There are several Forex trading strategies in tracing the gains and losses of day trading used by the traders. Some of them will be discussed here.
Tracking your day trading gains and losses is very essential. There is a great possibility of being driven away by your energy and emotions and that will keep you from observing the important movements in the trade. Failure to look after the movements of your trade in the market is not good.
Forex trading is not a game that you’ll only do whenever you want, it is a job that you should give much value and attention. Having a record of your gains and losses is very helpful for you to know if your strategy is working, it also tells if you need to strategize again and it makes your data analyzation easier.
Here are the helpful strategies that you may use in the Forex trading.
Set Up Your Spreadsheet
Using spreadsheets is commonly used in organizing different things to be easily understood. Same with forex , spreadsheet is an easy way to trace your gains and losses. In the columns you may label it with the purchased asset, time of the trade, price and the quantity of what is purchased. Have another column that shows the outcome of the position being closed. Lastly, analyze the performance according to the change of security’s price, dollars, and the returned percentage on your trade.
There are brokerage firms and trading platforms which automatically saves the data of trade for analysis. For an easier way of analyzing, you can download your data and have it into your own spreadsheet or other software. If you have many trades, then this feature is good for you.
Profit And Loss Statement
At the bottom of a trade tracking spreadsheet, there is the quick summary statistics on what happened in the day trading. Trading profits net of commissions, trading profits as a percentage of trading capital, and the ration of winning and losing transactions. Transfer it to another spreadsheet to be able to trace your success in the trade.
Every after the trading week, calculating the hourly wages helps as you reflect if you can still trade or have other plans of work.
The Trading Diary
A trading diary easily keeps your ideas when it pops-up in your mind anytime. It stores up your ideas so that it will not be easily forgotten when you become busy at things.
When it’s time to evaluate your performance and your trading strategy, you can easily go back to your trading diary.
Forex trading works fast, you also have an instrument which will help you to tally trades fast based on the signals coming from the system, based on your ideas, and from interpretation of other traders.