February total P/L: -95 pips (unweighted), or -516 pips (weighted). One word: Pathetic.
I believe it’s an absolute must for a serious forex trader (even if that be an unprofessional trader, a fan like myself) to look back and evaluate his performance over certain periods of times. A good way to measure my performance, I figured out, is in both weighted and unweighted pip terms.
The weighted score shows my skills (or lack thereof) at managing my account in terms of how many lots to enter a trade with. My weighted score for last month (or rather, for the last 3 days of last month) is -516 which is a disaster, and looking at my trades more meticulously I can see I’ve been trying to climb out of a hole I got in by overleveraging (even if within the risk management rules of my forex trading plan). This is definitely a loser’s behavior, and I need to address it most urgently. It takes slow and steady gains, applied with discipline, to become a successful forex trader. That has somehow not been on my mind last Friday. Now that I mention it, why did I trade on Friday, the last day of the month?!
The unweighted score measures purely the performance of my strategy. Since it is -95, I can safely say there’s something wrong with my strategy, too. My strategy (or methodology) last month has shown certain defects such as “placing stops at the wrong levels”, “bad timing”, “some overtrading”, and lack of flexibility (unwillingness to open a position in the other direction when in all probability that would have been the most sensible course of action).
