Keeping a Trading Journal: Why You Should do it

Keeping a Trading Journal: Why You Should do it

When you’re trading, you cannot just play everything by ear. You have to have a plan and you have to be aware of how the market and trading work. And if you’re able to do those thing, you should be able to record them. And where? On your trading journal.

Trading journals are very useful for Finance Brokerage Education traders who want to continue learning about the trading market. He or she can monitor his or her improvements, accomplishments, and failures via the trading journal. Even more so, it keeps him or her grounded on the facts of his or her trading career.

There are plenty of reasons to keep a trading journal. The following are some.

It defines you as a trader and your situation

The things that you record on your trading journal, once you review them, can paint a picture of who you are as a trader and what your situation is.

You can see on the trading journal how much you have improved since the first time you tried to make your first trade. That’s your square one, and you can compare it to where you are right now and see if you have made progress since the beginning of your trading career.

Knowing where you started Forex Trading Guide and how much you’ve grown as a trader can tell you what your trading personality is, if you haven’t found that one out by yourself.

It helps you check how you do with your trading plan

Before you start trading, it is imperative that you have your own trading plan. You cannot enter a war without as war plan, and trading is just like that.

And when you start out, you start out with the first step in your plan, and then the second, and then third, and so on. As you go on, it’s easy to get side-tracked and distracted. You might even have to deviate a bit or more from your plan.

As you do those things, it’s also easy to get lost and not remember at which step you are in your plan. Keeping a trading journal fixes this situation. You can easily flip pages and dates back and read what you have recorded there, ideally the plan you have hatched before the deviation came.

The more detailed your trading journal is, the better it can help you in situations like this.

It provides a way to teach yourself some lessons

Aside from monitoring and recording, a trading journal is also serving as a tool for you to learn something from yourself.

When you review things on your trading journal, you might stumble upon insightful things that you have observed that didn’t make any sense during that time but now means a lot—because you’ve already learned something.

You also get a good look at your weaknesses and strengths when you are trading. You might not be aware of it at the moment of trading, but you’ll see that a well-kept trading journal shows just how great or how poor a trader you are.

Category Finance

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