#5 Forex Basics: How to Save 1.5 Years on Your Way to Profits | Hana Stejskalová | Skillshare

#5 Forex Basics: How to Save 1.5 Years on Your Way to Profits

Hana Stejskalová, I always look for doing the things better way

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7 Lessons (25m)
    • 1. Why to Enroll

      1:32
    • 2. Where to Keep Trading Diary

      2:23
    • 3. How to Divide Your Diary

      2:25
    • 4. Mechanical Part

      7:31
    • 5. Emotional Part

      3:52
    • 6. Pictures Part

      4:30
    • 7. Conclusion

      2:28

About This Class

I started trading because I believe that times, when you went to school and found a good paid job, are long gone.

Don't get me wrong, it is not the only way how to make money today, but I was pretty good when working with numbers and trading appealed to me.

The aim for FX Basics series is to make you stop devastating your trading accounts and slowly increase your profits.

We will talk about, what I learned so far, 3 basic topics of trading:

PSYCHOLOGY

MONEY-MANAGEMENT

STRATEGY

I will share with you all my experience, what influenced me and what I find most valuable when heading for success.

Today, we're going to focus on your trading diary. You'll find out:

  • why you should have trading diary
  • how you should keep records of your trades
  • what specifically you should track in your diaries and how it can help you

Next stop you can have a look at are those courses from FX Basics series:

  1. How to Start on Forex
  2. Trading Tips for Beginners
  3. Winning Mindset that Brings Profits
  4. Money-Management

I wish you good luck when working on your way to financial freedom.

Don't stop until you succeed - you can't lose if you don't give up! :)

