Edge-Forex Forex
journal forex forex trading

Trading Journals

There is never time to do anything other than research and discover a potential stock worth trading in. Maintaining a trading journal may be low on their priority list in such circumstances. 

The trading journal should be given the attention it deserves as a tool that can be invaluable to any trader.

A Trading Journal

A trading journal is a diary that a trader keeps of everything that happens at work and the thoughts that come to mind regarding his trading experiences. 

It is similar to a diary, which some of us prefer to keep in order to record what happened in a day and how we felt about it. The only difference is that a trading journal is not a personal diary, but rather a professional journal. 

Most trading journals are a log of trades and contain specific information about what was bought and sold.

This can also include data points such as the entry and exit price, the quantity traded, the basis for taking that position, and other such details. It can also include the target, the stop loss, and notes that record future insights and action items. 

A trading journal can be a free-form, highly customizable diary, but it should contain only the most important and impactful points of data and information to facilitate future trading. 

As a busy trader who must constantly update himself on information and data, trends and patterns, there are many advantages to keeping a trading journal, and here are some compelling reasons why you should as well.

The worth of trading journals is best understood through the obvious benefits they can provide if kept meticulously.

Capture and record data and events

One of the most significant advantages of a trading journal is the ability to capture and record all actions taken during a session or day. 

This diary is a first-hand record of all the trades you made during a given time period and can serve as excellent reference material for you in the future. It’s the kind of library you can build bit by bit, day by day, that will eventually be a gold mine of information.

Notes and observations

The personal level notes and observations you make in a trading journal set it apart from widely available, general charts and data. This nuanced and relevant databank of insights adds a crucial layer of intelligence to all of the generic data. 

The more specific and textured your comments, the better the net output you can infer. When executed properly, these may be more valuable to your future trading than many market reports and analyses.

Review, identify and learn from your trading journey

With so much data and information in one place, this becomes the ideal compilation of your trading history, complete with accomplishments and blunders, highs and lows. 

This could be the best learning and revision material for gaining insights into what you did well and reviewing decisions that did not go well. It’s like having your own coach and mentor guiding you and correcting your mistakes while also motivating you to do the right thing.

Self-appraisal and goal setting 

When you want to evaluate yourself and your performance, you should keep a journal. 

It can also provide you with a roadmap for the future by evaluating your past performance and directing you toward new goals. 

The trading journal can be both a mentor and a boss!

Course correction 

Another useful benefit that trading journals provide is the ability to provide insights when you make or are about to make a mistake. Look for parallels and similarities between the present and the past in the previous entries. 

This is analogous to having a much more experienced colleague or even a mentor advise you to change course if things look bad.

A well-kept trading journal is jam-packed with data and information. This can be a goldmine of intelligence that can point the way forward by spotting trends and catching patterns. 

This feature can alert you to opportunities that would otherwise go unnoticed in the midst of the trading frenzy.

An outlet for emotions

Keeping a diary is an excellent way to let go of pent-up emotions. As a result, a trading journal can be the ideal outlet for all of your emotions – positive and negative – so that you can return to the next trading day fully relieved. Depending on whether the entry was a hit or a miss, these observations can also be a source of motivation and learning.

#edgeforex #Forextrading #Forexsignals #forex #trading #journal #list #diary #entry #notes #revies #emotions #lessons