Saturday, February 28, 2015

The importance of maintaining trading record

: there are many benefits of maintaining a trading record....of all your trades.....
: e.g. in judging your track record, getting insights into what is working and what is not....
: ....u r losing in which setups and winning in which ones....
: .....what is ur average trading size.....what is ur average losing size....
: .....and many more benefits....besides for income tax prupose.....
: let me share my insights from my trading record that i maintain....
: 1. my success ratio is 72.7 %
: 2. my average winsize is 65points
: 3. i profit 88% of the times when i trade pro-trend
: 4. i have lost 65% of the times i have taken anti-trend position......also, the average winning size is much lesser
: 5. out of all my losses pro-trend, 75% are at the turning points.....i.e. when the market was about to turn, the trend was about to change.....this insight from the data led me to look for answers which i think i have found....
: 6. my success ratio with futures is 88% against 50% with options....this was a real shocker as earlier i always used to prefer options thinking they were safer.....

: ....there are many such insights i got from my trading data that i got......
: had i not maintained my trade record, i would have had no data to analyse. i wouldn't have had any base to check whether my trading was actually improving....i wouldn't have known what was working and what was not.....
: maintaining ur trade record always helps you know the reality....where u stand....
: besides helping maintain a clean record for taxation.....

.....another insight is that my average holding time is 3.5days

.....i take an average of 10.5 trades per series

....my average loss size 32.5 points

....i loose the heaviest when i have highest lot size anti-trend!!! this was heights of stupidity.....i came to know about this only from trade record and stopped the hell doing it

the more i search, the more interesting things data tells me

whenever i am down.....i look at the entries of my biggest wins....

whenever i am on cloud 9 (like today) i check the entries with my biggest losses.

trading starts revealing secrets to the student who offers his or her life to it on a platter....self talk

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“Measurement is the first step that leads to control and eventually to improvement. If you can’t measure something, you can’t understand it. If you can’t understand it, you can’t control it. If you can’t control it, you can’t improve it.”
― H. James Harrington


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