A good and clear record can save your life if you are a trader. After each and every trading day, the trader spends a good amount of time going through all the transactions processed along with the subsequent results. This helps him analyze the actions taken and decide when one should be repeated and which one to be avoided.
The records are a must. A detailed trader has everything written down. Keeping impeccable records is a symbol of a careful trader. This is how profits are made and mistakes avoided. This enables preparation for the next day as well as drawing conclusions on your choices for the day. The following steps need to be taken to ensure a good record keeping.
Watch out for all signals
Keep a list of the warning signals that have to be looked out for. These signs will tell you when to enter a particular trade and when to quit. The trader must be ready to exit when the time calls for it, even when there is a loss. There is no need to get personal when your stop gets hit. Mistakes will help you become a better trader. Take it in your stride and move on. A trader must learn to not cut off the nose to spite the face.
The exit rules are more important than the entry rules. Knowing when to quit is very crucial in trading. Before entering into a trade, read the signals and see how many conditions of yours are met. These conditions are not based on personal preferences but on actual facts and data.
Keep a journal
There is no guarantee that a particular trade will be successful. Record keeping will help because of the post-mortem effect. In hindsight, you can always cut down on your losses and be proactive about certain signals that you might have missed. Writing down the conclusions in your trading journal will help you learn from your mistakes and prevent them in the future.
There are different factors that persuaded you to enter a trade, exit a trade and avoid it altogether. Make a note of all those factors and try to justify them. This is an excellent way to ensure that no snap decisions or emotional conclusions are being made.
Record keeping can save your losses. Check out the reviews when you read more about QProfit System. Record keeping in the QProfit System is the secret weapon of the trader.