A few members requested me start a journal after I posted a pair trade I took in december here http://www.aussiestockforums.com/for...ad.php?t=13560 I thought I would go ahead and start one to show how its done, It amazes me how many traders only use technical analysis or breakout/reversal trading systems to find and execute trades, let me tell you professional traders use arbitrage to make money on a consistent basis, and the simplest form of arbitrage is pair trading also known as statistical arbitrage, market neutral trading, long/short equity investing or relative value arbitrage, with this style you aren't reliant on market direction or conditions to make money and the relationship between two highly correlated stocks is more predictable than the outright direction of any given stock. This is the strategy most hedge funds use, Il post my ASX pair trades and analysis here for all to see, Il try and post my entry and exit prices as close to real time as possible, if not after market close when I have time, please don't judge each trade by itself, I wouldn't have a clue of the result of the next trade, I know that after 10, 20 or more trades I will outperform the market in terms of risk, volatility and return. Successful trading is all about making heaps of small trades that you have a edge with. I know there are a few other pair traders that hang around here too, please feel free to chime in guys. cheers.