Today I wanted to address something you probably hear over and over, and that’s the importance of keeping a trading journal!
As most will already know Forex trading is a numbers game with no certainties just probabilities, a successful trader has to put the probabilities in his/her favour to give them an “edge” making them profitable in the long term.
Hi readers.
Today I wanted to address something you probably hear over and over, and that’s the importance of keeping a trading journal!
As most will already know Forex trading is a numbers game with no certainties just probabilities, a successful trader has to put the probabilities in his/her favour to give them an “edge” making them profitable in the long term.
In order to be profitable in the long run a trader has to know their edge and in turn has to know their win ratio and their average reward: risk ratio in order to give them a positive expectancy.
Once you know these statistics you can then begin to tweak your system further using more advances statistics such as which pairs have the highest win rate and Reward: Risk ratios or at which times of the day are more successful than others.
Without a trading journal or software that offers you detailed statistics you are trading blind, not knowing your edge is a recipe for disaster.
Now i know most of you find this a very tedious task and you may not see the importance of it, to most of you keeping a trading journal most likely means a spread sheet of all your trades and calculating a number of factors, etc. which can be extremely time consuming however there are a number of websites that offer free software to analyse all your trades and give you detailed summaries, percentages, charts and much more features that will greatly boost your trading results.
One of these websites that i use personally and can only praise for their excellent software, customer support and continuous updates is http://www.myfxbook.com.
After going to the above website simply follow the instructions for setting up your account, the software will then generate a page based on your trading history to include all useful statistics and summaries of your trading, the software will also automatically update itself every hour to show your latest trade statistics.
Now let me get to the actual importance of a trading journal and the many benefits it can add to your trading!
So if you do not already keep a trading journal or use some sort of trading analytical software or website start now!
You will reap the rewards in the long run!
Hope you’ve enjoyed reading
Happy trading, Lee J Brown
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