People become successful when they learn from their mistakes. In this sense, stock trading is no different, except that traders’ mistakes come with a price. In order to remedy this situation, we have come up with the Trader’s Diary!
This solution is designed to help record the trades and analyze them overtime in order to monitor the trading progress and correct possible mistakes. Since the information flow is massive, memorizing everything is just impossible. So, traders keep track of all their trades by using the Forex log.
The trader’s statistics diary is an integral part of trading in financial markets. Some people prefer using notebooks to write down their trades. Others take screenshots of each trade and store them in a special computer folder.
Some opt for Excel tables, while the others keep track of their trades using multi-feature online service Trader’s Statistics. Regardless of the way the statistics is maintained, the trader can easily check any trade at any given time and analyze it.
What’s important is to indicate the following information in the trader’s diary, namely:
- date and time of the trade;
- position opening price;
- closing price;
- stop loss and take profit size;
- reason for opening a position;
- trade outcome.
The above data allow the trader to make a thorough analysis in a relaxed environment and identify the trading trends and patterns.
As already mentioned, all of the information, including the date, day of the week, and perhaps even exact time should be recorded in the trader’s diary. Newbie traders may wonder why they have to indicate all of this.
The answer is simple: that way, it provides a full picture of the trading, since the trader can determine on which days or during which hours the most profit is made, and when the losses are prevalent. As a result, the trader can avoid the said loss-making trading time thus increasing the profit.
Since the reason for opening a position is also entered into the Forex log, during the analysis the trader can determine which patterns work well and which should be laid to rest. This, in turn, allows to maximize trading profits and fully eliminate or minimize keep unprofitable trades to a minimum.
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That being said, an obvious question arises: so, when is the best time to analyze trades? As practice shows, the best way to do it is over the weekends while reviewing the statistics for entire past week, although nobody forbids you to analyze it daily after trading. With that said, this method is not recommended and here’s why:
your brain is simply unable to reasonably evaluate all of the information in the end of the trading day;
the daily performance figures can be quite irrelevant, since the market might have not let you make money, even though you did everything right;
weekly information gives a much clearer picture of your trading, and so you can safely adjust your trading algorithm accordingly.
Gerchik & Co offers its customers who are trading from $1,000 a free access to the Trader’s Statistics online service. All data can be downloaded either automatically straight from the trading terminal or manually from a trading report. To perform the analysis, the traders can use a huge selection of filters designed to help determine which days or hours the trader incurs the most losses. In addition, when performing the trading analysis, you can see which price patterns work best.
By applying various filters, the trader can make a thorough analysis in order to eliminate the signals that produce negative trading results, that way increasing profits exponentially. Since the information can be uploaded automatically, there is no need to manually enter each trade in a special log or keep track of it in some other way. Aside from that, the trader who trades with Gerchik & Co can access and analyze the entire trading statistics at any given time which allows to identify mistakes and eliminate them timely.
By maintaining trading statistics, the trader:
- sees the entire trading result spread out before him/her;
- does not have to personally record the trades;
- gets to use a large selection of parameters to analyze the trading outcome;
- can filter all trades;
- identify and get rid of ineffective signals of the trading strategy.
To consolidate the material, see the video below!