What if we told you the best trading tool available is absolutely free? That perhaps the fastest and most effective thing you can do to increase confidence, consistency, and profitability requires as little as 20-30 minutes each week…no gimmicks, and no strings attached?
Sound too good to be true? Maybe it does, but here's a cold, hard fact about trading: an effectively executed trade journal will make you better and more efficient than any "black box" trading system or "top secret" indicator ever will.
Takeaways
What a trade journal is useful
How you can use it to improve your trading
Easy steps to ensure you keep your journal updated
The firm's main research and development office is based in Tel Aviv Israel. It originally specialized in Forex and indices spreadbetting and CFDs but has recently expanded in stock trading also.
At the time of writing, eToro has 2.2 out of 5 star on Trust pilot. The comments suggest that the platform offers some impressive features but withdrawing money can be difficult. Having said that, some of the negative reviews appear to be rants rather than constructive criticism. This can be examples of traders losing money through their own recklessness rather than eToro's fault. You should therefore take this reviews with a pinch of salt.
“the platform offers some impressive features but withdrawing money can be difficult.”
76% of retail investor accounts lose money when trading CFDs with this provider.
OANDA is a global financial services company providing advanced currency solutions to both retail and corporate clients all over the world. In this article, we are going to review this broker’s trading options, tools, platforms, spreads, commissions, security measures, and educational resources to help traders make the right choice.
76.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing
AvaTrade offers a wide variety of trading solutions (spread trading, CFDs, and social trading), and peace of mind with its comprehensive regulation, covering the EU, Australia, Canada and South Africa. Clients can use a variety of platforms for discretionary and automated trading.
76% of retail investor accounts lose money when trading CFDs with this provider.
Offers multiple asset classes, platforms, and regulated in a variety of regions. Caters for a global audience. Awarded with the Highest Overall Customer Satisfaction Award for 5 years running - Investment Trends CFD Report 2015.
A standalone copy-trading ecosystem, providing equities, foreign exchange, commodities and cryptocurrencies markets. Provides a global selection of brokerages.
Pepperstone is a global regulated broker that provides its clients with the latest technologies for trading multiple assets such as Forex, indices, cryptocurrencies, stocks, ETFs, and commodities. This article provides an overview of its trading platforms, tools, fees, protection measures, and other aspects to help traders make a more informed decision.
Far more than just a tool for tracking P&L, a proper trade journal will paint a detailed portrait of your strengths and shortcomings, actionable patterns, and tendencies you may not even know you have, not to mention help you monitor and achieve your own individual trading goals.
With that, here are the three most crucial components of any trade journal:
Trade Journal Component #1: Completeness
A good trade journal contains much more than just what you traded and at what prices you bought and sold. To really do this right, make note of the market conditions (bearish or bullish), volatility, and any news and/or economic data that was in play that day. Also in your trade journal, include the time of day, and document the trade set-up and strategy being used, and perhaps more importantly, why. Note the stop loss and target levels (intended and/or actual), and your personal and emotional state at the time of the trade.
Sure, you'll track your P&L in your trade journal, too, but all this other information is just as vital, and this is why: you're likely to spot market trends and chart patterns from the data in your trade journal that can immediately help you in your Forex trading. For example, when and under what conditions a particular set-up or strategy works best (or worst)? Are you taking profits too soon (or too late)? And are outside factors from your personal life creeping in and affecting your trade decisions?
See also: 5 Crippling Mistakes the amateur trader Will Make
Trade Journal Component #2: Objectivity
When we most recently discussed "Simple trading tips That Work in Life, Too," one of the central themes was that "honesty is the best policy." This is especially true when it comes to keeping records and analyzing the data in your trade journal.
Losing trades hurt, not just because you lost hard-earned capital, but also because you may then have to admit that either you or your trading strategy were wrong. It takes guts to own up to it, but doing precisely that in your trade journal is the best tool there is for identifyingwhat really went wrong (and right) and then making the proper adjustments to improve future results.
None of that will be possible, however, unless you "tell it like it is" in your trade journal. Don't just blame the markets for going against you whenever you suffer a losing trade. Did you hesitate, let fear or emotion get in the way, or break one of your trading or risk managementrules? What really caused each losing (and winning) trade?
Write it down and you may be surprised just how quickly you're able to see what you're doing right, and what you need to improve upon in order to achieve your own unique goals (which you should lay out clearly on the first page of your trade journal, by the way).
Trade Journal Component #3: Accessibility
Perhaps this goes without saying, but a trade journal is no good if you don't actually use and refer to it. Write in it immediately following each Forex trade, and you can start reaping the benefits from that moment forward. Don't try to go back and journal or analyze weeks or months of data, because too much will get lost in translation. More importantly, there will undoubtedly be patterns evident in just a few days' worth of data, and you could easily use that to make adjustments that improve your results, prevent repeat mistakes, and best of all, save or make you more money.
It may only take a small sample of trades, for example, to see that you've been setting your stops and/or profit targets too wide, and that it's costing you in these low-volatility market conditions. If that's the case, don't have it be weeks or months from now when you finally identify and correct that problem! That kind of instant feedback helps produce immediate improvement, and it's all just minutes away when you take a bit of time to analyze the data in your trade journal.
Conclusion
It's a beautiful thing whenever a set-up is so clean that it results in a trade you can simply "set and forget." Before getting on with your day, though, take a couple minutes to log your trades in your trade journal, and try never to skip this stepor put it off until later. We all know that we tend to forget almost all about it by then!
Be detailed and exceptionally objective—even if the truth hurts—each time you write in your trade journal, and then regularly analyze the data. If you do, then right there in front of you, you'll have trulyinvaluable information and a veritable roadmap you can follow as you pursue your personal trading goals, with no overhyped or overpriced trading gurus ever needed along the way!