Trader’s diary. Why and for what you need it

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4 Reasons You Need a Diary for Both Good and Bad Forex Trades

You may wonder why it is necessary to keep a separate trading journal since just about every broker provides a real-time record of your trades. In fact, one could argue that the broker’s record also keeps track of available buying power, margin usage, and profit and losses for each trade made. Still, there are benefits to keeping a separate trading journal, and here is why.

Historical Record

Over a period of time, the journal will provide a historical perspective. Not only will it summarize all your trades, but it will provide, at a glance, the state of your trading account. In other words, it becomes your personal performance database, which will provide you with the opportunity to go back in time and determine how often you traded, how successful each trade was, which currency pairs performed better for you, and even what time frames gave up the best profit percentages.

Planning Tool

Not only should a good trade journal record your actual trade data, but it should also provide information on what your plans are for each trade. This feature allows you to consider each trade before you take it by setting parameters for where you want to enter, how much risk you can accept on the trade, where your profit target will be set, and how you will manage the trade as it proceeds. In other words, the journal becomes a way for you to record your thoughts in actual numbers and makes it possible to convert wishful thinking into practical reality. It forms the basis of a method for planning your trade and then trading your plan.

Methodology Verification

Another very important by-product of a trading journal is the fact that, over time, it will verify your methodology. You will be able to see just how well your system performs in changing market conditions. It will answer questions like: How did my system perform in a trending market, a range-bound market, different time frames, and the impact of your trading decisions such as placing stop-loss orders, too tight or too loose? In order to retain the full details for the logic behind a particular methodology, the trading journal must be fully comprehensive.

Mind Pattern Modification

One of the most useful features of your journal will be the concrete help it provides in forcing you to change your habits from destructive to constructive. As you learn how to trade your plan, you will develop a greater level of confidence. Your profitable trades won’t feel so random, and your losses will be “planned for,” and therefore won’t ding your psyche in a way that will make you feel that a loss means you are a loser. A very important mental and emotional factor in trading is your level of confidence. Confidence is the antidote for the fear and greed cycle in which many traders will get caught. Fear and greed is a natural, hardwired response in most humans. If you are winning, you want to win more; if you are losing, you feel fear and even panic as your account dwindles toward zero.

Having a journal that gathers your statistics sets up a trading plan by defining parameters of action needed, provides a rearview mirror so that you can measure how well you executed each trade, and most importantly, provides you with the feedback to develop and evolve your trading skills. You will find a good trading journal to be a best friend and mentor as you make progress. (Market hours for Tokyo, London, and New York determine volatility peaks. Find out how in The Forex Three-Session System.)

The Two-Part Journal

It is recommended to set up a trade journal that accomplishes two main concepts:

  • A chronological columnar list of trades you can total and aggregate so you can have a record of all your efforts. This is best accomplished by handwriting in the columns all the pertinent data. Of course, you can keep records using an Excel spreadsheet that can automatically do the math for you, and which will remove simple calculation errors. This depends on your own abilities in spreadsheet modeling.
  • A printout of the actual chart you used to determine the trade, indicating your entry level, your stop-loss level, and your potential profit level should be clearly marked up on the chart. Mark the reasons you made the trade on the bottom.

Finally, you should set up a journal for each type of trading methodology or system you employ. Do not mix systems, as the results of your trades will derive from too many variables and will then be inconclusive. Therefore, if you have more than one trading system or methodology, you should keep a journal for each one.

Every trade you record should be based on only one particular system, which will then give you the ability after 20 trades or so to calculate the expectancy or reliability of your system.

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Here is the expectancy formula:

Example: If you made 10 trades, and six of them were winning trades, four losing, your percentage win ratio would be 6/10, or 60%. If your six trades made $2,400, then your average win would be $2,400/6 = $400. If your losses were $1,200, then your average loss would be $1,200/4 = $300. Apply these results to the formula and you get:

or 40%. A positive 40% expectancy means that your system will return you an additional 40 cents over every dollar in the long term.

The Bottom Line

Once you know your system’s expectancy, you can act with confidence. Confidence is the key to execution. If you lack confidence you will not be able to execute your trades according to your plans and you will either second-guess yourself or become paralyzed from too much analysis of data coming in from the market. Make a trading journal your first trading habit. It will become the key to all your good trades in the future.

Дневник трейдера Forex. Myfxbook.com

Всем привет. Сегодня речь пойдет про дневник трейдера Forex и вообще зачем он нужен. Как и для чего пользоваться системами сбора статистики, на примере Myfxbook.com.

Для чего нужен дневник трейдера Forex.

Дневник трейдеру необходимо вести обязательно и исключений здесь нет. Дневник помогает проанализировать торговую историю, важные параметры торговой стратегии и торгового поведения. Плюс к этому, возможность проанализировать каждую свою сделку. Также Myfxbook является подтверждением квалификации трейдера для потенциального инвестора (лучше просить в дополнение пароль инвестора к МТ4, так как некоторые параметры рассчитываются не корректно).

Оптимизация своей торговой стратегии.

Данный ресурс помогает оптимизировать свой стратегию с точки зрения использования торговых инструментов, времени торговли, дней торговли и многих многих других параметров. На мой взгляд не стоит пыхтеть на торговыми инструментами, которые не поддаются прогнозированию трейдера. Лучше их просто исключить. Многие спекулянты специализируются, как правило, на одном двух инструментах, которые они понимают лучше всего.

Официальный TrackRecord для партнеров.

