Forex trader diary – why and how?

Forex Trading Diary

Is there any way to objectively evaluate your forex trading system? Does it make sense to write a business journal? Or you need to make sophisticated programs? And what outputs and analysis, we can get? What our results and statistics can serve? It’s good to be consistent and write everything, or prefer not to defer the details and write briefly only the most important?

The road to success in trading is usually winding and inter alia an unpleasant area, which has perhaps no one in favor – bureaucracy, paperwork, statistics, evaluation and research. In short, leadership BUSINESS DIARY. But this is absolutely necessary condition for us to have a good trading system and mainly good feedback.

Business diary is a mirror of your personality and your business strategy.

Can you imagine that your trading system, trading approximately one year and not writing a business book? If so, then you have in hand a single information: and if you have had or earned. At best you are able to quantify the profit or loss and the percentage of.

If you want to know what one trader, look at his trading diary (if you have so much confidence that you daily shows), many will tell you.

What can you find a well kept diary:

• number of trades for the period
• % of success in
• nominal value of the profit or loss
• percentage of the profit or loss
• success of individual pairs in%
• average income
• drawdown
• success of long and short positions
• average stop loss
• size of the traded positions
• conditions of entry and exit
• psychology input and output
• other sub-notes to individual transactions

In other words, you’ll find everything you need for further improvements and tuning your trading system.

Consistency, accuracy and patience are essential prerequisites for the proper management of the business diary. But it definitely makes sense. Although this often painstaking work can fully appreciate only when you analysis of your trades shows, where do errors that currency pair does not fit the strategy, if you can somehow modify the SL and PT, etc.

It is not necessary to take any sophisticated programs or other software. The whole,, finery “you can buy themselves satisfactorily in Excel. If you have enough imagination and dexterity, your business diary boasts quite an interesting and graphic form.

In the first phase, you should think well, what statistical outputs you need to optimize your future trading system. Each system will have their own characteristics and each trader other requirements. Also, a lot will depend on what time frame trading. Of course, you will need another output at 5-minute timeframe and others at daily charts. What are the possibilities of outcomes? So, for example, if you want to improve RRR, you may watch an average gain and average loss and also the potential to increase profit target and stop loss reduction. The evaluation should be such as to show you how we will reduce the success, if we increase the PT to be about 10 pips. At the same time we should learn how it affects our profit.

When you know what outputs you need, it is necessary to define what we observe. Ideally, these requirements you can directly insert into the table. The basis will always be a date, few, size, position time frame, time of entry, exit, etc., see table below.

This prepared the basic table can be easily adapted to your needs, so you always have the data necessary to control and modify your trading system.

Try to select for unnecessary information that you can not spend his youth entering data into the table. On the other hand, I try to watch all the necessary information. Do not underestimate the importance of statistics, discover the magic of that boring science and its potential use for their benefit. There’s nothing better than when you have control over it than what you have.

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