Almost every advanced and adroit Forex keeps and maintains the journal. It gives them a rare kind of edge over the rest of the traders who do not keep any journal. But things could get a little crooked here.
People may think that only keeping a journal can change their lot and success rate. That’s not how it works. Three are particular criteria that a trader must follow to get the most out of a journal. Several checklists should be checked.
This post will narrate all the required elements and factors that a trader should invest in a journal to make it the most productive.
What Should a Trading Journal Have in It?
The answer may sound quite simple. In a word, a balanced trading journal should have logs of “everything”. A trader records everything he feels and does that before, during, and after the trade.
Trading is a skill of performance regardless of a trader’s unique style and method. One’s outcome will be determined by his skill in analyzing the market environment, his ability to come up with an instant strategy, and his ability to execute his plan.
Numerous variables can take a trader to his success. So, he has to write down anything and everything to determine his strong and weak points.
What to Scribble Down in a Trading Journal
Some of the new traders often get confused when the professional significant importance on it.
In reality, a trading journal is a key to success as it will help you to trade in a disciplined way. Let’s get into the details and improve our skills.
His Self-reflection and Motivations
A trader must be transparent about his self-image. It will help traders find the proper methods for them.
Once someone gets clear about his perception of life, his disliking, and liking, it will be easier for him to understand what he wants from trading foreign currencies.
Market View, Perception and Philosophy
This is the way someone understands the market and frame it. It will determine how a trader will approach a market and tackle different conditions.
It will build the core structure of a trader’s plan. Especially new market joiners should be meticulous while forming their understanding of the market.
Because the wrong perception will lead them to form a wrong and futile plan. So, use a Forex demo account to get a strong perception of the market. The more you study about the market, the higher chance you have to make a consistent profit. So, be strategic with your actions to overcome the challenges.
Market Observations
Every day comes with a new philosophy and condition of the market to the traders. Particular behaviors, tendencies, and patterns arise in the market frequently; most of the conditions will be unique.
If anyone puts some extra care and focus on observing the market, that means, the price movement, to locate those patterns and tendencies, he will find them. And he has to write his observations of the market in the journal.
It will make him come back and reassess that observation after the trade’s closure. It will give him scope to learn his mistakes and new insight into the market.
Mistakes and Passed Opportunities
Missed opportunities and mistakes are just as obnoxious to someone’s success as everything is going against his trade.
Closing trades before the actual time and not taking any valid setups, entering the wrong positions sizes and entry-level, etc. all should have a place in someone’s trading journal. It will work like a go-to book to help traders to avoid the same mistakes.
Performance Statistics
Numerous aspects of Forex trading performance can amount to solid data. It gives him a pragmatic and effective picture of how he is doing in the real market. Following these numbers will make the process more credible for a trader.
So these are all the things that a Forex trader should include in his trading journal.
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Author: Jessica Davidson
