Video Transcript:
Hey everyone, in this video, I’m going to show you how to become a better trader. Whether you are just starting out or already experienced, we won’t be focusing on specific setups or strategies today—you can find plenty of that in my other videos. This time, it’s about getting the most out of whatever strategy you’re currently using by analyzing your own trade data and making small but important adjustments to your trading approach.
Did you know that most retail traders don’t journal their trades at all? I ran a poll on my YouTube channel, and it showed that only 4 out of 10 traders actually use a trading journal. Not having a journal is often the reason why traders feel stuck, even if they’re using a good trading strategy. It’s easy to think you’ll remember all the details of a trade, but the truth is that memory alone can’t handle that much data effectively. Journaling, on the other hand, gives you an objective view and reveals insights you would normally miss.
What you see here is my interactive trading journal. It has some cool features, but you can achieve similar results with a simpler Excel-based journal—you don’t need this exact software.
Here’s an example: For a long time, I thought my most successful trading pair was the EUR/USD. However, through journaling, I discovered that my best-performing pair is actually the GBP/USD. I take fewer trades on it, but the win rate is higher—see for yourself here. I also found out that Monday is my worst trading day, while Friday is my best. Let me show you—this is Monday, and this is Friday. If I had relied on memory alone, I never would have recognized these patterns.
In short, you want to use your journal to identify what consistently works and focus on that, while cutting out what doesn’t. This is how you can improve, no matter where you are in your trading journey. A strategy alone can only take you so far, but journaling will take you an extra step forward.
So, let’s break down the specific elements you should track to make your journal as helpful as possible:
1. Trading Instrument
Which instruments work best for you? Which give you the best results? The key metrics to look at are your total profit and win rate by instrument. Once you identify your top-performing instruments, focus on trading those and consider cutting out the ones with the worst results.
2. Trading Setups
Track each setup in your journal and note which trades are based on which setups. This allows you to see which setups perform best. Personally, I get similar results with my main three setups: the volume accumulation setup, the trend setup, and the rejection setup. However, for you, it might be different. Focus on your top-performing setups and eliminate the rest.
3. Trading Days
Certain days might work better for you than others. Some traders perform best on Mondays, while others excel on Fridays. Knowing this can save you from making poor trades on your off days. For me, Monday tends to be my worst day, so I’m more cautious then. On the other hand, Friday is my best day, so I rarely skip trading on Fridays.
4. Trading Sessions
Identify which trading session works best for you—whether it’s the Asian session, the European session, the US session, or the overlap between the European and US sessions.
5. Time Frame
Different time frames can yield different outcomes. You may find that you perform better on shorter or longer time frames. Tracking this will give you a clear answer.
6. Risk-Reward Ratio
Tracking your risk-reward ratio helps you understand how much you risk relative to your reward. I recommend starting with a risk-reward ratio of at least 1:1. As you gain more experience, aim to increase it. For instance, a 1:2 ratio means you gain twice as much as you risk on a typical trade. Remember, your win rate and number of trades aren’t the only factors impacting your overall profit; your risk-reward ratio plays a big role too.
Now, let me show you how this works in my own trading journal:
I focus mostly on major currency pairs, especially the EUR/USD, as it provides my best results.
I rarely trade on Mondays and, if I do, I’m very selective because Mondays are my worst days. On the other hand, I always trade on Fridays since they’re my best days.
I use three main setups but prioritize the trend setup because it delivers the best results.
While I’m comfortable trading in any session, I primarily focus on the US session, as it gives me the best outcomes.
My typical ratio is around 1:1.5, but I aim to shift toward 1:2, so I would gain twice as much as I risk on a typical trade.
Tracking these details has helped me focus on what works best and make smarter changes to my trading.
Now, let’s focus on you. If you’re not tracking your trades yet, it’s time to start collecting data. Once you do, things get really interesting. I recommend tracking the elements we discussed earlier:
– Your best trading instrument
– Your best trading setup
– Your best trading days
– Your best trading session
– Your best time frame
– Your risk-reward ratio
Once you have data from at least 100 trades, analyze your results and adjust your trading strategy accordingly. Repeat this process periodically because the more data you gather, the better your insights will be.
That’s about it, guys! I hope you enjoyed the video and found it helpful. Don’t forget to like and subscribe for more content like this. If you’d like my help with your trading strategy or indicators, head over to my website, Trader-Dale.com, where you can enroll in one of my trading courses. Or, if you want to trade alongside me and other prop firm traders in a live trading room every day, check out our Funded Trader Academy. Thanks for watching, and I’ll see you next time. Until then, happy trading!
