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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. #51
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    Quote Originally Posted by azaharul View Post
    Thank you for this article posting. This article is helpful for me.Everybody need to maintain a proper journal in Forex market. Your posting provide many things about Forex trader. I am very interested to open trading journal. So, I am following those most tips.
    This thread section of making trading journal is very help me to increase the profit. Because of the trading journal, I make a consistent growing profit even with small grow profit.
    Quote Originally Posted by forx2015 View Post
    I advise everyone to learn and learning only because the more experience increased Alam trader
    He became a successful trader, especially if he has specialized in a specific type of analysis
    Who are Alan trader? Based on the name of dialect, I think he is Malaysian trader.
    Quote Originally Posted by mohamed reda View Post
    if you gonna enter a trade you must have a good view of what is going happen in the market to be able to enter a good trades and to be able to make nice profits with the lowest risk and i think that is the meaning of trading for long term or short term trading so you must analysis the market so well.
    Because of trading journal, trader can learn from the previous history. And trader can learn from it to make another profit in the next trade.

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  3. #52
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    I have read your entire post AS WELL AS i have realize many thing application your post..Trading journal will be big community regarding just about all forex trader.Every trader come the area ALONG WITH realize forex trading very perfectly.

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  4. #53
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    Journal is very important that's why every successful forex trader have it own journal same time this journal help them to realize their mistakes and as well help them to correct them so journal is very important, as a newbie if you want to be successful in trading forex you need to create your own journal and follow your trading activities there.

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  5. #54
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    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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  6. #55
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    I really get something good in this thread, it is necessary and useful for traders to have a trading journal and have the ability to maintain their trading journals, a lot of us have trading journals but sometimes we lack the ability of maintaining what we set up in forex market and which is not helpful to our trade, so it is important that we all maintain our trading journal..

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  7. #56
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    Trading journal is very important because it's where you kept all your trading history the bad and the good you records all in your trading journal so that you can learn from your mistakes and good trades at the same time which will improve your trading a lot, the importance of journal is to track all the wrong and bad decisions we have made and both the good once too.

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    Quote Originally Posted by davido View Post
    Trading journal is very important because it's where you kept all your trading history the bad and the good you records all in your trading journal so that you can learn from your mistakes and good trades at the same time which will improve your trading a lot, the importance of journal is to track all the wrong and bad decisions we have made and both the good once too.
    yes, journal trading is also included in trading activities, many benefits of journal trading, we can to correct any errors in trading, and make us discipline in trading, many of the trading that do not use journal trading, and their results are always make the same mistake, because they are, in their trading, undisciplined.

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  9. #58
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    Quote Originally Posted by Muhammad jabran View Post
    always begin the journal before the trade....and end it after the trade....write down everything....pay very close attention to your emotions....make sure the journal includes observations about you and your trading aboit the forex market....your trade journal is a log of all trading activity...
    That is right , For me trading Journals really facilitate the trader in the evaluation in order to fix any mistakes so as not to happen again.

    Therefore, when traders experience repeated failures should be able to make traders change for the better, because trader mistakes usually exist in a loss condition where many are still difficult to accept bad results to finally take revenge and also don't care in the placement of stop loss as loss control. So do a regular evaluation and make changes to be better so that later will give good results.

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    for the better trade we should have a better journal with great decision,by knowing our mistakes that what we make in trade. Working on a great strategy and having a minimum amount of risk with you.improvising yourself in aggressiveness and the mostly important thing that having patience in making any kind of decision in trading.It would be helpful by joint decision by having experienced opinions with you

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  11. #60
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    Thank you for sharing a good information about trading journal with your fellow traders.Its always good to keep records of our day to day trades to be able to figure out what is responsible for our profitable trades and loses.The main reason why many traders are yet to start taking trade journal is because they are yet to see Forex as a full business

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