The European Union has published new regulations applying to retail Forex, CFD, and the few remaining binary options brokerages in its territory. If you have an account with one such brokerage, the regulations will affect you when they come into force during the late spring and summer. This article will outline how the new regulations will impact your bottom line.
Details of the New ESMA Regulations
In March 2018, the European Securities and Markets Authority (ESMA), the financial regulator and supervisor of the European Union, announced new regulations concerning the provision of contracts for differences (CFDs) and binary options to retail investors. It is unclear exactly when the regulations will come into force, but some time in May or June 2018 looks to be the most likely date, and Forex and CFD brokerages located within the European Union (including the United Kingdom, for the time being) will be forced to comply. The regulations will need to be renewed by ESMA every three months to remain in force over the long term.
The regulation concerning binary options is very simple: they may not be sold. In simple terms, this is the end of binary options as a product sold from within the European Union.
The regulations concerning CFDs are more complex but still relatively straightforward. Firstly, there is some confusion as to what exactly is a CFD, with many traders thinking that spot Forex is not considered a CFD and will therefore be exempt from the new regulations. They are wrong: spot Forex is technically defined as a CFD. In fact, every asset you see available for trading at Forex / CFD brokers will most likely be subject to the new regulations.
The new regulations will implement the following changes for retail client accounts (more on who is a retail client; later).
-
The maximum leverage which can be offered will be 30 to 1. That will apply to major currency pairs such as EUR/USD, GBP/USD, USD/JPY, etc.
-
Other currency pairs, major equity indices, and gold will be subject to a maximum leverage of 20 to 1.
-
Individual equities cannot be offered with leverage greater than 5 to 1.
-
Cryptocurrencies are subject to a maximum leverage of 2 to 1.
-
Brokers will be required to provide negative balance protection, meaning it will be impossible to lose more money than you deposit.
-
Brokers will be required to close a clients open positions when the account equity reaches 50% of the required minimum margin by all open positions. This ;margin call; provision can be tricky to understand, so will be explained in more detail later.
-
Bonuses or any other form of trading incentives may not be offered.
-
Brokers will be required to display a standardized risk warning which will include the percentage of their clients who lose money over a defined period.
Understanding the ;Margin Call; Regulation
The best way to understand the 50% margin call provision is to use an example. Imagine a client opens an account with a Forex broker, depositing ;100 in total. The client opens a short trade in EUR/USD, by going short one mini-lot (one tenth of a full lot). One full lot of EUR/USD is worth ;10,000, meaning one mini-lot is worth ;1,000. To find out the minimum margin required to support that trade, we divide the size of the trade (;1,000) by 30, which comes to ;33.33. This is the minimum required margin to maintain the trade. Half of that amount is ;16.67. Now assume the trade goes against the client, with the price of EUR/USD rising above the entry price. As soon as the price rises far enough to produce a floating loss of ;83.33 (;100 - ;16.67), the broker must close the trade out, even if the trade has no stop loss or has not yet reached the stop loss. In theory, this means that a client;s account can never reach zero. Examples involving multiple open trades will be more complex, but will operate according to the same principles.
What Will This Mean for Traders?
The regulations will only apply to ;retail clients;, so you might try to apply to be classed as a professional trader. To get a broker to classify you as anything other than a retail client, you will have to show you have financial qualifications, a large amount of liquid assets, plenty of experience trading, and usually that you also trade frequently. Most traders will be unable to qualify, although it is worth noting that one London-based brokerage, IG Group, has stated that their proportion of clients now classified as recently increased from 5% to 15% of their total customers.
The major impact these regulations will have on traders is simple ndash; the maximum trade size they can possibly make at brokers regulated in the European Union will shrink. Many will say that the maximum leverage limits still offer far more than any trader could need, and I agree. I am wary of leverage and I hate to see anyone using leverage greater than 3 to 1 for Forex under any conditions, or any leverage at all for stocks and cryptocurrencies. Commodities can also fluctuate wildly in value. Too many people forget that the biggest danger in leverage is not overly large position sizing, it is that a ldquo;black swan rdquo; event such as the CHF flash crash of 2015 could happen and wipe out your account through huge price slippage. However, there is another factor that is widely forgotten: why assume that a trader rsquo;s account at one Forex broker is all the money they have in the world? For example, a trader might have $10,000 in the bank. If they deposit $1,000 at a broker offering maximum leverage of 300 to 1, they can trade up to $300,000. At a leverage limit of 30 to 1, that trader will have to deposit their entire $10,000 fund to trade at the same size. In a real sense, that trader might now have to take on more risk to operate in the same way, because if the broker goes bust, while beforehand they might lose $1,000 now they could lose $10,000! Even without negative balance protection, that broker would still have to come after them to try to get an extra $9,000 which they theoretically risk. Yet we saw after the CHF crash that brokers don rsquo;t come after every single client whose losses exceeded their deposit, due to legal costs and reputational issues. This shows that although the stated purpose of the regulation is to protect traders from excessive losses, the story is not as simple as you may think.
