Success in almost every profession depends on logging progress to analyze improvement. 

Runners track their speeds to see improvement. 

Businesses track their leads to monitor conversions. 

Websites track their click-through rates to calculate customer activity. 

Trading is no different, and in fact, successful trading requires more detailed number crunching than almost any other profession. Data-based performance trackers matter more than anything. 

Without statistical confirmations of strategies and general performance, traders can easily find themselves on track to reach their goals without feeling successful or repeating errors while feeling like improvement is happening. But a data scientist would never find themselves in either situation because they carefully measure what happens during their day-to-day trading. 

Why Performance Data Matters for Traders

Traders can either assume they know what is going on or they can actually know. 

In crypto, novice traders all too often assume they know things they really don’t. And the leading exchanges, market analysts, and other traders are rarely instructing or advising new participants to track their results. So, journaling seems nonessential to success. 

But every trade is loaded with various types of data. 

• Type of Setup
• Level of Conviction 
• Amount of Risk
• Risk-to-Reward Ratio
• Time of Day 
• Trade Duration 
• Circumstantial Events 
• Reasons the Trade Failed or Succeeded 

The more trades some takes, the more powerful their performance data set becomes. Every bit of recorded data compounds in value and provides uniquely valuable feedback. 

How to Use a Trading Journal

There are two basic ways every trader can decide to track their progress. 

Manually enter trading data in a spreadsheet or notebook. 

Automate trading data imports with a software journal. 

Obviously, one of these methods requires exponentially fewer hours than the other. And manual journalling is often ideal for inactive investors who rarely manage their positions or pay attention to market movements. But active traders need a much less time-consuming solution to allocate their every valuable minute to planning their next trade and observing the market. 

In short, this is why Coin Market Manager was created. 

Every bit of trading data is automatically synced to a user’s dashboard and funneled into dozens of personalized tables and charts that breakdown historical performance and per-trade statistics. 

Journaling Introduces Accountability

Time is one of the biggest reasons why traders don’t use a journal. But CMM fixes that. 

Accountability is the other reason. 

Instinctively, no one likes to be told they were wrong, let alone chose to be reminded of their mistakes on a daily or weekly basis. Yet, that is exactly how traders improve – by reviewing their mistakes through detailed data tracking, and adjusting their execution to avoid repeated errors.

Traders should always remember that trading is a game of speculation. The goal is to become profitable by limiting random results and achieve consistency. Tracking performance data helps with exactly that. 

The quicker a trader becomes accountable to themselves (and their journal), the faster they improve. 

Make a trading journal for free today.