I have been studying my journal entries in the trading platform that I was practicing with. And this is the analysis that I made of my own performance.

Mistake number 1

Each trade set up I made, I only put in the Take Profit (TP).
This is because every time I put in a stop loss, the fluctuations in the prices of the currency pair is triggered way before my TP could be realized.
Frustrated by that, I never really put a Stop Loss (SL) for most of the trades that I opened.

I have been fairly successful in my first three weeks of trading using this method. This is mainly because the price movement kept within a 2 dollars range.
So even when I left the trade open with no stop losses, the trade eventually closed in profit. This is because I have more than enough equity and margin to allow for the price to fluctuate without a margin call.
Managed to even double my funds within this period too! And I was so happy. I finally understand FOREX and the different entry points when they present themselves.
At least, that is what I thought!~

The above strategy I used was a double edge knife that cut me bad during the last week of May, and the one thing that caused my downfall in the demo account.
Nearing the end of the third week, the general trend was still a "Sell" when looking at the charts.
So I put in a trade to "Sell" at the beginning of Friday (of the Third week of May) and went to work. When I came back and checked on my trade, it was still 10 pips short of my TP, so I held on and left the trade open over the week end.

That, on hind sight, was a mistake. A big mistake that I am regretting right now.
During the last week of May, when the markets opened, the price of the USD/JPY did a total reversal.
The price of the USD/JPY pair went up an amazing 200++ pips to end at its peak of 97.10 ++.
That was way more than the equity or margin that I have. As such, the system did a margin call and closed my opened trades, leaving my account with a miserable USD 1.40!!

Mistake number 2

It was a painful lesson. Even though it was just a demo account, I felt defeated.
Reviewing my trade journal, I became cocky when I started making money during the first three weeks of my entry into the market. And I let that get into my head.
A "sin" that I committed. One that was constantly drummed in the various books and forums that I read not to commit. And I DID!

Remedy number 1

The other thing that I feel I need more practice in, is to recognize the different candle stick patterns better. So far, using the few indicators like Alligator and Bollinger bands, I have been able to catch the different trends to earn some good pips. But this is with constant help from referring to books when these indicator patterns present themselves.
And when they do, referring back and forth between the books and the screen, I wasted opportunities to enter the market at a better time to catch the trends.
So more practice is required on this front.

Remedy number 2

I am going to start to put a SL for EVERY trade I make.
Regardless of whether the SL is triggered on not during the fluctuations of the currency pair, I will have to accept the results. If I gain pips, it is a bonus. If I lose pips, I will have to re-evaluate my entry position to make a better trade the next time.

Remedy number 3

I am going to have to control my emotions more. Do not let a few successful trades get to my head that I forget the rules of the game.
Methods that are taught in the books and the various forums do not lie. They are tested time and time again. So stick to the rules and not let a few successful trades get to my head!

Today, I am starting another demo account. And put into practice the things I mentioned above.
I am planning to at least keep a week journal of my progress here in my blog. And hopefully, be able to make it to and active trading account before the end of the year.