Beyond having to deposit more margin, and automatic margin calls, the other major change for traders will be that they will enjoy negative balance protection. This is a positive development which hopefully will make brokerages focus more heavily on the risks they are taking with their business model in the market. At the same time, a possible side effect of the new regulation is the potential increase in average deposits, leading to brokerages being more stable and better capitalized with client funds. Two final notes: brokerages will have to report on their websites the percentages of clients who are losing and making money, although the period over which the statistics must refer to is currently not clear. This will help to shed light on the debate over what percentage of retail traders are profitable, although some brokerages have already released what they claim to be accurate statistics showing that clients with larger account sizes tend to perform better as traders. Additionally, bonuses and promotions will be banned. I welcome this, as not only do they trivialize the serious business of trading, they are almost always a trick offering the illusion of free money whilst preventing traders from withdrawing any profits until a large number of trades are made (read the fine print the next time you squo;).
What If Yoursquo;re Not Happy Remaining in the EU?
Traders with accounts at affected brokers who cannot obtain professional status classification and feel they really need higher leverage than the ESMA limits outlined above might look for a solution by opening accounts with brokers outside the European Union. The most obvious destination would be Australia or New Zealand, where it will still be possible to find reasonably well-regulated Forex brokerages offering leverage in the range of 400 to 1. A recent development that is not talked about much is the growing difficulty of transferring funds to and from Forex brokerages in less tightly regulated jurisdictions. You might decide to open an account with a brokerage in Vanuatu, but you may find that a bank within the European Union might just refuse to send your money there for a deposit. This means that going far offshore, depending upon where you live, may not be a feasible option. In any case, the new regule impossible to live with, and overall there is a compelling case that they are a net benefit to any trader, so why migrate?
How to Build a Winning Trading Plan | Trading Forex
You have probably heard it before: every trader should have a winning trading plan, and they should follow it. I am saying it here, again, but I am going to explain how to go about actually making the plan, and how exactly to follow it. Many traders make the mistake of just trying to get something down on paper as a guide. This is an admirable intention, but the true reason why a winning trading plan (which is always a written trading plan) is useful is because it is the very act of making a personalized plan that burns into a traders mind the “why” and not just the “how”. Knowing “why” you are doing what you are doing, instead of just knowing how, is the key to avoiding common trading mistakes.
Some people think that it is only day traders that need written trading plans. In fact every style of trader needs it.
It is really important to emphasize that many traders get to a point where their analysis is pretty good: good enough to know what they should be trading and in what direction. The problem is that although you would expect this to be enough, it is not enough to make money – at least not for most people, because they fall down on execution. It is in overcoming that final hurdle of executing trade entries and exits that a written trading plan is really most helpful.
Initial Questions to Answer
1. What is your “edge” that you are going to try to use to make money? Do you believe that the direction of the Forex market can be predicted? If so, how? Will you use trend following, mean reversion, or some combination of the two? Will you use fundamental and sentiment analysis or just pure numbers?2. How much money can you both want and afford to risk trading Forex in your trading plan?
3. Which is the best Forex broker for your account size, country of residence/citizenship and trading style?
4. What is your risk management strategy going to be? What will your stop loss be based upon?
5. Make some kind of back test covering many years and calculate best case, worst case, and average case scenarios for your trading account. Can you handle the worst case?
Size Your Risk Per Trade Based Upon a Worse than Worst Case From these Results
6. Which currency pairs are you going to trade? How many trades will you have open at any one time maximum?
7. How much discretion are you going to allow yourself in picking currency pairs, opening trades and exiting trades? This is very important. How much will be based upon hard and fast rules?8. Will you manage open trades? If so, how?
