Speak with any successful trader, and it is likely that keep some form of trading journal. Whether it is notes kept on an iPhone, a detailed Excel spreadsheet, or a physical handwritten journal, the best traders know that identifying the best trades in the future starts with understanding past trades – including your own.
The forex trading industry is a lucrative one indeed, and as a trader involved in the market, you should make sure you exercise every strategy to keep track of all your moves. A trading journal is an essential tool that all traders should have.
Keep Impulses at Bay
When you’re involved in the forex industry, it can be easy to fall prey to impulses every now and then. When you allow your emotions to run high and dictate your decisions, bad moves and losses can be all too easy to make. When you feel an itch to make a trade and take a peek into your journal, you might be able to see all the times you were able to keep your cool and control your emotions. Staying calm and collected during those moments that you really just want to make an unsafe trade can save you a lot of trouble in the future.
Serves as Future Reference
Don’t know what to do for a certain situation? No problem. Your trading journal will serve as a reference containing all the courses of action you may have taken in the past. By looking at the information you jotted down before and reminding yourself of how you handled past situations, you might just be able to bring new answers to light.
Good for Self-Assessment
Learning your strengths and weaknesses can be a big advantage in the world of forex trading. If you keep a journal, you’re likely to find your own unique pattern when making decisions. This will help you identify what you need to improve on, what needs to be changed, and what needs to be empowered in future trades.
Gives You a Plan to Follow
Forex trading can be confusing, even if you’ve been trading for a while. New deals can seem flustering at first, but if you have a trading journal to guide you along the way, you’ll always know which path to choose – no matter the situation. Keep a trading journal in handy so you never find yourself lost in the big world of forex.
Test your strategies with a gold trading practice account, and get in the habit of keeping a detailed trading journal.