Transcripts

1. Why to Enroll: since November 2000 for being. I have made several hundreds off trade about the true face that they had little or no benefit for my trading strategy and wise death because there was no way how to make my trading strategy and, more importantly, my money management better. This is how my trading day looked like in the 1st 2 or three months off my trading. No, it's not a mistake. You see it correctly. I didn't keep any record off my trades. And guess what? You can't improve your trading strategy. Niedere. Your money management if you don't have any data, which would tell you how you are doing, and this is what this course is going to be about, how to record your trade, where to do it and what to include so you can improve your trading strategy and money management. It took me almost two years before I got to today's version off my trading diarrhea, and I believe that in following years I will change it again so it fits better my needs. If you want to benefit from my experience and improve your trading faster, click in the rubble and see you inside. Of course, 2. Where to Keep Trading Diary: Let's start at the beginning. Where should you keep your records off? Trading. When I started, I used old fashioned pen and paper way it has, I guess, only one advantage, and that is that you don't have to sit at the computer of an analyzing data on every other aspect. I would prefer spreadsheet and the best solution Google Sheets and Wise Dead because it is perfectly flexible. Is there anyone who would love to share your results with simply enter his Gmail on Charrier documents your computer has broken. Never mind every day that you wrote to your trading. Diarrhea is clean and safe on your Google drive. I'll give you a very quick right on how to create your trading diary on Google Drive. At first, create your in my orders. I won't explain this step. Then sign in into your Google account with your Gmail and password. I already did that in this menu. Choose drive, and this is Google Drive interface, where you can create new files and folders. You have 15 gigabytes off space free to use. If you wish to create folder, simply click new and then folder and name it. For example, trading. Click Create on Dhere it this now for creating a she document in the folder. Choose again you and they're choose Google Sheets. New window will open. You can rename it, for example diary. And that's it. You've just created your trading dire file. Now all you have to learn is what you should put in your training diary and what is a waste off your time? 3. How to Divide Your Diary: This is how my first real trading diary looked like. There was almost nothing useful for further improvement at that time. I thought, that's gonna be okay. I don't need much more information. I don't know my success right, and it's going to be enough. Well, I was wrong. The success rate is not enough. Imagine this example. You have 55 success rate. Make 10 papers on winning trade, but lose 60 pips on losing trade. Then you won't make any money. This is something I forgot to include in my trading diarrhea. All I had was success rate. So how does my trading dieter look like today? It is divided into, let's say, three basic sections with some subsections. It is mechanical, part emotional part and pictures and Rideau three sections. The first do exist because rating is combination off mechanical and emotional skills. You can set your stop loss and profit target mechanically, but you can be mechanically afraid off losing trade. The first section is something I can measure. It can tell me that I should increase my profit target or decrease my stop loss. It is written in numbers, and it is excellent for making statistics. The emotional part, on the other hand, requires more space and different types off explanation, which would mess up my beautifully clean statistical data. And the last one pictures is there because you can describe everything with words only sometimes you remember pictures better if I have some really nice straits. I want to see how they develop during that right so I can repeat it, and off course, vice versa. I want to see how the verse traits developed so I can get out before it hits my stop loss. 4. Mechanical Part: okay so far, you should already know that trading diary is a must for your trading success, where you can keep your trading, diarrhea and also how it should be divided. Let's have a look at mechanical part off trading, diarrhea. This is my mechanical part. Off trading, I will explain to you why I choose exactly those things to track one after the other. So you can decide if this is interesting for you or not. The first column date. It's like I d for me because thanks to date, I'm able to find pictures off my great Let's have a look at the losing trade on 21st July 2016. I will open my Google Drive folder than I choose record, then July, then Swink. Andi. Here it is because I make notes right into the pictures. I know immediately what happened that day, and Vitus traded and worked out another four columns. Day duration, currency pair on direction. Our general information, which are not that important. It could be in case you lose 80% off your crates on Friday. And this is exactly why I keep this information. Next column. It's a prevails. They're afraid or loss so you can always find how you are doing. It's only for making it easier, so you don't have to search for it anywhere else. And now it's time for the core off the trading diarrhea potential. This column is valuable when you would like to find the right place for your profit target . This is something where we can differ in opinions. You can set your profit targets mechanically like I do, or you can set your profit target according to the market. It is up to you. But even if you set your perfect target according to market conditions, you should keep at least for a vile track off your potential. Maybe you will find that you would be better with mechanical profit. Next two columns are profit or loss on single position. Those are linked to potential column. If I see that there waas a potential on a trade off, 24 peeps my profit on the first law roles 20 pips and I still took only 16. Then I we have a problem with following my rules. Second blood is connected with trailing stop loss again. If there was a potential off 35 tapes. But at first my second lot was stopped out on two babes. Then my trailing stop loss is too tied and I should change it a little bit. Another column Orginal profit Target says What off the aim of the trade? 20 slash forte means that I wanted to take 20 peeps on first position and fourty on the 2nd 1 This is important because if I didn't know that my aim for that position on the first lot was 20 tapes and to not 16 then I would thought that 16 Pips is all right and everything is fine when it isno next free. Colom's Give me information about my Stupples No 1st 1 full stop plus has no special meaning. I could look at orginal, stop close and then own first lot and second log. And if the numbers are the same then yes, I have full stop loss. This column Do this for me. I can probably remove these one and nothing will happen. The only advantage of this is that if 70% off traits are not full stop loss, then I know that I can make money even with lower percentage rate, because There is some space between stop loss and real loose. I take next to original Stop off and against our another core columns in trading diarrhea. Thanks to those two, I know what I can do with my stop loss against Callum. Tell me how far against my position market one. If there is one in the column, that means that I was losing ground paper before market reverse and went to my profits. Original stop blows is what I was prepared for. You can see my basic stuff blows is 15 pipes, but the best positions were approximately one or free beds against me, so there will be probably huge potential for increasing profits in the future. Why in the future? Because those are only 10 traits, and that is not enough data. Be sure you have enough information before you change your trading strategy. I was doing it