The Forex market is one of the most exciting trading markets out there. It’s always changing. No two days are the same. But while it’s fun to trade Forex, you can’t just make random trades and hope for the best!  

What you need is a system for success. A toolbox, so to speak. And you need ways to monitor, or track, the market so you can make a profit.  

In other words, you need to know how Forex tracking works. Below, we’ll walk you through what you need to know about Forex tracking, and how to build your own system for success.   

What Is Forex?

Forex is a market for buying and selling currencies. If you’re a Forex trader, you’re hoping to take advantage of exchange rates between currencies around the world. Here’s how it works.   

• A Forex trader buys one currency.  
• They sell back in a different currency. 
• The goal is to make a profit from the exchange rate.  

Forex trading can be tricky, especially if you trade in less common currencies. You’ll also need to know – and follow – certain trading rules. But what’s key to being a good Forex trader is knowing how to “read” the market. It’s knowing how to spot trends and take advantage of them.  

And that’s where the idea of Forex tracking comes in. 

What Is Forex Tracking?

Forex tracking means learning how to monitor what’s happening in the Forex marketplace. Your goals are to: 

• Analyze market trends 
• Consider how currency exchange rates are affecting prices 
• Learn the impact that news stories have on the market  
• Manage your risk by knowing when to trade – and when to play it safe and stay put 

Think of yourself as a detective of sorts. You’re keeping a close eye on how the market moves and shifts. And you’re learning how to make sense of price movements – and use them to your advantage. 

Types of Forex Tracker Tools 

Forex tracking tools help you understand the market and improve your knowledge. Any source of information is a potential tracking tool, but examples include: 

• Economic calendars 
• Forex portfolio trackers  
• News releases 
• Price charts 
• Forex account tracker 

For example, if you’re interested in how current affairs affect the market, you need news and press releases. But if you’re studying your own trades, then you might use a Forex account tracker.  

Benefits of Forex Tracking

The reality is that there’s no reason not to track the Forex market, if this is what you’re trading! But there are a few major reasons why Forex tracking should be a priority.  

• Tracking the market helps you plan your trades. You can decide, in advance, when you might buy or sell.  
• You can make more informed decisions if you know what current events and news stories are affecting the market. 
• The better you understand your own trading performance, the easier it is to improve any “weak” points.  

Types of Forex Tracking

Every trader has their own methods for tracking trades. But broadly, there are two strategies for tracking Forex: using technical tools and looking at fundamentals.

Technical Analysis

Some traders enjoy a technical, very detailed approach to tracking Forex. They’ll use chart patterns, price trends, and other “indicators” to predict what might happen next. They keep detailed records of market shifts and make decisions based on real-time data. 

Technical analysis means reading between the lines, so to speak. You’re looking for patterns to tell you when you might buy, and when you might sell.   

Fundamental Analysis

If technical analysis is all about the details, fundamental analysis means looking at the basics.  

It’s based on the idea that every asset has an underlying baseline value. Although prices might change, this basic value does not change. And in the end, the price will always return to this baseline.  

So, with this approach there’s no need to overcomplicate things. All you need to do is track what could impact an asset’s value at this moment. And then you can buy or sell based on what you’re seeing.  

Traders who prefer fundamental analysis will rely more heavily on calendars and press releases, rather than chart patterns. 

What Is Forex Performance Tracking?

Forex tracking isn’t just about tracking the market. It’s also about tracking your own trading performance.  

Think of your trading portfolio as your own, personal marketplace. You need to know what’s happening – and how it’s performing – or else you could easily lose money.  

How do you track Forex trading performance? The easiest way is through a trading journal.  

Trading journals are your own personal record of every trade you make. They should include details such as: 

• Assets you bought 
• Your trading strategy 
• Assets you sold 
• The outcome of every trade 
• What Forex market tracker tools you used  

You can look back at the data and decide where you did well, and where you might improve. Remember, we’re all on a journey here. You won’t get every trade right – but you can learn from your mistakes. 

Become your own Forex market tracker. The better you understand your own trading history, the easier it is to reach your full potential. 

Forex Tracking Tips

Now we know what Forex tracking means, here are some tips for tracking your own trades. 

1. Decide Your Trading Goals 

First, decide what you want from Forex trading. Questions to ask yourself include: 

• What does “success” mean to you? 
• How much time can you spend trading Forex each day?  
• What tools might you use to track your success?  
• How will you know if you have reached your trading goals? 

Once you know what you’re working towards, you can start moving forwards.  

2. Have a Trading Strategy 

Next, you need a trading strategy. In other words, you need to decide: 

• Whether to use technical, fundamental, or both types of tracking tools 
• How much risk you are willing to accept  
• How much you are willing to invest 
• What tools you will use to manage risk e.g. stop losses

A trading strategy is like a roadmap for success. It matters just as much as any Forex market tracking tool. Because without a roadmap, or a strategy, you can easily get lost.  

3. Use Alerts

It’s a good idea to set up alerts for what matters to you e.g. news releases or price shifts. That way, you can make decisions based on real time market movements.  

Most trading platforms and prop firms have tools you can use to set alerts. Take advantage of them! 

4. Keep the Forex Tracking Process Simple

It sounds obvious, but it’s all too easy to forget this point: keep your Forex tracking technique simple.  

Avoid relying on too many different sources of information, especially when you’re still learning the ropes. Don’t get overwhelmed by too much data.  

Choose a handful of tracking tools and learn them inside-out. And at regular intervals, look at how helpful you find each tool. If you’re not getting much benefit from one method, you can always try another.  

5. Try a Demo Account

Want to hone your tracking skills without losing any money? Then you need a demo account!  

Demo accounts let you use simulated funds to practice trading Forex. You can keep most of your simulated profits – the prop firm only charges a small fee. But in exchange, you get access to knowledge, support, and cutting-edge Forex tracking tools. 

Join the Maven Trading Community | Start Your Journey Today 

Do you want help reaching your full trading potential? Then Maven Trading wants to meet you! As a leading prop firm, we help promising Forex traders like you shine.  

We offer tools and the simulated funds. You bring the talent. And together, we can build a thriving, successful trading community!  

Simply choose your account, pass our challenges, and get verified. It’s that simple. You can be up and running in just a few days!  

So, what are you waiting for? Contact us to learn more about Maven Trading or choose your trading journey now.