16 August 2023
Why do you need to keep trade statistics?
Forex is one of the largest currency markets with a daily turnover of over $5 trillion. Individuals, companies, and banks speculate on the market every day and seek to make money from changes in currency rates. Although Forex is the world's most volatile and liquid financial marketplace, many traders and investors are eager to start trading here.
One of the important tools traders can use to make decisions is statistics. It helps to analyze market trends, identify trading opportunities and develop strategies to maximize profits while minimizing risk.
What statistics are important on Forex?
Statistical indicators of the trades you open allow you to evaluate the results of your trading and identify its weaknesses. If you analyze trading statistics regularly and correctly, you will not only be able to find the right trading methods but also adjust your strategy for better results.
To keep track of your trading history, you can record the parameters of a trading position that are important to you. These can be the name of the currency pair, date, buy/sell, price, strategy used, stop loss, and take profit.
Another important factor is the reason for the trade. After you have made a few trades, consider whether your reasons for trading have brought tangible results. This will also help you determine whether technical or fundamental analysis is more suitable for you.
You can also create a separate space to record the exit data and the result of a trade. You can select parameters such as stop loss, take profit, or the reason for closing a trade manually.
You can record anything you want in the log. We recommend you add an emotional criterion and write down how you feel when placing a trade, what prompted you to close it, the reasons for changing your trading strategy, and the risk criterion. During the analysis, you will understand the reasons for losses or what actions led to profit.
The easiest way to start keeping a trading journal is to use an Excel spreadsheet or write down data in a paper notebook. It is a good tool for traders who want to test trading strategies and analyze their strengths and weaknesses.