“The fruits of your success will be in direct ratio to the honesty and sincerity of your own effort in keeping your own records, doing your thinking, and reaching your own conclusions.” – Jesse Livermore.
“Upon analysis, a trader may find that if he only concentrates on the trades that do well and let’s go of the other trades, he might actually be successful.”—Randy McKay
This simple little tip will help solve the issue for good.
Ranking your trades for quality
Before you place any new trades, rank each trade for quality. Rank them either an A, B, or C.
A – This is a top-quality trade that fits your criteria and that you really like. It should be obvious that this is an A-grade trade; otherwise it should be ranked a B.
B – This is a trade that fits your criteria and that you like, but something separates it from your best trades. Perhaps the set-up is not great or sentiment is not clear, but otherwise the trade looks good.
C – C quality trades fit your criteria, but there is something wrong. Perhaps you feel uncomfortable about the trade or it does not fit the big picture, or there is a news event around the corner that is troubling you.
After a period of time, you can review your trades by their ranking. You may be surprised when your top-quality trades outperform your lower quality ones.
Next, eliminate lower quality trades to take your trading up a level. Nice and simple.
About the Author
Sam Eder is a currency trader and author of the Definitive Guide to Developing a Winning Forex Trading System and the Advanced Forex Course for Smart Traders (get free access). He is the owner of www.fxrenew.com a provider of Forex signals from ex-bank and hedge fund traders (get a free trial). If you like Sam’s writing you can subscribe to his newsletter.