Home
Search
Log in
Register
Source :http://www.babypips.com/blogs/pipscalibur/keeping_a_trading_journal.html
Hey everyone,
You've probably heard by now that it is absolutely essential to keep
a trading journal. Without one, and without taking the time to review
it, you could very well end up repeating the same mistakes over and
over, rather than progressing. Contrary to the cliché, practice does
not make perfect. You have to make sure you're practicing good habits,
not bad ones. Keeping a journal will also tend to slow you down between
trades (which is a good thing for most people).
But how do you start?
Nothing fancy is really needed... you can do this easily in a paper
notebook, and often this is the quickest & easiest way to get
started. But the important thing is that you start.
You want to keep track of your entry price, exit price, total profit
or loss (in pips), timeframe, currency pair, long or short, the
thoughts behind your entry, your reasons for exit, as well as jotting
any emotions you experience during the trade, and how you feel about it
afterwards looking back with the 20/20 clarity of hindsight. The reason
for all of the above is eventually you will see patterns emerge, just
like in trading. You want to do more of what consistently wins for you,
and avoid the things which don't.
Get yourself a glue stick - you can right-click on a chart in MT4
and print it out (I suggest changing the background to white first).
Stick the chart in there right with your notes, and go ahead and mark
it up.
Then, in addition, measure the total move (start to finish), and
take your total profit as a percentage of that move. If you captured
75-100%, you get an A. 50-75% is a B, 25-50% is a C, and 0-25% earns
you a D. If the trade was a loss, you get an F. Have a column for both
the percentage, and the letter grade. Averaging your grades over time
will easily show you if you are making progress.
Two more columns and we're all done. Take a look at your entry. If
you were 1 candle too early, you get a T-1. For 2 candles too early,
T-2, and so forth. If you got in a candle too late, you get a T+1, and
so forth. Same thing for your exits. Again, you will see clear patterns
emerge over time. Some people tend to be too jumpy and early, others
tend to be unsure and wait for too many confirmations, and therefore
end up being late and chasing. Knowing which you are will help you know
how to compensate.
Hope this helps!
Hey everyone,
You've probably heard by now that it is absolutely essential to keep
a trading journal. Without one, and without taking the time to review
it, you could very well end up repeating the same mistakes over and
over, rather than progressing. Contrary to the cliché, practice does
not make perfect. You have to make sure you're practicing good habits,
not bad ones. Keeping a journal will also tend to slow you down between
trades (which is a good thing for most people).
But how do you start?
Nothing fancy is really needed... you can do this easily in a paper
notebook, and often this is the quickest & easiest way to get
started. But the important thing is that you start.
You want to keep track of your entry price, exit price, total profit
or loss (in pips), timeframe, currency pair, long or short, the
thoughts behind your entry, your reasons for exit, as well as jotting
any emotions you experience during the trade, and how you feel about it
afterwards looking back with the 20/20 clarity of hindsight. The reason
for all of the above is eventually you will see patterns emerge, just
like in trading. You want to do more of what consistently wins for you,
and avoid the things which don't.
Get yourself a glue stick - you can right-click on a chart in MT4
and print it out (I suggest changing the background to white first).
Stick the chart in there right with your notes, and go ahead and mark
it up.
Then, in addition, measure the total move (start to finish), and
take your total profit as a percentage of that move. If you captured
75-100%, you get an A. 50-75% is a B, 25-50% is a C, and 0-25% earns
you a D. If the trade was a loss, you get an F. Have a column for both
the percentage, and the letter grade. Averaging your grades over time
will easily show you if you are making progress.
Two more columns and we're all done. Take a look at your entry. If
you were 1 candle too early, you get a T-1. For 2 candles too early,
T-2, and so forth. If you got in a candle too late, you get a T+1, and
so forth. Same thing for your exits. Again, you will see clear patterns
emerge over time. Some people tend to be too jumpy and early, others
tend to be unsure and wait for too many confirmations, and therefore
end up being late and chasing. Knowing which you are will help you know
how to compensate.
Hope this helps!
» DOUBT IN F & O
» Selll Tatacom, Stbt for Sep 22nd
» Allahabad Bank , Stay away from here on
» Speculative Trade on Acc , Btst for Aug 12 th
» Canadian Finance Minister Caught Taking Illegal Bribe Kickbacks!
» Tatamotors Can top out @ 1060 , Sell it
» Buy SyndBank today , Aug 13th
» Videocon industries , Big boys will enter soon !