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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. #21
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    Quote Originally Posted by mak7 View Post
    Appreciate it intended for representing like sorts of significant beneficial write-up. I've got understand all your write-up in addition to I've got study quite a few matter style ones write-up.. Dealing newspaper is usually massive group for everyone forex trader. Just about every broker are available that area in addition to study fx trading incredibly properly.in addition to i most certainly will abide by ones many points..
    Appreciate what ever we get in the trading journal,see the mistake and compare one by one problem in the trading,if the traders make the observation clearly about the market they got the good income finally,certain amount of trading balance they will get through it.

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  3. #22
    Registered user ara's Avatar
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    Thank you for this useful tips and advice sir, I understand the importance of a trading journal, and I understand your explanation about how to make a good journal. I created a trading journal here, I will try to apply everything that you suggest to us. I hope I can get a skill enhancement and development of my system. Hopefully this be a good start in my career in the forex.

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  4. #23
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    Quote Originally Posted by ara View Post
    Thank you for this useful tips and advice sir, I understand the importance of a trading journal, and I understand your explanation about how to make a good journal. I created a trading journal here, I will try to apply everything that you suggest to us. I hope I can get a skill enhancement and development of my system. Hopefully this be a good start in my career in the forex.
    You get the analysis not just because you are good subject for it,the trading has been the place for us to sharpen the skill,and the enhancement and development of the system like that clearly showing the new feature for the traders to get everything on the way.

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  5. #24
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    we all need to maintain a journal of trading. we can do well if we maintain a journal. it keep the matters what we do and enhance our experience by saving it. we can check later at what point we did what and take steps in that way. it is really helpful.

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  6. #25
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    Quote Originally Posted by masudulnizami View Post
    we all need to maintain a journal of trading. we can do well if we maintain a journal. it keep the matters what we do and enhance our experience by saving it. we can check later at what point we did what and take steps in that way. it is really helpful.
    Of course we all need to maintain journal in forex trading,because journal can give us earning more than what we think,the journal is also in many cases the way for traders to build their market control,they could make success through it very well by learn it well.

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  7. #26
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    Quote Originally Posted by kamarul View Post
    I think now your MT4 platform is 509. it is the most update MT4. (not 500 version)
    But i have some bad experience on this update. because it is one click trading, i clicked modify order to put TP, but i clicked close order. and with one click trading, it is directly close the order without any confirmation.
    So after open order, i finally close and it is loss order.
    You are trading more like it is instant way for you sure you are not at all on the winning ways for it,to trade the forex market then you show us how you move your acc now very well,of course you need to rinse your acc with good trading style very well to understand the goodness.

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  8. #27
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    journal is nothing but maintaining a diary of trading in the past.this is a good habit for a trader which will help them to trade in future trading.this help them to know the past mistake by which they shall rectify it.above 3 parameters must be analyzed by a trader form the journal to make a better trade in future

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  9. #28
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    Quote Originally Posted by pradeepk View Post
    journal is nothing but maintaining a diary of trading in the past.this is a good habit for a trader which will help them to trade in future trading.this help them to know the past mistake by which they shall rectify it.above 3 parameters must be analyzed by a trader form the journal to make a better trade in future
    This will definitely help them to understand all the things in forex market,from the past to the current market condition,with good habit it will help them to trade in future and earning very well income in the mistake like that,should the traders to develop the earning parameter like that.

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    Finally successful traders

  10. #29
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    Good analysis of the journal is to determine a trade with proper analysis and trade which in this business can truly succeed and generate trades according to strategy and analysis is really nothing we can do we can get the hope and purpose that we can get by well in this business

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  11. #30
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    I had heard some trader said trading in currencies is hard as trading in stock. Trading in currency will always loss but trading stock will not. Its it true that trading currency is hard as trading in stock? If i wanna to trading in stock market, do i need to open a new trading account? How to open a stock trading account? Which stock i need to choose? There are many stock that i dont know which one is the most profitable stock.

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