. You can see in the approach we have here at The Forex Army just how much effort we put towards this.
Okay, I get it. A trading journal is important. How do I get started?
Well, it’s a good thing we have created a comprehensive trading journal video tutorial and written tutorial for you. Be sure to go through it thoroughly so that you learn how to fully harness the powers of our amazing trading journal.