9. How much of your time will you devote to trading? Will you be a day trader, swing trader, position trader or some combination of these?
Once you have thought about and answered these questions – and you should give them considerable thought and work – you should be in a position to begin writing your winning trading plan, which must be completely comprehensive and have a good, well-reasoned answer to every possible question.
Writing Your Trading Plan
Your trading plan must cover everything and be in writing. A winning trading plan must contain the following:1. How you will decide which pairs to trade.
2. The maximum positions at risk you can have at open at any time.
3. Any daily, weekly, or monthly loss limits you have decided to apply (e.g. once 0.50% of account equity is lost in a trading day, stop trading for the rest of that day).
4. Trade entry strategy, including position size and stop loss.
5. Whether you will manage open trades actively or not.
6. Trade exit strategy.
7. Where you are going to use your own discretion, which prices are going to make you do what – i.e. if price trades above 1.1000 for an hour, you will consider exiting from half of the position size, but if it does not, you will keep the trade open as normal.
8. How often you will review your trading and review your trading plan (this is very important). No plan should be static.
Reviewing Your Trading Plan
At the end of every trading session if you are a day trader, or otherwise at the end of every week, you should take notes, focusing on how well you were able to stick to the plan, and whether the “winning trading plan” covered everything that happened. Were there moments where you were not sure what to do, as in really confused and not just indecisive? If so, then your trading plan needs to be changed to allow for these eventualities. Also, you may find that parts of your plan sounded OK in theory, but where just too difficult or emotionally painful to implement in real time with real money. Think hard about whether there is an easier way to do things. Losses are inevitable in Forex trading, but they can be managed to some extent.Secondly, you should keep an eye on your profits or losses. Are they much worse or better than your back testing suggested? If so, why do you think that is? Work on fixing the problem. A winning trading plan is one that wins over the long term, after all.
It is vital that traders constantly work on reviewing and improving their trading. It is a crucial habit of all consistently successful Forex traders.
Source
How to Build a Winning Trading Plan | Trading Forex
You have probably heard it before: every trader should have a winning trading plan, and they should follow it. I am saying it here, again, but I am going to explain how to go about actually making the plan, and how exactly to follow it. Many traders make the mistake of just trying to get something down on paper as a guide. This is an admirable intention, but the true reason why a winning trading plan (which is always a written trading plan) is useful is because it is the very act of making a personalized plan that burns into a traders mind the “why” and not just the “how”. Knowing “why” you are doing what you are doing, instead of just knowing how, is the key to avoiding common trading mistakes.
Some people think that it is only day traders that need written trading plans. In fact every style of trader needs it.
It is really important to emphasize that many traders get to a point where their analysis is pretty good: good enough to know what they should be trading and in what direction. The problem is that although you would expect this to be enough, it is not enough to make money – at least not for most people, because they fall down on execution. It is in overcoming that final hurdle of executing trade entries and exits that a written trading plan is really most helpful.
Initial Questions to Answer
1. What is your “edge” that you are going to try to use to make money? Do you believe that the direction of the Forex market can be predicted? If so, how? Will you use trend following, mean reversion, or some combination of the two? Will you use fundamental and sentiment analysis or just pure numbers?2. How much money can you both want and afford to risk trading Forex in your trading plan?
3. Which is the best Forex broker for your account size, country of residence/citizenship and trading style?
4. What is your risk management strategy going to be? What will your stop loss be based upon?
5. Make some kind of back test covering many years and calculate best case, worst case, and average case scenarios for your trading account. Can you handle the worst case?
Size Your Risk Per Trade Based Upon a Worse than Worst Case From these Results
6. Which currency pairs are you going to trade? How many trades will you have open at any one time maximum?
7. How much discretion are you going to allow yourself in picking currency pairs, opening trades and exiting trades? This is very important. How much will be based upon hard and fast rules?8. Will you manage open trades? If so, how?
9. How much of your time will you devote to trading? Will you be a day trader, swing trader, position trader or some combination of these?
Once you have thought about and answered these questions – and you should give them considerable thought and work – you should be in a position to begin writing your winning trading plan, which must be completely comprehensive and have a good, well-reasoned answer to every possible question.
Writing Your Trading Plan
Your trading plan must cover everything and be in writing. A winning trading plan must contain the following:1. How you will decide which pairs to trade.
