Keeping the records of any income-generating activities is a key aspect of development, or at least maintaining the current situation at the sufficient level. When it comes to traders, this matter is ever-more crucial.
A trader's log helps to develop a habit of keeping track of all trades, both open and planned ones, as well as their outcome.
Many trading gurus recommend including not only numerical data but also the reason for opening a position.
E.g. “the trade was opened according to the signal of the triple screen trading system” or “the price bounced off a major support level, and the trade was opened when a new candle appeared”.
These comments added to the trader’s statistics allow gaining a better understanding of the market and identify common mistakes not only in your own knowledge but also in trading strategies.
It is important to work with statistics when the market is closed. Absence of adrenaline and sole focus on trading allow examining the received information with a cool ahead.
Typically, as a result of the mentioned contemplation, the trader comes up with new ways to improve trading and adjust the system, which, in turn, boosts profitability.
Despite the overall simplicity of the record-keeping process and obvious relevance of results that it provides in the course of thorough examination, a handful of traders actually use it fully.
Maintaining statistics become an intolerable burden, a mundane work nobody wants to do.
You have to admit that it is incredibly tedious to fill in several columns in a table, describing the current mental state when the trade is open and heading in the right direction.
The trader’s log is not only actual statistics of the trading system’s performance but also self-discovery. Traders, especially the newbies, start believing they are some kind of market gurus, once the first-ever trades generate certain profit.
Such traders begin to neglect money management and appropriate risk and profitability levels which ultimately results in them losing all their money.
When it happens, they quit trading altogether, claiming that the markets are nothing but a fraud, when in truth they and their approach are the problem.
The novice traders have no sense of the market, no premonition or gut feeling by which they justify their early success. In actuality, this is a result of an average following of a trading strategy and plain luck.
Over time, after facing the ups and the downs, the trader gains the experience and comes to realization that trading is no Russian roulette and requires much more self-improvement than it seemed initially.
The log kept by a novice trader should include a mandatory section “Why I have decided to open this position.”
When checking the records for a lengthy time period, you will be able to determine if the system hasn’t been performing well or if a portion of losing trades is opened in a hit-and-miss fashion.
Without the log, each of your decisions may seem like the right one, whereas the actual reasons for taking it will eventually fade from your memory and couldn’t be recalled later.
After having read the first portion of this article, a lot of people may believe that the trading statistics is an important but not compulsory aspect, especially since the trades’ effectiveness can be checked in the histгory of the terminal, although only for the current month.
That said, let’s take a closer look at all the advantages of keeping detailed Forex statistics in order to debunk the myths and, possibly, reveal more pros of doing it:
Mental state. It is also vital to keep track of this aspect in Forex statistics since strong emotions or other mental states that do not fall within a category of an adequate working mood can have a major impact on the trading performance. This becomes even more important for those combining trading with the main employment.
We are continuously working to improve our solutions and ensure maximum convenience and safety of our customers.
Understanding that keeping statistics manually may seem tedious and unworthy of attention, we came up with Trader’s Statistics.
This is a unique offer in the Forex market. The statistics on all trades are automatically collected from the trading account connected to it, and the trading performance is evaluated based on several parameters available for sorting and categorization.
This solution allows adding comments and notes to the trader’s log to simplify further examination of obtained materials.
Those who use our service constantly and evaluate the obtained results using the insights claim that finding weaknesses in the trading strategy and ourselves helps make the trade profitable.
In addition, profitability concerns not only a change in the ratio between profitable and losing trades but also the situation regarding orders within each trade. A change in the profits by 10 pips by decreasing the stop order by 5 pips in terms of a six-month trading time period demonstrates a sufficient increase in profitability.
The online solution for maintaining trading statistics brought to you by Gerchik & Co broker is a perfect tool for those wishing to increase the profitability of their trading and willing to spend several hours a month examining the obtained findings.