How to Analyse Your Own Trades – A Comprehensive Guide

Trading analysis

Analysing your trades in forex trading is essential for continuous improvement and better decision-making. This comprehensive guide will walk you through the process step by step, helping you assess your trades effectively.

Step 1 – Gather Necessary Data

Collect all relevant data for each trade:

  1. Trade entry and exit points (price and time).
  2. Trade size (lot size or position size).
  3. Currency pairs / Symbol traded.
  4. Reason for entering the trade (fundamental, technical analysis, etc.).
  5. Take-profit and stop-loss levels.
  6. Any additional notes or observations.
  7. Take a screenshot of the trade at time of entry.

Step 2 – Review Your Trading Plan

  1. Assess if each trade adhered to your trading plan.
  2. Evaluate whether the trade was based on valid criteria as per your strategy.
  3. Consider whether you were emotionally influenced or impulsive during the trade.

Step 3 – Categorize Your Trades

  1. Group trades by strategy or approach (e.g., trend-following, breakout, reversal).
  2. Categorize trades as winners or losers.
  3. Identify if any patterns emerge in specific market conditions.

Step 4 – Review Trade Execution

  1. Analyze the entry point:
  • Was the entry based on your strategy’s rules?
  • Did you enter at the desired price level?
  • Were there any signs of slippage?
  1. Evaluate the exit point:
  • Did you follow your predetermined take-profit and stop-loss levels?
  • Could you have exited earlier or later based on market conditions?

Step 5 – Perform Technical Analysis

  1. Chart Analysis:
  • Review the chart for the currency pair/ symbol you traded.
  • Identify any patterns (candlestick, chart patterns) that influenced your decision.
  • Examine support and resistance levels.
  1. Indicators and Oscillators:
  • Assess how well your chosen indicators aligned with your trade decision.
  • Determine if any lagging or leading indicators could be improved.

Step 6 – Conduct Fundamental Analysis (if applicable)

  1. Review the fundamental factors that influenced your trade:
  • Economic data releases.
  • Central bank announcements.
  • Geopolitical events.

Step 7 – Risk and Money Management Analysis

  1. Calculate the risk-to-reward ratio for each trade:
  • Assess if the potential reward justified the risk taken.
  • Analyze if adjustments are needed for future trades.
  1. Evaluate position sizing:

Step 8 – Emotional Analysis

  1. Reflect on your emotions during the trade:
  • Were you confident in your analysis, or did you doubt your decisions?
  • Did you experience fear or greed during the trade?

Step 9 – Keep a Trade Journal

  1. Document your analysis and observations for each trade.
  2. Note what you learned from the trade, whether it was a win or a loss.
  3. Write down any adjustments or changes you intend to make based on this analysis.

Step 10 – Regularly Review Your Trade Journal

  1. Set a routine for reviewing your trade journal (weekly or monthly or number of trades).
  2. Look for patterns in your trading behaviour and outcomes.
  3. Continuously refine your trading strategy based on insights gained from past trades.

Remember, consistent analysis of your trades is crucial for long-term success in forex trading. This guide provides a structured approach to help you make informed decisions, improve your strategies, and ultimately become a more effective trader.

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