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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. #31
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    We should keep record our all mistakes and the reason of loss. First time would not know the trend of market. When I knew to trade from trend line then I was wonder about the market movement. I lost a lot of money due to this reason. I should keep the record of my bad days. Now I am very happy in this market. I make very poor profit but no loss.

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  3. #32
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    In my part I always try to put the mark on what is the result of my analysis and why did I open that position and what strategy did I do to make me earn or loss money. So far that's what I do and I do make some good profit some how. I'm really hoping that I can guarantee myself to become a successful trader. I'm so interested to know if I can handle my trading account just fine in here.

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  4. #33
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    Thanks for your tips about analyzing our trading journal. You give here many helpful details about analyzing. I am like your advice to keep an eye on the following parameters. I think when i keep analyzing these parameters then I can profit in my business in forex. Your post very important for new peoples as like me because I am a new user.

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  5. #34
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    yeah trading journal is big community for all Forex dealer.every dealer learn on Forex perfectly.if you open a good trading journal you should be succeed.besides you trade well you become gain more profit.but you don't greedy.then you surely succeed.

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  6. #35
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    hi it is a great opportunity to is to earn huge money form forex trade.so we should take it seriously.

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  7. #36
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    Part of being a good trader is to know how to check our trading history. I do record my trading each day as I have 20 trading accounts in ten different forex broker sites. So I really need to record to have a virtual view of my current account state. So far I am happy that I am growing my trading account and I achieve my main goal for this year. And with the help of the journal I know exactly the strength and the weaknesses of my trading accounts.

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  8. #37
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    Quote Originally Posted by paritosh View Post
    Keeping journal with all the details of each and every trade along with its consequences should be a must who wants to be a successful trader in Forex trading. As a new trader I use my own journal from which I get the overview of my trades. I can calculate the profit and loss of my recent trades and the position of my overall trades. It helps me to determine my next steps in trading.
    i use the metatrader4 for iphone in apple store and i see its very closet because you cannot use it as well as the windows version who can use a lit of options to trade easily with some costume indicators or experts or scripts
    so please give us a best metatrader for mobile All the users before to get a "Newbie" status have no right to use attachments placed on the Forum. To come into the "Newbie" group it is needed to write down 15 posts and it must be passed 2 days after Forum registration

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  9. #38
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    Well i am really impressed with your this thread my dear friend.you Share an amazing information.i got something learn from this thread.I believe a good strategy plus a good trader if both get combines then they can win forex 90 % centageg of trades.That what i believe dear friend.waiting for more tips.

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  10. #39
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    I also want to add up that we need to monitor our free margin, margin and equity. In my trading journal I don't record my balance only my equity, free margin and margin. Because at the end of the day its really does not matter if you have 10,000 dollars balance if your free margin is -10 dollars as you are prone to getting stop out. In fact you are already in margin call area.

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  11. #40
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    the consequence should be a must that wants to be a successful trader in the Forex trading, it is very important to me because I want to open a trade journal, it is helpful for all traders to learn new things and especially learning from the mistakes, problems managing money for other problems unlimited for merchants

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