How To Keep Track Of Your Forex Trades

Successful forex trading requires that you keep a close eye on the
various business aspects. It may be overwhelming to keep in mind all
these activities and transactions. For this reason, it is essential to
have a system of analyzing and evaluating your various actions. The
trading log is an important tool in forex trading. It assists you in
recording and keeping track of all your important tasks and
transactions. It is a very effective and efficient system that will
save you the time and energy that goes into all the trading chores
when business is booming.

A forex trading log can be a simple tabular grids with entries such as
the date, the price, number of lots opened, exit price, initial
protective stop level, commodity, quantity and so on. Although most
traders have been using personal diaries as the trading log, there are
standard logs which have been designed specifically for forex trading.
Some logs are in book form while others are digital. Both of them may
have the same formats but vary with convenience and flexibility.

With the digitalization of business, book-keeping and accounting
practices, more and more business owners are turning to digital
trading logs. Spreadsheet programs can make a very good trading log
for your business since they come with a host of computing and data
management capabilities. Updating figures in the log can be easily
automated allowing you a great deal of flexibility. Some of the
commonly used spreadsheet programs which can be used to create a
simple trading log include the Microsoft Excel and The Lotus 1-2-3.

Forex trading software available in the market may help you to carry
out the various forex related tasks one of which is keeping an
up-to-date log book. The software that you purchase is likely to have
market forecasting and analysis tools and order as well as management
capabilities; which makes it a good package to manage your forex
transactions.

A good trading log will optimize your trading business by eliminating
weaknesses. The entries and exits that are to be recorded on the log
book should be determined before hand. Otherwise, it will be hard to
know which trades are doing well and which one's aren't doing well.
There should be an area where remarks and comments can be made after a
fixed trading period. These will help you when making key decisions
about what strategies to put in place to ensure that your's profitable
trading business remains so.