Having a look at your trading progress on a regular, weekly, or even monthly basis can be less than productive, as you can get obsessed about the natural drawdowns in the ebb and flow of your equity curve. You may have a certain target in mind for your monthly profits, and if you are not reaching that target then you may start to overreach and make trades that you should not be. It is probably best not to check your profit/loss figures too much except on a quarterly basis.
3 months is a decent sample of info to take a look at, presuming that you make an average of at least five or six trades per week; so after a period of a quarter, you ought to have a brilliant idea of how well you are trading.
A drawdown of say, 6 or 8 percent can sometimes feel a bit like the end of the world to new traders and can truly dent your confidence, but these kind of drawdowns are part of the trading process and must be seen as a simply the cost of conducting business.
Of course, if your drawdown gets truly large in a single month,eg 15 or 20 %, then you really should begin to worry, as this would represent serious damage to your trading bank and you need to perhaps review your techniques and results to work out if you are doing something wrong.
In summation, drawdowns of any nature are always tough to take, but with experience, they get better to handle. When your confidence is grown over a significant period of time, it takes more than a minor drawdown to noticeably knock it, so be assured that as you get more experience, trading will get easier and less unpleasant. It's so vital to try and control your feelings when trading forex, and experience and \’screen time \’ will help you to do precisely that.
Jay Gaskell is a staff writer for eForexSystemReviews.com, with a primary focus on supporting visitors who are looking to learn forex trading. Jay\’s been trading for more than ten years now, and is mostly a \’day trader\’ on the mainstream forex pairs.