In Trading, What Can Be Measured Can Be Managed

[analyst75]

In Trading, What Can Be Measured Can Be Managed

 

I was having a catch up with my good mate and uber cool pad holder Jarrod yesterday – we both share a fascination with human performance. We are both interested in what we can get out of the machine we wander around in all day. As part of this quest he had recently been to see a dietitian who works with several AFL clubs and during the conversation they mentioned that as part of their regime they didn’t count calories. We both thought this was odd for the simple reason that without data you are operating in a vacuum, without knowledge about your calorie intake and in particular your intake of various macro nutrients you are simply guessing. And guessing simply doesn’t count when it come to assessing change.

 

The point here is obvious, if you are not in some way tracking the performance of your trading then you have no means by which to judge your performance. Without having a series of metrics that tell you how you are doing  then you are also operating in a state of ignorance and in many cases delusion. I understand that some people dont want to track their system since this would defeat the entertainment component of trading. Knowing how badly you are doing would take the fun out of it. The same is true for people who struggle with their weight – they dont want to know how badly they are doing. Ignorance is bliss.

 

Performance tracking does not have to be complex – it only needs to tell you a simple story, how many trades did you get wrong, how many did you get right, what is your average profit/loss per trade and do you have more money at the end of the year than at the beginning. All this can be achieved in a spreadsheet with a little bit of playing around.

 

Author: Chris Tate

 

I’d like to end this article with some quotes:

 

 

“Be careful! It doesn't matter how good you are, if you don't use proper risk management you will fail.” - Jarratt Davis 

 

“Having a diversified system does help but it does still make you wary of taking the next trade. But it always seems to be the next trade that you don’t take that turns things around.” – Chris Tate

 

Article reproduced with kind permission of http://tradinggame.com.au

 

www.tallinex.com wants you to make money from the markets 

[Gee Dee]

Thanks for sharing your views. Measuring performance is always essential for ensuring successful trading journey. A trader should try to represent his performance in numerical figure by maintaining trading journals over specified period of time. And when a trader maintains journal and follows economic way he can actually judge how to improve his trading skills. Again, losses have to be managed properly by the currency exchange traders otherwise trading journey can be actually difficult.

[anton.blood]

I always track my trading performance using my broker monthly report. That show me a lot information that i need.

[Sininfinity]

I always track my trading performance using my broker monthly report. That show me a lot information that i need.

 

If I may ask why don't you use a trade explorer? That calculates many things from your trading history.

[boltushkin]

I always track my trading performance using my broker monthly report. That show me a lot information that i need.

I also want to get information about my trades from my Hotforex platform. How can I do that quickly?

[davidblack]

It is a good way to be successful in Forex trading if you can manage your permanence and I always try to manage and check my trading progress with my broker monthly. Forex always can be risky and you can become a successful trader if you have skills and knowledge about it.

 

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[uncle gober]

to achieve success in the forex it is not easy, so traders should be able to become better and more leverage in managing funds and risks that exist in accordance with expectations.

[bearhugs]

Forex trading is indeed the best platform for anyone who wants to earn money. To become a successful trader, you should have persistence, dedication, time, and discipline.

[Namu]

almost all traders' goals are to be able to generate maximum profits to exceed expectations with risks that can be minimized properly. One important thing is that in forex all of them need a process and there will never be an instant.