Wat is een trading logboek …

We at Margin Traders NL advise to unexperienced traders to use papertrading. Start a course about Technical Analyses and make as much trades on papertrading as possible. Build experience. Become one with the charts. To learn from your trade setups and your trades, and that also counts for experienced traders: you have to keep track of your trades with Traders Log, a journal.

Your trading journal is like a “diary” that records your trading activity. It is a deciding factor of whether you are a (consistently) profitable trader or not.

It doesn't matter if you are a swing-, day- or scalp trader. Becoming a successful trader can be a very challenging endeavor. Without carefully planning and documenting, your trading performance, you'll be aimlessly moving through the markets. And that's a situation that seldom ends out well.

A sportsman has a journal to track his diet, weight, and strength, a scientist has a journal to track their latest findings and results of experiments. A gamer has a journal to record his plays and his thought process of the game. And it’s the same for trading!

Trading logs can be very useful, and they play a crucial role in the trading plans of most professional traders, but a lot of unprofessional traders don’t even know what it is. Things like planning futures trades, documenting current positions, and recording any emotions that may pop up are essential element to be aware of when building a profitable trading strategy.

Therefore, knowing how to create and use a trading journal is crucial to any trader's success. Without it, a trader could easily lose track of his winning and losing positions. Or even worse, they could blow up their whole account.

No one is a perfect trader. But if you can discover what strategy works and what does not it will help you to be a better trader or even on of the better traders. If you have a trading journal, you can look back at your past trades and identify which patterns are costing you money — and stop trading it. Then, focus on the ones that are good and profitable for you and you ‘ll find your edge in the markets.

Some tips.
First, you need to create a trading journal spreadsheet like Excel and a written document like Word. You will be using these to record your exact trades and your thoughts, respectively.

Second, you will need to know what you'll be recording so your trading journal will have the highest possible impact on your success. You can find a lot of trading journal example online. But regardless of the template, your spreadsheet should have columns related to each trade. These columns may include:

Entry date

Exit date

Symbol

Direction (long/short)

Entry price

Position size

Stop loss

Take profit

Exit price

Trading fees

Profit/Loss (P&L)

Profit/Loss percentage (P&L %)

Some traders may also add the Trading View links, time frame, screenshots of the setup, and anything else they may think are important.

In your written document (or in another tab), you should have a section for each day where you can write down all your thoughts and ideas so you can get them organized.

The written document is where a trader lets loose their creativity while their spreadsheet helps to measure the profitability of their creativity. Both are very useful when creating and using a trading journal. If you had consistently updated your trading journal, you could now review it and improve your trading results.

You will:

  • Identify patterns that lead to your losses

Among the different trading setups, there might be some which are causing you to lose consistently. So, look through your trading journal and identify the worst performing setup — and stop trading it. This simple adjustment will reduce your losses and ultimately increase your net profits.

 

  • Identify patterns that lead to your winners.

Next, you would want to identify your best trading setups. These are the ones that bring in the dough consistently. So, look through your trading journal and identify the best performing setup — and focus on it. If you want to find more trading opportunities, trade more markets, trade a new timeframe, or both.

  • Find ways to minimize your losses.

After you have identified your best trading setups, you’ll still have losers on it. So, look through the losers of your best trading setups and ask yourself. “How can I minimize my losses?” Perhaps you can cut your losses earlier. Perhaps you can use a filter that reduces your losses. Perhaps you can avoid trading certain time of the day (or week).

  • Find ways to maximize your gains.

Look through your best trading setups and ask yourself. “How can I maximize my profits on these trades?” For example, you can scale out a portion of your trade and let the remaining run, identify patterns that lead to monster winners and trail your stops on it think on your own two feet and figure something that works for you. If you can do these 4 things, then you’re close to becoming the best trader you can be.

On Binance Academy you can download a logbook for free (excel) and customize it to your personal preferences.

As you all know, if you are a starter always trade with paper trading. Now we can add: use a logbook and learn from your own mistakes and successes.

Sources: Binance Academy and Rayner

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