FX Journal can help with your Trade Journaling

How FX Journal can Help with trade Journaling

This is an avatar image of the blog author Ash Dunbabin

To begin this story, I need to tell you how we came up with the idea of FX Journal. For me, I started learning under the Infinite Prosperity Forex Trading system. The really cool thing about this tutorial series is its simplicity. Anyone with average intelligence who is willing to put in the time can learn to trade forex. The series teaches all the basic technical trading elements, gives you a good grounding around topics like ‘the trading edge’, ‘probability’, the importance of ‘mindset’ and most importantly, ‘forex trade journalling’. Good Forex Traders keep a detailed record of their trades - period. But why keep a detailed forex journal I hear you ask? To that the answer is simple, if you are going to grow, you need to keep a detailed history of things you have done right, and of course, wrong! Like anyone trying to lose weight, you keep a starting weight on day one, and everyday you journal what you ate for the day and how much exercise you did. At the end of the week, you weigh yourself again and your results are right in front of you. It becomes very clear, very quickly, that the bad weeks you have probably have something to do with the massive bowl of Spaghetti Bolognese you had for dinner, or the massive bender on Friday night. 

This teaching system gave me access to an excel spreadsheet which I used like a good little student. I fastidiously journaled my trades everyday and week. This trading journal was good in the sense that it had most of the metrics one could want. It did have a couple of limitations though - 1) you pretty much had to use FXCM as a broker; and 2) it was a spreadsheet. This was ok, but one day I opened my spreadsheet to enter my glorious 2% week, and bam! The file had corrupted and I had lost all my trades in that journal.

This got me thinking, there had to be a better way, there had to be something better out there. I had a look around the interwebs, and there were a couple of solutions out in the wild, but none of them really did what I wanted. I wanted a forex journal that would get involved in the whole trading process allowing me to set custom strategies and also my own rules (confluence) to entering a trade, I wanted a forex journal that would keep my trades secure, I wanted a trade journaling tool that I could visually see the metrics of my trades and not be looking at painful spreadsheet columns and cells, I wanted …. well, fxjournal.io.

So being a little bit of a tech buff myself (Web Developer / Hacker) I thought this thing needs to be built. I approached Nick the other FX Journal Co-Founder and Senior Software Engineer (the man that does the complicated stuff) with the idea. Being a forex trader himself, he saw the value in journalling trades and was looking for something similar. And there it was, FX Journal was born and three months later, after many many late nights coding like possessed chimpanzees, fxjournal.io is now live.

So how does FX Journal help with your Trading? Some people use Excel, some people use Google sheets, other people use Evernote and some people use a piece of paper to journal their trades. There is nothing inherently wrong with any of these products. However, what you see on your spreadsheet is all information. But, what does that information mean, and how can you use it? This is where FX Journal comes in. 

FX Journal Features:

 

Strategy Tracking

FX Journal allows you to keep a detailed record of your strategies - the ones that work, and also, the ones that do not work! For example, I learnt that I trade reversals quite well, but trading continuations is not my strong suit. With this information in mind, I still look at continuations, however, I challenge myself to really look at what I am seeing and make sure this is a worthy trade.

 

Currency Pairs

I was able to identify currency pairs that I trade well, and those that I need to do more backtesting and analysis on. For example, I had in my mind that I cannot trade the USDJPY. Nick and I even had a nickname for the USDJPY we called it the Ninja - well I think Nick coined the term (because it breaks into your account and steals all your money). However, after seeing 6 months of trading data, I was able to see that ‘The Ninja’ was in fact not that ninjary at all. It was the EURNZD pair where I was being Ninja’d and taking the biggest losses.

 

Pip Risk Averages

I went through a period where I was getting stopped out very early in my trades due to chart corrections. FX Journal helped me to realise my pip risk average was too tight. I simply added another 10 pips on average and 20 pips on Yen pairs and this made a world of difference to my results.

 

Confluence and Trade Rules

This is very important in my opinion. In the heat of the moment when you think you have seen the next big trade, it is human nature to get excited and start pressing buttons. You starting thinking about all the pips and dollars this trade is going to bring. But you forget your emotional control at this very point. You get taken over by FOMO and all sorts of other emotions. That is why I set some ground rules to taking a trade. FX Journal has a customisable trade checklist which I look at every time before I take the trade live - in fact, this checklist is built right into the ‘Add Trade’ screen. This helps you to stop, pause, and go over a predetermined list. This feature has already saved me a few percent of my account.

 

Metrics

Another important element in trading is the ability to see clear metrics about how your week, month, or year are going in terms of profit and percentage. This leads you see if you are taking big losses and causes you to look at why. I was also able to ascertain that if one of my trades was over 0.5% down, I was better off closing the trade and taking the 0.5% loss, rather than the full 1% loss.

 

There are many more benefits to FX Jounal. We have only just launched this platform, but we have already heard some really positive feedback of how it is helping forex traders just like you. We have a goal, we want to make this the best forex trade journaling tool in the world and thus we have an extensive list of additions that will be coming over the next few months. Not sure? Why not signup for our free 30 day trial at https://fxjounal.io