The Dangers Of Micro-Managing Your Trades – Edgewonk Review #8

We just reviewed a new journal from one of our users and the review is a great case study for how powerful the Edgewonk trading journal is when it comes to finding your trading edge.

Although the Edgewonk trading journal has dozens of metrics and features, a trader rarely has to use everything at once. Usually there are just a few things and tweaks a trader must do in order to make the next step in his/her trading and see significant improvements fast.

This week’s trader is struggling with micro-management which means that he is often mismanaging his trades and either exiting winning trades too early or cutting losses too late. We at Edgewonk are aware of this common problem and the Trade Management tab in Edgewonk, along with a few other metrics can immediately unveil problems with trade management. 

Here are the things you should check in your Edgewonk journal if you want to understand your trade management better:

• Is my Planned Reward:Risk Ratio very different from my R-Multiple? Significant differences are the first heads-up and require further investigation.
• Is the green graph below the orange one in your Trade Management tab? Or is the green graph rising?

The second point confirms that you are leaving money on the table and mismanage your trades. Now, the next step is understanding the why behind your actions. For that, you should set up specific trade management comments in Edgewonk that describe your errors, fears or other related problems. Once you start tagging your trades with your individual comments, you will quickly understand what the drivers behind your behavior are. 

Most traders are not very self-aware and never take the time to understand themselves as traders. They only see that their performance is not how they want it to be, but without a personalized review approach, detecting weaknesses and correcting behavior is impossible.

Watch the review below or directly on YouTube:

Do you want us to review your journal? Take a look at our free review service here: Edgewonk’s free review service

We look forward to hearing from you. Happy journaling!