It is a well known saying that a man learns from his past mistakes. Every mistake of yours gives an unforgettable experience and a precious lesson for the life ahead. If you are faced with the similar situation in the future, you may not know what to do but you definitely know what not to do. Thus they can get rid of avoidable loss.
Review of Forex Charts:
Keeping record of your transactions and then reviewing it every now and then is referred to as a risk aversion mechanism in Forex trade.Reviewing the charts helps the traders to track down their mistakes. They come to know what went wrong. Therefore they avoid making the same mistake. Thus even if it is not a profitable trade, still it is not a losing one as well. It is an effective risk management technique frequently used in Forex trade.
Missed opportunities:
It is also beneficial to note down the missed opportunities of Forex trade. Sometimes, you miss an important profitable trade opportunity and regret it. But if you review the journal of missed opportunities, then you will know what to do if you have the same scenario in future. Obviously you will not miss it in future. Do not want to repeat the same mistake, right!
Analysis of Strengths:
It is just like seeing an old photo album. It reminds you of your happy and successful moments. It helps you to understand your strengths as well. Your transaction charts are actually your forex trade history. It exposes your own strengths and right decisions that led to profit in past. Such a review boasts your morale. Thus whenever you are feeling low because of loss or unfavorable circumstances and planning to quit Forex trade, such a review will give you confidence to bear the loss. Therefore do not forget to review your charts to do well in your future. Obviously your past and present shape your future, so make it a prosperous one.
