One of the most important tasks for a trader is to track and analyze all the trades he does. Tracking helps one to evaluate and spot the most profitable trades. It helps to find where the most winnings happen. It further helps to spot the most profitable asset and the most profitable strategy of the winnings. This analysis makes trading easier and there are more chances to win again. Binary trading is a little bit complicated as there are many things to keep track of. Whether a professional trader or a beginner, every trader should keep a binary trading log. However, tracking trading in a personal style is very important because everyone has a different perception and everyone’s proficiency is not the same. Having all the data one needs makes aware of and abolishes the negative impacts.
How to Improve Binary Trading Tracking
There are some basic things one should know about binary trading tracking first. Only tracking the simplest data like entry and exit price is not enough to improve anything. A lot of insights into trading is very important. Though the more data is in tracking the better, tracking everything is not the solution. There should be a balance. Some mandatory aspects of tracking data are entry and exit price, size and number of shares, entry and exit day and time, the underlying asset, P&L $ and %, commissions, notes from every trade, etc.
The first thing one needs to do tracking Binary trading is trading journal software. Improving trading tracking means to improve skills to use this software. A trading log is a tool by which one can record and review his trades regularly and it shows the bigger picture later on. Using this trading journal one can enter data manually or can fully depend on the software when it automatically imports the trading data from the trading broker. To improve the use of trading journal one can follow the given steps:
- Learning the Thoughts: Before investing in Binary trading estimating the market price of an asset is necessary. Winning or losing depends on that investment. Whatever the result is one should note down the thoughts he had before investing. It will help him to review his thoughts before doing that exact investment. In this way, one can avoid making the same mistake twice.
- Taking Risks: It is true that in Binary trade the more risk there is, the more profit will be but the risk should be always calculated. Otherwise, the profit will turn into a loss. To review risks and rewards and take decisions accordingly, a trading journal helps a lot. Even after a month, one can review all the risks he has taken and decided whether to go forward or take a break and come back with a better plan.
- Keeping It Short: The trading journal should be as short as possible but then again all the necessary information should be there. So, choosing the information to put in the journal is very crucial. Traders mostly review the tracking once in a month. Putting too much information during tracking can hinder focusing on the important ones. Moreover, tables and putting information in main points rather than a long paragraph will help to analyze better.
- Using Technology: Doing the calculation or even taking note of information can be done using technologies such as Microsoft Excel. One does not have to do everything by himself now. One can even use such software that can do all the calculations taking information from the broker automatically. Using such software saves time and makes tracking easier.
Avoiding Data Collection Pitfalls
While tracking Binary trading one should avoid some facts so that it does not affect calculating the trading later.
- Not Having Enough Data: To avoid facing problems later one should make sure that he has to take enough important data while tracking.
- Tracking Useless Data: Many traders make the mistake of tracking unnecessary data that makes the journal too long but ultimately useless.
- Jumping to Conclusion: One should analyze the information with enough investigation and researching.
- Being Selective: To select only the important data from the important trades is very necessary.
- Not Segmenting the Data: One should avoid the mistake of not differentiating the data between different trades.
To conclude, this article shows the importance of tracking Binary trading and improving it. The more improved tracking skill one has, the more chances of success he has in trading.