Forex trading journal is one of the important tools to carry on your trading professionally and successfully. It’s not a modern gadget but a log of your trading activities. Let’s see how useful a trading journal is for forex traders.
Trading journal and the benefits
By using the journal, you can learn a lot about the things you do in your trading. More importantly, you could know whether your activities are right or wrong. And you can make your trading strategy a better one. In anything you do, you can always be better. So, keeping a trading journal will be good for your trading. In the end, it would turn out to be one of the best decisions you made as a trader. It helps the beginners to find their trading style, which otherwise could be a tough decision to make.
A beginner trader would try various forex strategies, and his trading journal helps him to find the best performing one for him. A trading journal usually has details about your entry & exit time, the entry & exit price, time of holding your position, loss, gain, and reasons. The details of your trading journal depend on your willingness to include as many details as possible. It can contain many numbers of columns and rows with details to make your analysis an easier job to do. When you become experienced, you would begin to add more columns to add more variables to your trading strategy.
In the course of time, the journal will be helpful in improving the trading style you have chosen. As learning forex trading is a never-ending process, professionals always prefer to have a trading journal. The moment you stop the use of your trading journal, you enter the risk zone of your trading. You will lose the opportunity to find potentially better ways to trade. Further, your trading journal also helps to know your consistency in trading which is important to make profits in trading.
In most cases, failures in trading are due to not the inability of the traders. It is the result of not following the rules consistently. You have to go back to your trading and analyze the entries in a regular interval to get the best results. Your trading journal clearly indicates what parts of your trading strategy are working and what is not. Then you can remove the variables that have a negative effect on your trading and improve the variables that support your trading. It also helps you to keep track of your emotions during trying times. You can rectify the negative impact your emotions have on your trading. With your trading journal, you can easily calculate the number of pips you made in a particular period of time.
Have your trading journal and make more pips!