All traders know that emotions and discipline are very important influencing factors in trading. Just think about your own trading for a moment and ask yourself how your equity graph would look like if you were able to control your emotions and your discipline better!? But as you probably know, it’s not as easy as […]
During our last Edgewonk trading journal review, we noticed that the Edgewonk user was making great use of the Session tab in his trading journal. In this article, want to highlight the trader’s good practices and help other traders along the way to get inspiration for using the Session feature in their journal as well.
A quick recap of the Edgewonk Sessions tab
To begin with, let’s revisit the Sessions tab and remind ourselves what the Sessions tab is doing and what the idea behind it is:
We frequently receive emails from Edgewonk users who seek advice about their journaling routine after they have been inconsistent with entering trades or have even missed days and sometimes weeks.
Now the question is: do you have to go back and re-enter all the trades since you left off, do you pick up now and do you have to start a new journal completely?
There are a few points I’d like to discuss in this context which will also make the purpose of a journal and a journaling routine clearer.
With one of our latest updates, you can now also track break-even trades in your journal.
Being able to distinguish between winning, losing and break-even trades can be very helpful because it allows you to get new insights into your trading behavior.
Break-even trades and psychology
Besides being able to differentiate between the different outcomes of your trades, it can be even more interesting to understand how your break-even trades are created.
Although break-even trades can be a part of one’s trading strategy (moving the stop loss to break even after price moved a certain amount in your favor) emotional decision-making can also be an issue.
Especially when traders are in a losing position, many just hope that the price will return to their point of break-even to get out. This clearly shows emotional trading and is mostly not the optimal approach.
The time between the years, when markets are quieter and everyone is in holiday mood, is the perfect time to prepare yourself for the next trading year and get ready for a fresh start.
“I wish I had been more committed this year and taken trading more seriously. I did not reach my last year’s New Year resolutions and made little progress” is a phrase that many people will say during this time of the year.
Don’t let another year pass by without taking the actions you know will bring you closer to success. We show you how to make the next 365 days count, so that on December 31st 2018 you can look back satisfied and with improved trading results.
The most dangerous trading mistake any trader can make is “system hopping” and we believe that it is the single biggest cause for failure in trading.
System hopping means that a trader keeps changing his trading method, his indicators, entry signals and strategy all the time. While looking around for new strategies is normal in the beginning, when a trader still hops around systems after months, his chances to reach profitability in trading are slim to none.
Why do traders change systems?
Traders are always hoping to find the Holy Grail that will make them a lot of money without putting in a lot of work. But when does it ever work that way in life?
In our quest for helping traders improve their performance, we often get asked how to achieve a higher winrate and stop losing trades. We feel that this is a very important question because it looks at the wrong aspects of profitable trading, yet it is asked by nearly every trader a one point.
The best traders don’t have the highest winrates. The best traders keep losses small and let winners run. Whereas the amateurs lose money even with a high winrate because they let their losses get out of hand.
Checklist are used in different professions to standardize procedures and to minimize the potential for errors. When someone is doing the same task repeatedly, it’s easy to get sloppy or not give it the seriousness it deserves when you believe that you know how to do it anyway.
Trading is the ideal field for utilizing checklists because traders repeat the same things over and over again. Especially if you are a technical trader, you are usually trading the same patterns and following identical rules and signals for each trade.
When it comes to journaling and recording trading performance, there are two types of formats a trader can choose from. Both have their pros and cons and in this article, we want to help you understand the differences so that you can find what is best for you.
#1 A written journal – a.k.a. The Diary
Most traders don’t keep a real journal, but what they have is a diary. Traders with a trading diary mostly use Word, Evernote or just a physical notepad to write down thoughts, feelings or ideas about their trades.
In its essence, the idea of a diary journal is good but the execution is usually less than optimal and there are no benefits from keeping a written journal if the notes just disappear in your drawer and you never look at the again.