Every Forex Trader aims to succeed in trading. One of the tools that can help traders to achieve their goal is to get a trading Journal. Which benefits does it bring? What makes a good Forex trading journal?
5 October, AtoZMarkets – To succeed in Forex trading, a trader needs self reflection and personal development. Practice or a good trading strategy alone will not take you to the next level. A trader needs to reflect on his or her trading performance on a continuous basis, and learn how to develop oneself. One of the most effective way to manage one’s performance is get a trading journal.
In the trading journal a trader keeps track of and reviews daily trades. Every trading journal is unique, as it assists each trader in monitoring their personal progress along with studying the mistakes made when entering or exiting a trade. On the long-term, the records can serve as the base for enhanced executions and the key to beneficial trades.
Furthermore, possessing a trading journal enables to record feelings, emotions that a trader experienced during a trade. This can help to recognize emotional triggers and thoughts behind each trade. So you can prevent yourself from unplanned actions caused by emotions.
Enhanced performance and skills
When traders consistently keep making records of their performance, they can identify their strength and weaknesses. As a result, they become their own advisers and strengthen the areas or skills that requires attention. It fosters traders to be responsible for the mistakes they make, but also make them reflect the incident. By recognizing what has been done well and what has to be enhanced, a trader can optimize trading skills as well as include them into the trading strategy. Thus, analyzing and examining performance, a trader can have an overview of his performance and plan how to better perform and generate income in the forthcoming session.
What are the key elements of a good trading journal?
Each trader is an unique individual, hence the information recorded in the journal would vary depending on the trader’s style. However, there are key components that each person should consider including in his or her trading journal. A trading journal can’t miss the following items:
Other useful information, that a trader can add in the journal is the of profits or losses of a trade; market conditions on the day of a trade; reasons to enter or exit the trade considering risks, ratio examinations from profits and successful trades.
Download here a professional: Forex Trading Journal
Referring to monitoring of the performance, a trader can include Forex trading objectives and motivation; thoughts and feelings toward the trade; trading mistakes with possible solutions; emotional triggers when trading, and relevant self-review questions. Also, a trader may incorporate future preparations, skills gained or skills to be enhanced and the performance level during the trade session. All in all, traders are advised to get a trading Journal that would help them to progressively advance their trading performance and become successful.
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