- What Is A Binary Options Trading Journal?
- What To Include
- Using The Results
- Personalization & Organization
- The Best Templates
- Final Thoughts
- How Does A Binary Options Trading Journal Work?
- What Should I Include In A Binary Options Trading Journal?
- What Are The Best Formats For Binary Options Trading Journals?
- How Can A Binary Options Trading Journal Help Me?
A binary options trading journal is a great way to evaluate your trading results and make improvements to your strategy, mindset and overall approach. This guide looks at the best templates for beginners in 2023, from free Excel spreadsheets to software that integrates with your online platform. We also unpack tips and tricks for making binary options trading journals more effective.
What Is A Binary Options Trading Journal?
A binary options journal is essentially a log of all your trades. Collated in an easy-to-digest format, traders can then conduct analysis to identify common patterns, mistakes and areas for improvement.
For example, your journal might show you that a particular period of the trading day is when most of your trades finish in-the-money. Equally, it might highlight that your binary options news trading strategy often leads to losses when you speculate on emerging crypto tokens.
Binary options trading journals can be developed and maintained through a variety of methods. Many traders opt for straightforward spreadsheet software, such as Microsoft Excel or Google Sheets. Other solutions include a simple pen and paper or a PDF download. These are good, free options for beginners on a budget.
Alternatively, some traders use specialized software such as Edgewonk and TraderSync, which have been specifically designed to help users analyze their trading performance and pinpoint areas for improvement.
Some of these solutions, including TraderSync, can also integrate with your online trading platform to automatically log your trading data. This makes the software really useful, but binary options traders will need to weigh the benefits against the subscription fees (TradeSync starts at $29.95 per month).
What To Include
A binary options journal can be customized based on what you want to get out of the trading log. However, there are several components that often form a good template:
- The date and time – 09/11 at 14:30
- The underlying asset – Bitcoin (BTC)
- The binary option – High/Low
- The position size – $500
- The potential payout – 75% or $375
- The trade/prediction – Price increase using a High/Up option
- The strategy/indicators used – Pivot points with support and resistance
- The emotions driving the decision – Impatience
- The result – Out-of-the-money
- The profit/loss – $500 loss
Using The Results
Using the example above, it could be that after collating the results of multiple trades you start to notice a trend where your binary options trades finish out-of-the-money when you use pivot points.
This could tell you that perhaps pivot points alone may not provide enough of a guarantee that the price of an asset will stop at or reverse at the levels on your chart. As a result, maybe you need to try incorporating other indicators, such as MACD or moving averages to validate your predictions.
Other key patterns and considerations that can emerge from keeping a binary options trading journal include:
- The times and assets with the most lucrative payouts
- The indicators and signals that often lead to winning trades
- The feelings/emotions that frequently crop up when you make losing trades
- The type of binary option you make the most money with, for example, high/low binaries versus touch/no-touch or boundary options
A helpful tip for beginners is to make use of binary options demo accounts when acting on the findings from your journal. Many of the best online brokers offer free practice accounts, meaning you can test various strategies and binary options products. This is a good place to make changes in a risk-free setting.
Personalization & Organization
Your binary options trading journal doesn’t have to make sense to everyone, it just needs to make sense to you. You can use shorthand and abbreviations when writing up your thoughts, for example. As long as you can come back to previous entries and understand the details of the trades, customize your journal however you see fit.
This can include:
- Using a table format
- Highlighting lost positions
- Changing text colors to emphasize key notes
- Using shorthand or abbreviations to describe emotions
- Having multiple sheets/logs that separate trades using different strategies or assets
The Best Templates
There is an abundance of trading journal templates scattered across the web, giving you lots of choices. However, our top pick is a simple Excel. A spreadsheet comes with many ‘quality-of-life’ features over traditional pen and paper. Digital workbooks are easy to amend and edit, can automatically display statistics (such as win percentage) and highlight key points.
A spreadsheet can also be accessed from anywhere via mobile devices, laptops and desktop computers. This flexibility gives it an advantage over other recording methods. The other benefit is that traders can easily personalize Excel templates to get the most out of a binary options trading journal.
For traders willing to spend money on software, Edgewonk is a good option. It provides detailed performance metrics and emotional analytics. It also offers a simulator and is compatible with a range of trading instruments and assets.
Binary options journals are a useful, it not often overlooked trading tool. For beginners, in particular, they can be used to develop a structured and consistent approach to trading. An accurate activity log will also make it easier to pinpoint patterns and areas to make targeted improvements. Use our article and tips to create and maintain your own binary options trading journal.
How Does A Binary Options Trading Journal Work?
A binary options trading journal is essentially a record of all your trading activity. Investors enter the results of their trades, along with the key parameters, and then conduct analysis to identify trends and opportunities to make improvements.
Binary options traders can download free templates online or pay for professional software that offers advanced analytics and which may sync directly with your online trading account.
What Should I Include In A Binary Options Trading Journal?
The key information to capture includes the underlying asset, date, time, expiry time, type of binary option, stake/risk, win/lose, profit/loss, win percentage (daily/weekly/monthly/yearly/all time), the strategy used, your state of mind, tools and techniques applied, and market conditions.
The more you include, the more insight you can gain when it comes time to review your binary options trading journal.
What Are The Best Formats For Binary Options Trading Journals?
In general, the most convenient method for keeping a binary options trading journal is to use spreadsheet software like Microsoft Excel or Google Sheets. Other methods include physical notebooks and specialized trading journal software. Spreadsheet software is typically the most popular due to its ease of access, flexibility in use, in-built calculation functions, transferability, and multiple templates.
How Can A Binary Options Trading Journal Help Me?
The purpose of a binary options trading journal is to help you identify factors that are essential or detrimental to your profitability. By keeping an accurate journal, you will be able to find points of weakness and make the necessary adjustments. Journals can also help you develop a disciplined approach to binary options trading.