consistently in my first year off trading. I took a training spinal dry aged 20 raids and tell Ah, different working. Let's find another one. Please don't do it like I did. I said to myself that before I can change the rules, I need at least 58 rates 100 is better, but we've spent rates per month. It is pretty long time. You can also go back to this data and you will have enough information, but I still can't get into it. It was so when back testing you will definitely remove your psychological emotional part and it means that the information is distorted and final two columns are another court information After closing ISS one off the newest part and I'm still getting used to it. This should tell me what market date after my last position was closed, did it skyrocketed or bottomed? Should I increase stop loss so I can take more profits? Those are questions which should be answered by this calm, and the last one is trading Sino. It tells why you take the trait I have two basic sign ALS are already Berizzo, plus Fibonacci and confluence. Sometimes those to sign ALS give me the same price. So they are in the same row 5. Emotional Part: emotional part of trading is something which is sometimes hard to explain and in my case, more importantly, hard to measure. As you should already know from our recent course, psychology equals to 50 up to 80% off your trading success, so we can just skip this important part in our trading diarrhea. It is important to understand that emotions influence you not only during the trade but also before and after the drapes. So be sure you drag also those emotions as an example, Let's have a look to my psychology part. There is this note on the third line when I realized I'm influenced by the result off announcing I was able to find 15 more price levels to Drake. This usually happens to me before trading when I start with trading in the morning, sometimes during denied market does really nasty things. So when I opened inject Raider very. I'm doing analyses. I just tell to myself, Oh my God, this is another stupid day where every trading level is kicked out because off announcing this mindset closed my ability to find another trading levels because I already decided there is nothing to find as you can see. There is not only emotions on this trading diab age. I have also some important notes about trading strategy, sidles, investments and so on. Before dead, I was writing those nose in the last column off my conical part, as you can see here, but then it got really chaotic. And as I already told you, it is hard to measure the second part off my psychology part. Our mistakes. There are five basic categories at Mistakes Page, which are connected to main parts off your trading. Those categories are psychology, disciplined money management, analysis and broker. In order to be successful, you have to maintain balance between all of those sections. You can't be successful when you are afraid off losing money. It's psychology mistake and you can be successful when your broker doesn't feel your orders . It's obviously broker mistake and so one. You can probably take discipline and psychology s one category, because usually do mistake will be that you were scared off losing money, which is psychology mistake, but also discipline because you were not able to follow your trading rules. Mistakes are very important, and in this way, as you can see it is pretty easy to decide what I should focus on. If I know that terrible color means psychology and then there are 70% off purple rows, then I should definitely focus on my trading psychology. 6. Pictures Part: a picture is worth 1000 words. That's where I ve include pictures in our trading diaries. They are the easiest part. All you have to do is come back after a day or several hours after the trade, screenshot that right and place it in the correct folder. You can screenshot your monitor by several different options. The 1st 1 is with bring screen key, Then you have to paste it to painting and save it. The second option, which I use s with snipping tool and the last run you can do it in trading platforms themselves. Making pictures is very useful because you could forgot something very important when you were describing the great. Also, when you reach new skill, you will be able to identify mistakes in recent rates which you were not able to do before . How should you store the pictures? Imagine me. I have swing traits sometimes realized sometimes unrealized, and I experiment on demo. Trading will come. That's why I have those free folders in every month of the year. Now what I did at first Waas to create August folder inside August, create free sub folders for swing unrealized in demo and in every folder I created some folders for every day in a month. It looked like this way August swing day and then 1234 and so on. Which means there were for two supporters for every trading situation. And you must agree with me. That is, it is not very practical now what I do now and what I recommend you to use. It's using title of a midge as a filter, for example, four. And as the U. S. D. Swing means that great acute on the fourth off some month, so I don't have to great sub folders for every day in a month. You can also great title like August for Anna's dus de swing. It is up to you. But for me, having command, then trading situation and then pictures is the best social. What should you include in a picture? First of all, if you have more than one price level on the picture, be sure to highlight what price level you are talking about. You know which level it is now, but will you remember it four months later? For the rest of the test? It should include no which are not in mechanical, neither in psychology park, for example, there were long probation right before the price level was tested. This is very important piece off information, but it is not written anywhere. On the other hand, you don't have to highlight or stop losses or profit targets on pictures. This is not about some specific data, but those are already included in mechanical part. Pictures are more about looking for structures and development off the traits. So do note on the picture could look like this It tested my price level went against me, tested, break even on. Then it went on. Stop close. This is exactly what happened with the trade and you can't read it nowhere, but from a victory. Safed. So this is it for pictures category. And in the last video, we will cover what you learn and what you should do to boost your performance. 7. Conclusion: Let's summarize what we covered and learned in this course. Why should I have a trading diet? You can't improve your trading strategery neither your money management If you don't have any data, which would tell you how you are doing how to keep records off my trades because of flexibility and safety, I recommend using Google Drive as a storage for your trading diarrhea. You should divide your trading into free main part mechanical, emotional and pictures. What information should I include in my diary? When speaking about mechanical part, you should focus on things you can measure very well. No shot the best for making any statistical analysis. You also shouldn't forget to include potential against Seidel. And after closing columns in your trading diaries, The emotional part off trading is focusing on things that are hard to measure. What you should remember are those things. Psychology equals to 50 up to 80% off the trading success, so don't escape this important part in your trading diaries. Don't forget to include emotions before and after trade, not only during the trade and the last thing from emotional part include mistakes in your trading diaries. It consists off money management cycle analysis and broker. Try to keep those four things in balance. The last one I spoke about those pictures remember to highlight the price level. You are talking about an inquiry notes, which are not written anywhere else when making nose into pictures. Focus on structure off the market and that's it from me. Now it's up to you to set up your trading diary and start improving your performance.