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Friday, September 28, 2012

Becoming a better trader by using a stock trading journal spreadsheet

Stock trade analysis is possible via digital trading spreadsheets
Stock trading spreadsheets organizing trading data
By Trade Analyzer

What is a stock trading spreadsheet?


A stock trading spreadsheet is a tool that helps traders keep track of their performance. The goal is to determine which trading strategies have been successful in the past, and which have not, and why. Many stock trading spreadsheets are based on widely-used programs like Excel and are customizable for different kinds of products, such as stocks, options, futures, Forex, ETFs and equities.

Stock trading spreadsheets allow users to keep abreast of market trends, plan and track trades, print data reports and make use of financial reference tools. Performance data can be used to identify stock patterns, trader “errors” and trader “strengths.”

What does it do?


Stock trading spreadsheet programs can backtest trading strategies to show whether or not they’re likely to produce a profit. Traders can avoid making a costly guess; they can move forward based on data rather than hope. For example, if a trader believes that a stock or group of stocks will perform a certain way under certain market conditions, he can test his guess to see if it’s performed that way in the past before he commits his money.

Some stock trading spreadsheet programs also calculate the odds of a trader making or losing money at any given time based on factors such as the amount of money invested, the risks assumed, and the number of trades, among others. Some programs provide trading flags to alert traders to risk or opportunity. Others offer analysis based on data entered. Spreadsheet programs may also help traders stick to their chosen strategies when they’re tempted to trade on emotion, especially if the data shows that trading on emotion didn’t work out in the past.

What are the advantages?


The main benefit of a stock trading spreadsheet program is that it tells traders how well, or how poorly, they’re doing in the stock market. It may keep some traders from throwing good money after bad, or inspire them to study the market more before committing their money to trades.

The program may prompt traders to think about why they’re making trades, and to base those decisions based on facts rather than feelings. The standard disclaimer, “past performance is not an indicator of future results” still holds true, but a stock trading spreadsheet program may force some inexperienced traders to analyze risk and the odds of success before plunging into the market.

Download MyTradeAnalyzer's free trial and try the stock trading spreadsheet risk-free today.

Image license: RWLinder; RGBStock.com 

6 comments:

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  4. A good option for all the traders to keep record of their performances.

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