What should you consider recording in your forex trading journal?
Trading journals are something that every trader must do because they are effective in tracking performance and correcting mistakes. Trading journals take note of what exactly happened in the trade — everything you felt and did before, during, and after the trade. Performance and other factors like analysis, planning, and execution are significant factors in trading. These things can lead any trader to become successful. Hence, it is crucial to know how well you are performing. Know your best and worst attributes. Trading journals can help in that department.
Let us talk about the contents of the trading journal
We said that trading journals are necessary and helpful, so you want to create one. However, you do not know the exact things to put or write inside it. Here are some of the few things you can record:
- You. You should know how to identify yourself as a trader and know which type of style or method works best for you.
- The market in your perspective. What are your views, observation, and philosophy about the market? How do you see the market? What do you do about the posing risks on your account? How can and do you come up with your decisions? You can also list down what you observe in the market. Every market day is different, and there are instances and occurrences that you can take advantage of if you only watch and observe carefully. If you can catch these instances or behaviors and tendencies, you can make strategies to make better profits and be one step ahead of others.
- Mistakes and corrections. This is a crucial part of journaling: learning from your mistakes. If you missed opportunities or made a mistake, go down the root cause and record it. Recognizing your error is one thing and learning from it is another. Your journal is like a reminder to never make the same mistake twice.
- Your trading performance. Do not sugarcoat how you performed in your trades. If you did great, well and good. If you did not fare quite well, write about it honestly. This is something that can help you know yourself more as a trader. In the future, you will be amazed about your progress just by looking at your performance statistics.
Jumpstart your trading journal and plans.
If there’s one thing that should be considered in trading and journals, it is the trading plan. There are plenty of elements that you should consider in making a trading plan. If you are extra hard-working and giddy about journaling, you can write as much as you can. However, it would help if you did not forget to include the most important ones: potential trading area, entry trigger, position size, trade management rules, and trade retrospective.
You make a forex trading journal because of yourself
We said earlier that there are plenty of things that you can include in your journal. It is always up to you what the contents would. However, remember that you are making a journal because you want to be successful. Hard work pays off, and if you only exert the bare minimum effort, then you might as well expect a bare minimum profit.