Then you can combine these different ways of analysis. So, you may come to the conclusion: "Each first week of the each month(except August) it is better to trade butterfly 1.618 on hourly charts of USD/CHF during the overlapping of Europe and US trading sessions. 90% probability profit objective is 0.5 retracement of butterfly, 90% maximum drawdown below 1.618 level is 45 pips" Ok, this maybe looks too detailed and is a bit unrealistic, but your conclusions will not be too different from it. Initially you will have just few points of ranging your performance, but later as your experience will start to grow – more and more specific points for analysis will appear. But do not make it too sophisticated, otherwise you will not have time to trade… Pipruit: Oh, Sir, I understand that this is very important to keep a journal and review it from time to time, but I just foresee how it will be boring. Commander in Pips: Yes, this is not as exciting as trading, and this is hard, real hard. But, will it be even harder to lose all your money, become a loser and forget about trading? In many books, dedicated to trading, keeping a journal compares to athlete’s logs of his training. How he/she performs in time, what skills are improving and which ones still demand improving. There is no secret that training takes significantly more time than games and competitions. English Football Premier League teams (Manchester United, just to name one) spend in training every day at least two times, while they have 1-2 games per week in championship. And players’ job is not just to play official games but doing hard work on the training field. Otherwise they will not take part in the official game. Here, it is the same. “Official” trades on your real account are just a tip of the iceberg – hard work is all the rest and without it your “official trading” will end soon with pitiful final failure Besides, a trading journal is not a girl’s diary of occasional setups for trading – the journal is structured and it lets you to assess every context that you use in trading. The same as with an athlete coach who could return to the past with logs and refresh how he has improved some athlete’s characteristics – goal shooting, for instance, or endurance. 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.