After all your years of trading, is there anything you have achieved or are you anywhere near to achieving your goals? If yes, that’s some remarkable trading you have been doing. If not, have you ever analyzed what went wrong? Well, let’s analyze the reasons that hinder your growth.

As traders, we develop habits that we tend to follow throughout our career which may cause direct or indirect harm to our growth. We often forget what exactly we’ve done in the previous trade and are often misguided by our inner instincts which promote losses & sometimes dreadful consequences that are too difficult to handle.

An effective method to overcome this is to maintain a trading journal of both good and bad trades. A trading journal is a valuable repository of your trades through which you can know how your trading habits have been in the past. Also, a trading journal helps you to understand and take stock of any grave mistake you might have committed while trading in the past. It can be anything from closing winning trades early or holding onto a losing trade for too long.

Here are some benefits you could gain from analyzing your worst forex trades.

1. Helps You Understand Your Trading Strategy Better:

There are chances that your trading strategy might be the reason behind your losses. Analyzing if there’s something wrong with your strategy helps you to understand how your strategy works so that you can improvise it if required.

2. Helps You Identify Your Weakness & Pressure Points:

The potential of a trader to identify and overcome his weakness is the quality that makes him complete. Every trader has some kind of fear or pressure points beyond which he becomes unstable and takes impulsive decisions. Looking back at your worst forex trades helps you to recognize your flaws, make necessary changes and move forward as a better trader.

3. Helps You Identify a Pattern:

Your trading journal has a record of all your successes & failures. With the help of that, you can identify what kind of trades have worked in your favor and what did not. You get a clear-cut idea of what kind of trades you should take up in the future. Once you have sorted out the pattern, try to stick to it and enhance it in every way possible.

Analyzing your worst trades sheds light on the erroneous trading methods you have been practicing for so long. Continuing further with the same flawed strategies could end your trading career. Looking back at your trades and correcting the mistakes will boost your career and reach unprecedented trading heights. So, set aside time and try to create a constant balance between trading & analyzing for consistent success.