Trading Evaluation to Optimize Your Trading Performance
The main objective of traders and investors is certainly to achieve profits and increase the value of the capital owned. If not for profit, trading certainly will not be done, right?
Traders or investors use various methods to achieve consistent profits. Many traders study the strategy and method which is most productive and suitable.
To obtain a relevant profit strategy, periodic evaluation is necessary. Is the trading strategy appropriate? Are these strategies still in line with dynamic market conditions?
Why Is Trading Evaluation Important?
The activity of trading evaluation might make many traders upset. They are afraid if the trading results are not on target. By evaluating trading, you have to know what are the good or bad things so that you can improve your trading performance.
Based on Investopedia, an evaluation can help traders and investors greatly. The trading platform used generally has a feature to view trading performance reports that can be adjusted in time.
This trading evaluation works to complete the trading journal. If the trading journal contains strategies and results, the trading evaluation processes statistical trading results data. Then, that traders can find out which strategies are effective or less effective.
How often are evaluations done?
The frequency of evaluations depends on your trading style. Day traders certainly do more transactions than swing traders. If you do less than 5 transactions per month, you should do an evaluation every 3 months. However, if you are a day trader who trades almost every day, then the evaluation is done every month.
Evaluating trading strategies too often does not have a significant impact. It makes a trader upset, unsure of the strategy chosen and often changes strategies.
Read more: World Forex Trader Success Stories (1)
