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  1. #1
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    Tips for analysing your trading journal

    Hi traders! I want to share some useful principles that will help those who journal their trading. By the way - who is not jouraling yet, believe me - it's very valuable habit you can develop in your trading.
    Trading journal can be divided on 2 parts: Narrative part and statistical part. Narrative part of your jounal contain your thoughts about market, about your trading, about your current psychogical state, some refections about your strategy and trading plan. As for statistical part of trading journal, it comes to analysing numbers. If you know what is normal for your trading, you can compare your current performance with the benchmark. For example, if you know that over the time you were making 5-10 trades a week (and that was ok for your trading plan), but now you are trading more frequently, it may be the sign of overtrading.
    For analysing your journal from statistical perspective, I would advice you to keep an eye on the following parameteres:

    1. Frequency of trades:

    Overtrading can be more harmful than undertrading, but both tendencies are harmful. Whereas undertrading (when you do less trades than usually) "freezes" your equity curve, it also has nothing to do with profitable trading. Trading involves risk taking (concious risk taking, of course), and if you don't take risk, you will not probably have gains.
    But, of course, if reduced number of trades occurs as a result of optimization, when you remove "junk", it is a good sign. If you increase your patience and improve your trade selection, it should be consideres as a positive sign for your trading.
    So, parameter itself can't tell anything about your performance - you should know what you have done to achieve this parameter. Consiousness and honesty is the best companion here.

    2. Aggressiveness of trading:

    Also, there is second parameter that makes sence - aggressiveness. If we analyze frequency of our trading, we may notice that trading activity is distributed in non-linear mode. There are days when we trade more, there are days when we trade less. The goal is to understand what triggers us to trade more/less and track actual correlation between aggressiveness and profitability. If there is no correlation (say, frequency is not influencing your performance) or negative correlation (the more you trade the less money you make), then you should make analysis - WHY are you trading more in some cases? Reasons can be either psychological (performance anxiety) or market-driven (you think that during some market condition you MUST trade more) or both. Your challenge here is to understand connection between your beliefs and your actions - in a nutshell, to understand WHAT drives you to trade more. Statistics will help you to understand whether it makes sence or not. We often think that we know our trading and our personal strentghs, but in reality we don't always know it - numbers don't lie - they show you real picture.

    3. Preferred trading instruments (biases) and destination:

    If you analyse your trading, you may discover that you tend to make more trades on specific currency pairs. For example, you have 5-6 major trading instruments, but make 80% of your trades on 1-2 instruments - say, EURUSD or GBPUSD. This approach can be effective in case you are trend-following position traders and capture large swings. But in short-term trading if you are trading more on some instruments and undertrading on other, in may create an effect of "episodic trades". Every trading approach is robust only during a series of trades, single attempts to "trade-off a setup" may cause a random distrubution of results. In short-term trading, there is much randomness and uncertainty, and one single trade doesn't make sence on most cases. According to my personal experience, stability in trading occurs only if you are ready to be make required series of trades, instability occurs when you are trading "occasionally".

    Good luck!

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  2. #11
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    yes there is some randomness on short term trading even the correllation of some pair are the same or prositif but this will be not the same if we trade in short term but in this situation we can see that the pair seem not have the same correlation.

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  3. #12
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    Many thanks regarding offering these forms of essential insightful post.I have examine all of your publish and that I include study several matter sort your post.Trading newspaper is large community for many fx trader.Every dealer come this place and understand forex currency trading extremely perfectly.Your tips is vital for me because I do want to available an investing journal.and i will follow your all tips.

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  4. #13
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    Thanks for sharing ur experience in Trading. This journal is very helpful to me as well as others.

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  5. #14
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    my spouse and i think forex Best on the net bussiness hai maine kafi websites per kaam kia hai lekin ye sub se diffrent hai ye dosri on the web jobs se boht acha profits deti hai ye legal on the net bussiness hai can be se meri life boht straightforward ho gae hai

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  6. #15
    Registered user Quid's Avatar
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    Quote Originally Posted by Value trader View Post
    We often think that we know our trading and our personal strentghs, but in reality we don't always know it - numbers don't lie - they show you real picture.
    Yes,it is true we need to see the price,trade what the pattern we see in the chart,don't trade without the real market price,we can perform trading just simply place the trade because we know direction but it will not be accurate,we should prepare to see the price first.

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    Finally successful traders

  7. #16
    Trader rinaji's Avatar
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    Thank you for the useful tips, I have to learn from this thread, I still feel that I am lacking in managing my trading journal, I sometimes forget to update from my journal. But now I know some of the parameters that I can use as a guide. At least I could have a good pattern to enhance the systems and knowledge by knowing these parameters.

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    If you lose, be patient. If you win, stay humble

  8. #17
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    yes that you are correct AND ALSO i are simply just checking several an individual made in excess of 50000$ your week AS WELL AS i am still survive how can be That possible but yes every thing is possible in forex. and so This can be why when i think there is absolutely no some other business in which may have potential to supply people greater result in comparison with forex

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  9. #18
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    The frequency of your trades as well as the aggressiveness at the trading are interrelated factors As the frequency may increase with the aggressive trading.While you\'ll want to have your current bias of a trend trading and the acquire earnings so does your earnings producing depends at it.

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  10. #19
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    Thank a person with regard to presenting most of these ones involving clicks informative post.I have read your overall post ALONG WITH when i have know numerous thing form your post..Trading journal is big community pertaining to many forex trader.Every trader come your place ALONG WITH understand forex trading very perfectly.Your tips is usually very clicks with regard to me since i want to be able to open a good trading journal.and when i will follow the many tips ..

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  11. #20
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    [lang=id]determine a good choice before entering the trade as well as planned with careful analysis that we can use in the business of creating trade is very important for us to make right choices that may be capable of producing safe for our trade and commerce for the lan[/lang]

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