Importance Of Trading Journal
There is no trading secrects but every trader wants to know the reasons behind a successful trading. The ultimate truth is that trading is all about two major things. One is knowledge and the other one is trading strategy. Using a righ tool, you can carry out your trade without losing more or nothing. And honestly, trading journal could help you much.
To become a better trader, it is mandatory to keep track of your success and failures. A trading journal will do it for you. It could be an automation or a simple white paper.
In the most basic sense, it is a written record of what happened during a daily trading transaction. Your notes may include the market's current conditions, your transaction size, the expiration period of the contract, the price you paid or received, if you were successful, and even your feelings. It's critical that you personalize your trading notebook entries to reflect your unique trading approach.
Keeping a journal at first glance may appear monotonous and time-consuming. It's still a good idea to keep track of your deals, since it encourages you to be consistent and disciplined. Let's take a closer look at the benefits of keeping a trading journal.
Identify trends and patterns:
It is necessary to analyze the market before dive in. Even though you have a fair knowledge on that but trading journal can help you figure out which trading strategies work and which should be changed. Keep a records that charts you use, the patterns you are looking at, and how certain events affect your trade. Over time, you will be able to see the mistakes that are costing you money.
For example: You want to trade the forex pairs on the Deriv platform. And also interested on weekend trading because the trading part is best for the seasonal traders. Suddenly you might find out that you exited a trade too early, or that you set your stops and limits in the wrong places, or that you were fooled by a false signal. Writing things down stops you from making the same mistakes again.
Improve your trading technique:
Everyone wants to pass the trading exam for better outcome. So, it is better for traders to keep a detailed record of their past trades. The record will help them to polish their trading knoledge so that they can better understand their strengths and weaknesses. I think it's good to write down how I'm feeling, because it can help me see whether I'm making decisions that hurt my trade. People who trade need to keep a trading journal because it helps them figure out who they are and how to improve their skills.
Keep track of your progress
The more you trade, the harder it is to keep your progress in perspective. Writing down your goals helps you remember what you want to do. It also serves as a source of motivation: who doesn't get excited when they look back and see how far they've come? A trading journal lets you keep track of your progress as a trader, which can help you become more confident in your skills.
Having a trading journal is a good idea for a lot of reasons. To write in a journal doesn't have to be a big deal. If you don't forget to include the most important information that is useful for your trading style, they can be in any shape or form that you want them to be. How are you feeling? Starting to keep a trading journal is the best thing you can do for your business.
