Another application of this table is analyzing notes. If you’ve noted here and there that there were some mistakes made with trading some particular cases and total profit could become, say 700 pips, but you’ve earn just 420 pips – you will find out that with this table, as well as the reasons for mistakes and after some time will be able to eliminate them. So, that could be done with any pattern or context on any time frame and in any markets. All that you have to foresee is comfortable ranging at different parameters, so you could analyze it. You may add some other columns and rows that could be useful personally for you. This was just an example. Speaking about dry statistical numbers – they are also very useful. For example, for considerable period of time you have 65% of profitable trades. Suddenly you see that your ratio has dropped to just 50%. That gives you a specific period of time to analyze – you know where to dig. Second, you easily could find the reason. If you follow to your trading plan and didn’t make any mistakes – the reason is in the trading system – wrong context, wrong risk management, stop placement or something else. Another case could be as dropping of money profit within the same win/loss ratio, or vice versa – dropping win/loss ratio but increasing in overall profit. By scrutiny of these numbers you may come to the conclusion that, for instance, your system mostly loses money during a ranging market and makes money during a trending market, or vice versa. This lets you make adjustments and improve it. Without such a tool as a trading journal you can’t improve your trading skills or even find the way how to improve it. You may not even see the necessity of this improvement. P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them on the next page and Sive should answer soon. Note: FPA ranks are earned in the battles against scam, not in the classroom.