Трейдер помимо торговли может зарабатывать деньги, обучая других или управляя средствами инвесторов. И для реализации этих целей дневник трейдера Forex на myfxbook.com поможет подтвердить квалификацию и положительную историю торговли. Лично мне часто приходилось сталкиваться с мониторингами счетов на Myfxbook и я отдавал предпочтение «долгим» торговым счетам, с достаточной для анализа историей торгов и заметным прогрессом трейдера. Трейдерское ремесло предполагает постоянное обучение и адаптацию к вечно меняющемуся рынку. Поэтому чем старше торговая статистика, тем лучше.

А чтобы статистика была без резких колебаний баланса и эквити пользуйтесь риск менеджером, который свободно можно скачать тут.

Вроде сказал все, что хотел сказать. И если вы читаете эту статью и у вас солидный track record не стесняйтесь пишите мне и мы найдем точки соприкосновения, а возможно и поработаем в одной команде. Вся информация об этом изложена тут. Если солидной истории нет, то рекомендую открыть торговый счет у надежного и проверенного брокера Global Prime, добавить свой счет в мониторинг и развиваться в направлении трейдинга на Форекс. И быть может, со временем я стану вашим инвестором через MAM сервис данного брокера.

Reasons Why Forex Traders Lose Money

Michael Grabois/Getty Images

A commonly known fact is that most forex traders fail. In fact, it is estimated that 96 percent of forex traders lose money and end up quitting. The forex website DailyFX found that many forex traders do better than that, but new traders still have a tough timing gaining ground in this market. To help you make it into that elusive 4 percent of winning traders, the following list shows you some of the most common reasons why forex traders lose money.

Befriending the Market

The market is not something you beat, but something you understand and join when a trend is defined. At the same time, the market is something that can shake you out if you are trying to get too much from it with too little capital. Having the “beating the market” mindset often causes traders to trade too aggressively or go against trends, which is a sure recipe for disaster.

Low Start-Up Capital

Most currency traders start out looking for a way to get out of debt or to make easy money. It is common for forex marketers to encourage you to trade large lot sizes and trade using high leverage to generate large returns on a small amount of initial capital.

You must have some money to make some money, and it is possible for you to generate outstanding returns on limited capital in the short term. However, with only a small amount of capital and outsized risk because of too-high leverage, you will find yourself being emotional with each swing of the market’s ups and downs and jumping in and out and the worst times possible.

You can resolve this issue by never trading with a too-small amount of capital. This is a difficult problem to get around for someone that wants to start trading on a shoestring. $1,000 is a reasonable amount to start off with if you trade very small (micro lots or smaller). Otherwise, you are just setting yourself up for potential disaster.

Failure to Manage Risk

Risk management is key to survival as a forex trader as in life. You can be a very skilled trader and still be wiped out by poor risk management. Your number one job is not to make a profit, but rather to protect what you have. As your capital gets depleted, your ability to make a profit is lost.

To counteract this threat and implement good risk management, place stop-loss orders and move them once you have a reasonable profit. Use lot sizes that are reasonable compared to your account capital. Most of all, if a trade no longer makes sense, get out of it.

Giving in to Greed

Some traders feel that they need to squeeze every last pip out of a move in the market. There is money to be made in the forex markets every day. Trying to grab every last pip before a currency pair turns can cause you to hold positions too long and set you up to lose the profitable trade that you are trading.

The solution seems obvious here, just don’t be greedy. It’s fine to shoot for a reasonable profit but there are plenty of pips to go around. Currencies continue to move every day so there is no need to get that last pip; the next opportunity is right around the corner.

Indecisive Trading

Sometimes you might find yourself suffering from trading remorse. This happens when a trade that you open isn’t immediately profitable and you start saying to yourself that you picked the wrong direction. Then you close your trade and reverse it, only to see the market go back in the initial direction that you chose.

In this case, you need to pick a direction and stick with it. All that switching back and forth will just make you continually lose little bits of your account at a time until your investing capital is depleted.

Trying to Pick Tops or Bottoms

Many new traders try to pick turning points in currency pairs. They will place a trade on a pair, and as it keeps going in the wrong direction, they continue to add to their position being sure that it is about to turn around this time. If you trade this way, in the end, you end up with much more exposure than you planned, along with a terribly negative trade.

It’s best to trade with the trend. It’s not worth the bragging rights to know that you picked one bottom correctly out of 10 attempts. If you think the trend is going to change, and you want to take a trade in the new possible direction, wait for a confirmation on the trend change.

If you want to pick up a position at the bottom, pick up the bottom in an uptrend, not in a downtrend. If you want to open a position at the top, pick a top when the market’s making a corrective move higher, not an uptrend that’s part of a larger a downtrend.

Refusing to Be Wrong

Some trades just don’t work out. It is human nature to want to be right, but sometimes you just aren’t. As a trader, you just have to accept that you’re wrong sometimes and move on, instead of clinging to the idea of being right and ending up with a zero-balance trading account.

It is a difficult thing to do, but sometimes you just have to admit that you made a mistake. Either you entered the trade for the wrong reasons, or it just didn’t work out the way you planned it. Either way, the best thing to do is just admit the mistake, dump the trade, and move on to the next opportunity.

Buying a System

There are many so-called forex trading systems for sale on the internet. Some traders are out there looking for the ever-elusive 100-percent accurate forex trading system. They keep buying systems and trying them until finally giving up, deciding that there is no way to win.

As a new trader, you must accept that there is no such thing as a free lunch. Winning at forex trading takes work just like anything else. You can find success by building your own method, strategy, and system instead of buying worthless systems on the internet from less-than-reputable marketers.

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  • Binomo
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