There are so many Forex blogs out there. Sometimes I think too many actually. But some of them are pretty useful (like ours, of course) and a common advice I’ve seen repeatedly is: traders should always keep a “trading journal”.
I get it. It sounds like they are asking suited men to write a diary as 13-year-old girls do. Well… Let me tell you this: writing a trading journal not only reflects a true professional attitude in you, but also shows your willingness to learn and become a good trader.
Why you should keep a trading journal? Excellent question. Here there are four reasons:
- Understanding yourself: finding the words to describe yourself and your situation in life will allow you to see a clearer picture and the possibilities you have in the near term.
- Measure, measure and measure: quantifying results is an important part of being a successful trader. Did you come out too early, too late? Why? How did it feel?
- Your best and your worst without cover: writing down your emotions helps you to become emotionally unattached to some situations in life.
- Improvement: I mean… if you’re going to take the time to register every and single one trade, then you better do it for a good reason. Not all of us have the chance to study finances in University or courses, a journal can easily turn into a coach.
And of course… you start to wonder what are the key components of a trading journal. Basically, you have to write down everything that determines the way you trade:
- Entry trigger
- Position size
- Trade management rules
- Trade retrospective
Trading in the Forex market can be difficult. Even more when you trying out different strategies. Keeping a trading journal is worth it. Try it out. Tell us your opinion.