If you are going to become a better trader you will need to use a system to trade with. You will need to follow a solid set of rules that work and you have back tested. How do you back test? Just by doing the simulated trading you are back testing the trading system.
If you are able to make the same good trades time after time then you have a chance of becoming a good trader and the system you are using is a good one. You need to know why you are making good or bad trades. Your trading system should help you figure this out like the trade tracker. If you do not have a trading system you will have a problem determining why you are losing and your trades are being made off the cuff.
Even if you are trading with a good system you will need to use some judgment and get out of a trade if it doesn’t feel right. If you do not cut your winners short on a consistent basis then losing once in a while is ok. If your system is working for you then you should try and take all you see because you never know which signal will be one of the big winners.
A system is not just getting in the market; it should give you signals to get out and use stop losses as well. What is good about knowing how and when to exit is you do not have to worry about getting out too soon or too late: you let the system tell you what to do.
To back test your trading system you just need to practice simulated trading. This will tell you if you can read signals and make good calls when trading. Successful traders who put the work into doing what it takes to learn to trade, will come out ahead. Trading plans, trade journals and simulated trading are all keys to becoming a winning trader.
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