Forex trading is often glamorized as a quick way to financial freedom, but the reality is far from it. Success in forex requires discipline, strategy, and constant self-evaluation. That’s where “The Forex Test” comes in — a simple but powerful tool to help you assess your trading habits and skills.
In this article, we’ll break down every aspect of the test, explain why each point matters, and show you how to move from being an average trader to an excellent one. Let’s dive deep and uncover how you can turn those forex scores into a profitable reality.
1. What Is the Forex Test and Why Does It Matter?
The Forex Test is essentially a self-assessment checklist that scores you based on six critical habits of successful traders. Each point represents a pillar of sustainable trading. The total score determines where you stand:
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Less than 10: Needs serious work. You’re either gambling or missing key fundamentals.
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More than 15: Average/Good trader. You’re on the right path but still have room for improvement.
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More than 18: Excellent trader. You’re disciplined, consistent, and professional in your approach.
Think of it like a health check-up. You wouldn’t skip your annual physical, right? Similarly, ignoring self-assessment in trading is a recipe for disaster.
2. The Six Pillars of the Forex Test
Each point in the test is a mirror reflecting your strengths and weaknesses. Here’s what each means — and how to improve.
2.1 You Use a Trading Plan (Score: 5)
A trading plan is your roadmap. Without it, you’re just guessing.
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Why It Matters: It keeps emotions out of your decisions and provides structure.
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How to Improve: Write down entry/exit rules, risk management guidelines, and review them weekly.
2.2 You Have a Working Strategy (Score: 5)
A plan without a proven strategy is useless.
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Why It Matters: Consistency comes from a strategy that has been tested and refined.
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How to Improve: Backtest your strategies, analyze past trades, and adjust based on data, not gut feelings.
2.3 You Do Not Risk More Than 10% (Score: 3)
Overleveraging is the fastest way to blow an account.
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Why It Matters: Risking less keeps you in the game longer and builds confidence.
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How to Improve: Use proper lot sizing and never risk more than 1-2% of your balance per trade.
2.4 You Are Profitable (Score: 2)
Being in the green is the ultimate validation.
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Why It Matters: Profitability proves your strategy and discipline work.
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How to Improve: Focus on risk-reward ratios and avoid revenge trading.
2.5 You Let Your Trades Run (Score: 2)
Cutting winners too early is a common mistake.
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Why It Matters: Big wins often come from trades you allow to develop fully.
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How to Improve: Set realistic targets and trust your analysis.
2.6 You Use a Trading Journal (Score: 3)
Your trading journal is your personal coach.
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Why It Matters: It shows patterns in your behavior and strategy flaws.
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How to Improve: Log every trade — entry, exit, emotions, and outcomes. Review it weekly.
3. How to Calculate and Interpret Your Score
Add up your points from each pillar.
| Score | Meaning | Action Plan |
|---|---|---|
| <10 | Needs some work | Focus on fundamentals like planning and risk management. |
| >15 | Average / Good Trader | Sharpen consistency and refine your strategy. |
| >18 | Excellent Trader | Maintain your habits and explore advanced trading concepts. |
Ask yourself: Are you closer to a gambler or a disciplined trader? The answer lies in your score.
4. The Reality of Scoring Below 10
Scoring less than 10 isn’t the end of the world — but it’s a wake-up call. It means you’re treating forex like a casino.
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Typical Signs:
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No plan or journal.
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Random entries and exits.
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Overleveraging to chase quick wins.
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Action Steps:
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Start small with a demo account.
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Write a simple plan with clear entry/exit rules.
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Limit your risk per trade to 2%.
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5. From Average to Excellent: The Path Forward
If you’re scoring between 15 and 18, you’re doing well, but there’s room to improve.
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Refine Strategies: Look at your journal to see what’s working.
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Work on Discipline: Emotional control is what separates good traders from great ones.
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Stay Updated: Market conditions change. Keep learning and adapting.
6. The Role of Psychology in Your Score
Trading isn’t just numbers; it’s 80% psychology.
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Fear and Greed: These emotions can wreck even the best strategies.
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Mindset Shifts: Think like a risk manager, not a gambler.
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Practical Tips: Meditate, exercise, or take breaks to keep emotions in check.
7. Why Journaling Is the Game-Changer
Your journal is like a rear-view mirror — it helps you avoid past mistakes.
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What to Log:
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Date and time of trade.
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Entry and exit reasons.
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Emotional state.
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Outcome and lessons learned.
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Benefits:
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Identifies bad habits.
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Highlights successful patterns.
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Keeps you accountable.
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8. Common Mistakes That Keep Scores Low
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Ignoring stop-loss rules.
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Overtrading after a loss.
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Following tips instead of doing your own analysis.
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Neglecting to review trades.
Avoiding these pitfalls alone can boost your score significantly.
9. Building a Solid Trading Routine
Consistency is built on routines.
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Daily: Analyze charts and update your journal.
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Weekly: Review performance and tweak strategies.
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Monthly: Assess your overall progress and reset goals.
10. Advanced Tips to Reach an “Excellent” Score
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Diversify Your Knowledge: Study different strategies like swing trading, scalping, or algorithmic trading.
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Use Technology: Automated alerts and backtesting tools save time and improve accuracy.
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Network: Join trading communities to share insights and learn from others’ experiences.
11. The Harsh Truth About Forex Trading
Here’s the thing: Most traders lose money because they skip the boring but essential stuff — planning, journaling, and discipline. If you’re looking for quick riches, forex isn’t for you. But if you treat it like a business, your score — and your balance — will improve.
12. Making the Forex Test Part of Your Journey
Revisit the Forex Test monthly. Your score should improve as you develop better habits. Think of it as leveling up in a video game — each upgrade makes you a stronger player in the forex market.
Conclusion
The Forex Test isn’t just a scorecard; it’s a mirror reflecting your habits, discipline, and growth as a trader. Whether you’re just starting or already making consistent profits, this self-assessment can guide your journey.
Remember, trading is a marathon, not a sprint. Small, consistent improvements in your plan, strategy, risk management, and journaling will compound over time — just like profits.
FAQs
1. How often should I take the Forex Test?
Once a month is ideal. It helps track your progress and keeps you accountable.
2. What if my score drops over time?
That’s normal. Market conditions change, and so does performance. Use the dip as a learning opportunity.
3. Can a demo account help improve my score?
Absolutely! It’s a risk-free way to test strategies and build confidence before trading live.
4. Do I really need a trading journal?
Yes. It’s not optional if you want long-term success. Your journal is where growth truly happens.
5. What’s the fastest way to reach an “excellent” score?
Focus on discipline and risk management. Strategies can change, but controlling risk and emotions is non-negotiable.