Blog about analyzing and improving trading performance 2/3

What is payoff ratio ?

There are so many trading metrics out there that it is hard to understand them all. Yet as we have shown on this blog some of them are very important and can help you to analyze and improve your trading performance. Today we are going to look at the payoff ratio. It’s a little bit less known, but does this mean it’s a hidden gem? In this article, I will try to explain what the payoff ratio is, how to calculate it, and if it's useful.

The Risk of Ruin (and why you should know yours)

When you trade financial markets there’s always a risk of losing money. Traders who fail to use proper risk and money management might end up losing a huge amount of money or blowing up their accounts But what if you actually try hard to use proper and good risk management, then what’s the change you might blow up your account in the end after all ? The answer might surprise you and your risk of ruin might be higher than you think. In this post I am going to try to break down the Risk of Ruin for you. Hopefully after reading this article you have a better understanding what the Risk of Ruin is, why it’s important to know your own and how you can calculate it and improve it.

Do professional traders use technical analysis ?

As a beginning trader, you will encounter the term technical analysis and fundamental analysis pretty soon. Somehow there has always been heated debate between traders on which one is the best and why the other one doesn't work. In this post, we’ll discuss both types of analysis and find out if they work, which one is most used by professional traders, and give you some tips on which one might be suited for you.

What should be included in a trading journal ?

Trading journals are a great way to analyze and measure your trading performance. They allow you to spot any mistakes you might make and track your progress on improving your trade executions, discipline, and controlling your emotions. That’s why sooner or later most traders start a trading journal. But what should be included in a trading journal? In this article, we will look at the 14 most important things and explain why you should include each of them in your trading journal.