2. The maximum positions at risk you can have at open at any time.
3. Any daily, weekly, or monthly loss limits you have decided to apply (e.g. once 0.50% of account equity is lost in a trading day, stop trading for the rest of that day).
4. Trade entry strategy, including position size and stop loss.
5. Whether you will manage open trades actively or not.
6. Trade exit strategy.
7. Where you are going to use your own discretion, which prices are going to make you do what – i.e. if price trades above 1.1000 for an hour, you will consider exiting from half of the position size, but if it does not, you will keep the trade open as normal.
8. How often you will review your trading and review your trading plan (this is very important). No plan should be static.
Reviewing Your Trading Plan
At the end of every trading session if you are a day trader, or otherwise at the end of every week, you should take notes, focusing on how well you were able to stick to the plan, and whether the “winning trading plan” covered everything that happened. Were there moments where you were not sure what to do, as in really confused and not just indecisive? If so, then your trading plan needs to be changed to allow for these eventualities. Also, you may find that parts of your plan sounded OK in theory, but where just too difficult or emotionally painful to implement in real time with real money. Think hard about whether there is an easier way to do things. Losses are inevitable in Forex trading, but they can be managed to some extent.Secondly, you should keep an eye on your profits or losses. Are they much worse or better than your back testing suggested? If so, why do you think that is? Work on fixing the problem. A winning trading plan is one that wins over the long term, after all.
It is vital that traders constantly work on reviewing and improving their trading. It is a crucial habit of all consistently successful Forex traders.
Source
How to Build a Winning Trading Plan | Trading Forex
You have probably heard it before: every trader should have a winning trading plan, and they should follow it. I am saying it here, again, but I am going to explain how to go about actually making the plan, and how exactly to follow it. Many traders make the mistake of just trying to get something down on paper as a guide. This is an admirable intention, but the true reason why a winning trading plan (which is always a written trading plan) is useful is because it is the very act of making a personalized plan that burns into a traders mind the “why” and not just the “how”. Knowing “why” you are doing what you are doing, instead of just knowing how, is the key to avoiding common trading mistakes.
Some people think that it is only day traders that need written trading plans. In fact every style of trader needs it.
It is really important to emphasize that many traders get to a point where their analysis is pretty good: good enough to know what they should be trading and in what direction. The problem is that although you would expect this to be enough, it is not enough to make money – at least not for most people, because they fall down on execution. It is in overcoming that final hurdle of executing trade entries and exits that a written trading plan is really most helpful.
Initial Questions to Answer
1. What is your “edge” that you are going to try to use to make money? Do you believe that the direction of the Forex market can be predicted? If so, how? Will you use trend following, mean reversion, or some combination of the two? Will you use fundamental and sentiment analysis or just pure numbers?2. How much money can you both want and afford to risk trading Forex in your trading plan?
3. Which is the best Forex broker for your account size, country of residence/citizenship and trading style?
4. What is your risk management strategy going to be? What will your stop loss be based upon?
5. Make some kind of back test covering many years and calculate best case, worst case, and average case scenarios for your trading account. Can you handle the worst case?
Size Your Risk Per Trade Based Upon a Worse than Worst Case From these Results
6. Which currency pairs are you going to trade? How many trades will you have open at any one time maximum?
7. How much discretion are you going to allow yourself in picking currency pairs, opening trades and exiting trades? This is very important. How much will be based upon hard and fast rules?8. Will you manage open trades? If so, how?
9. How much of your time will you devote to trading? Will you be a day trader, swing trader, position trader or some combination of these?
Once you have thought about and answered these questions – and you should give them considerable thought and work – you should be in a position to begin writing your winning trading plan, which must be completely comprehensive and have a good, well-reasoned answer to every possible question.
Writing Your Trading Plan
Your trading plan must cover everything and be in writing. A winning trading plan must contain the following:1. How you will decide which pairs to trade.
2. The maximum positions at risk you can have at open at any time.
3. Any daily, weekly, or monthly loss limits you have decided to apply (e.g. once 0.50% of account equity is lost in a trading day, stop trading for the rest of that day).
4. Trade entry strategy, including position size and stop loss.
5. Whether you will manage open trades actively or not.
6. Trade exit strategy.
7. Where you are going to use your own discretion, which prices are going to make you do what – i.e. if price trades above 1.1000 for an hour, you will consider exiting from half of the position size, but if it does not, you will keep the trade open as normal.
