Journal Essential

This is a discussion on Journal Essential within the Trading Journals forums, part of the Reception category; Journals are a requirement for traders, however, if you are not recording p/l data for trades within your system AND ...

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Old Jun 9, 2013, 1:48am   #1
Joined Jul 2012
Journal Essential

Journals are a requirement for traders, however, if you are not recording p/l data for trades within your system AND p/l data for trades outside your system you are missing the most essential ingredient in a journal.

First you must have a clearly defined strategy that is rigid, so recorded data becomes meaningful. In earlier trading years I perhaps was mildly satisfied with an overall p/l of 20% annualized. Once I separated my p/l for trades inside the system and those outside the system, and discovered trades inside were delivering 65% annualized and those outside were losing money - my trading light went from dim to bright. This was the trigger that moved me from a casual trader to an aggressive one, who understood that a consistent strategy was required for success. This also led me to positive actions that resulted in measurable improvements in my strategy.

I still trade outside my system in an attempt to identify improvements, but all serious money stays within the boundaries of my over all rule set.


Last edited by graydrake; Jun 9, 2013 at 1:50am. Reason: clarification
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Old Jun 9, 2013, 12:30pm   #2
Joined Mar 2013
Re: Journal Essential

Fully agree with you here, when I started I was losing trades, I was around the 50/50 mark overall, it was only when I started to look at 'how' I was trading, I recorded a few extra bits, the two most important for me was the data I got from overall direction of the market and the daily low and high, I saw that in 20 trades I'd got the direction correct in 19 of them! But was still losing, I realised that a good percentage of the time my sl was too tight and if I widened my stop I'd have moved to profit in many many more trades. So I altered my stops and adjusted the volume so I still had a strong r:r and instantly got better results, it was a test of faith sometimes but overall I rode out Tue fear and my trades ended in profit - then like yourself I realised I was losing most playing outside my rules, so I stopped or just lowered my risk right down while exploring 'new' ways.

Volume I found changed dramatically, I went from trade 15 maybe 20 trades a day!! To less then one a day, now I look for a positive of 4 trades per month in my 'system' and play with other ways at low low volumes about 0.1 percent risk.

Happy pips
Clarity is my cousin, her sister is Sanity, Turnover is the Mistress of Vanity, Profit is the mother of Sanity.

"Only when we have cleansed all our doors of perception will we see things as they truly are, infinite" - William Blake

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