8. How often you will review your trading and review your trading plan (this is very important). No plan should be static.
Reviewing Your Trading Plan
At the end of every trading session if you are a day trader, or otherwise at the end of every week, you should take notes, focusing on how well you were able to stick to the plan, and whether the “winning trading plan” covered everything that happened. Were there moments where you were not sure what to do, as in really confused and not just indecisive? If so, then your trading plan needs to be changed to allow for these eventualities. Also, you may find that parts of your plan sounded OK in theory, but where just too difficult or emotionally painful to implement in real time with real money. Think hard about whether there is an easier way to do things. Losses are inevitable in Forex trading, but they can be managed to some extent.Secondly, you should keep an eye on your profits or losses. Are they much worse or better than your back testing suggested? If so, why do you think that is? Work on fixing the problem. A winning trading plan is one that wins over the long term, after all.
It is vital that traders constantly work on reviewing and improving their trading. It is a crucial habit of all consistently successful Forex traders.
Source
How to Build a Winning Trading Plan | Trading Forex
You have probably heard it before: every trader should have a winning trading plan, and they should follow it. I am saying it here, again, but I am going to explain how to go about actually making the plan, and how exactly to follow it. Many traders make the mistake of just trying to get something down on paper as a guide. This is an admirable intention, but the true reason why a winning trading plan (which is always a written trading plan) is useful is because it is the very act of making a personalized plan that burns into a traders mind the “why” and not just the “how”. Knowing “why” you are doing what you are doing, instead of just knowing how, is the key to avoiding common trading mistakes.
Some people think that it is only day traders that need written trading plans. In fact every style of trader needs it.
It is really important to emphasize that many traders get to a point where their analysis is pretty good: good enough to know what they should be trading and in what direction. The problem is that although you would expect this to be enough, it is not enough to make money – at least not for most people, because they fall down on execution. It is in overcoming that final hurdle of executing trade entries and exits that a written trading plan is really most helpful.
Initial Questions to Answer
1. What is your “edge” that you are going to try to use to make money? Do you believe that the direction of the Forex market can be predicted? If so, how? Will you use trend following, mean reversion, or some combination of the two? Will you use fundamental and sentiment analysis or just pure numbers?2. How much money can you both want and afford to risk trading Forex in your trading plan?
3. Which is the best Forex broker for your account size, country of residence/citizenship and trading style?
4. What is your risk management strategy going to be? What will your stop loss be based upon?
5. Make some kind of back test covering many years and calculate best case, worst case, and average case scenarios for your trading account. Can you handle the worst case?
Size Your Risk Per Trade Based Upon a Worse than Worst Case From these Results
6. Which currency pairs are you going to trade? How many trades will you have open at any one time maximum?
7. How much discretion are you going to allow yourself in picking currency pairs, opening trades and exiting trades? This is very important. How much will be based upon hard and fast rules?8. Will you manage open trades? If so, how?
9. How much of your time will you devote to trading? Will you be a day trader, swing trader, position trader or some combination of these?
Once you have thought about and answered these questions – and you should give them considerable thought and work – you should be in a position to begin writing your winning trading plan, which must be completely comprehensive and have a good, well-reasoned answer to every possible question.
Writing Your Trading Plan
Your trading plan must cover everything and be in writing. A winning trading plan must contain the following:1. How you will decide which pairs to trade.
2. The maximum positions at risk you can have at open at any time.
3. Any daily, weekly, or monthly loss limits you have decided to apply (e.g. once 0.50% of account equity is lost in a trading day, stop trading for the rest of that day).
4. Trade entry strategy, including position size and stop loss.
5. Whether you will manage open trades actively or not.
6. Trade exit strategy.
7. Where you are going to use your own discretion, which prices are going to make you do what – i.e. if price trades above 1.1000 for an hour, you will consider exiting from half of the position size, but if it does not, you will keep the trade open as normal.
8. How often you will review your trading and review your trading plan (this is very important). No plan should be static.
Reviewing Your Trading Plan
At the end of every trading session if you are a day trader, or otherwise at the end of every week, you should take notes, focusing on how well you were able to stick to the plan, and whether the “winning trading plan” covered everything that happened. Were there moments where you were not sure what to do, as in really confused and not just indecisive? If so, then your trading plan needs to be changed to allow for these eventualities. Also, you may find that parts of your plan sounded OK in theory, but where just too difficult or emotionally painful to implement in real time with real money. Think hard about whether there is an easier way to do things. Losses are inevitable in Forex trading, but they can be managed to some extent.Secondly, you should keep an eye on your profits or losses. Are they much worse or better than your back testing suggested? If so, why do you think that is? Work on fixing the problem. A winning trading plan is one that wins over the long term, after all.
It is vital that traders constantly work on reviewing and improving their trading. It is a crucial habit of all consistently successful Forex traders.
Source
How to Build a Winning Trading Plan | Trading Forex
You have probably heard it before: every trader should have a winning trading plan, and they should follow it. I am saying it here, again, but I am going to explain how to go about actually making the plan, and how exactly to follow it. Many traders make the mistake of just trying to get something down on paper as a guide. This is an admirable intention, but the true reason why a winning trading plan (which is always a written trading plan) is useful is because it is the very act of making a personalized plan that burns into a traders mind the “why” and not just the “how”. Knowing “why” you are doing what you are doing, instead of just knowing how, is the key to avoiding common trading mistakes.
Some people think that it is only day traders that need written trading plans. In fact every style of trader needs it.
It is really important to emphasize that many traders get to a point where their analysis is pretty good: good enough to know what they should be trading and in what direction. The problem is that although you would expect this to be enough, it is not enough to make money – at least not for most people, because they fall down on execution. It is in overcoming that final hurdle of executing trade entries and exits that a written trading plan is really most helpful.
Initial Questions to Answer
1. What is your “edge” that you are going to try to use to make money? Do you believe that the direction of the Forex market can be predicted? If so, how? Will you use trend following, mean reversion, or some combination of the two? Will you use fundamental and sentiment analysis or just pure numbers?2. How much money can you both want and afford to risk trading Forex in your trading plan?
3. Which is the best Forex broker for your account size, country of residence/citizenship and trading style?
4. What is your risk management strategy going to be? What will your stop loss be based upon?
5. Make some kind of back test covering many years and calculate best case, worst case, and average case scenarios for your trading account. Can you handle the worst case?
Size Your Risk Per Trade Based Upon a Worse than Worst Case From these Results
6. Which currency pairs are you going to trade? How many trades will you have open at any one time maximum?
7. How much discretion are you going to allow yourself in picking currency pairs, opening trades and exiting trades? This is very important. How much will be based upon hard and fast rules?8. Will you manage open trades? If so, how?
9. How much of your time will you devote to trading? Will you be a day trader, swing trader, position trader or some combination of these?
Once you have thought about and answered these questions – and you should give them considerable thought and work – you should be in a position to begin writing your winning trading plan, which must be completely comprehensive and have a good, well-reasoned answer to every possible question.
Writing Your Trading Plan
Your trading plan must cover everything and be in writing. A winning trading plan must contain the following:1. How you will decide which pairs to trade.
2. The maximum positions at risk you can have at open at any time.
3. Any daily, weekly, or monthly loss limits you have decided to apply (e.g. once 0.50% of account equity is lost in a trading day, stop trading for the rest of that day).
4. Trade entry strategy, including position size and stop loss.
5. Whether you will manage open trades actively or not.
6. Trade exit strategy.
7. Where you are going to use your own discretion, which prices are going to make you do what – i.e. if price trades above 1.1000 for an hour, you will consider exiting from half of the position size, but if it does not, you will keep the trade open as normal.
8. How often you will review your trading and review your trading plan (this is very important). No plan should be static.
Reviewing Your Trading Plan
At the end of every trading session if you are a day trader, or otherwise at the end of every week, you should take notes, focusing on how well you were able to stick to the plan, and whether the “winning trading plan” covered everything that happened. Were there moments where you were not sure what to do, as in really confused and not just indecisive? If so, then your trading plan needs to be changed to allow for these eventualities. Also, you may find that parts of your plan sounded OK in theory, but where just too difficult or emotionally painful to implement in real time with real money. Think hard about whether there is an easier way to do things. Losses are inevitable in Forex trading, but they can be managed to some extent.Secondly, you should keep an eye on your profits or losses. Are they much worse or better than your back testing suggested? If so, why do you think that is? Work on fixing the problem. A winning trading plan is one that wins over the long term, after all.
It is vital that traders constantly work on reviewing and improving their trading. It is a crucial habit of all consistently successful Forex traders.
Source
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