Every person differs from one another and so is the same with the traders. They differ from one another. And in forex trading journal with the difference in each and every individual therefore it is necessary to record some items in forex trading journal and they are as follows:
• Reason for entering the trade
• Exit plans for making profit and stop loss levels
• Result of the trade
• Size of the trade
• Experience about the trade
A quick and clear reference is necessary and should always be included and you should know the reason for entering the trade in trading journals. You can also confirm all the trading strategies from the data-points from where you have recorded the decision about buying and selling the trade which is a profitable trading strategy.
Experience about the trade is also another important thing in trade. For a new trader emotions are of great influence and therefore they take emotions more important than trading plans. In trading maintaining your feelings and emotions are very important else you will surely look back and may feel negative about tour trading plans but sometimes it may work well. You may find your trade plan going well and promising and therefore you just placed it so as to hit the stop loss.
Evaluating what is lacking behind your trading strategy is also possible with the exit plans, size and the trade and its working. In trading you may sometimes feel that small position is better and will help you loyal in your trading strategy than a position size which may become risk while trading. Therefore in order to know the different types of trading strategy you need to ask certain questions so that you can analyze them carefully.
Importance Of Forex Trading Journals
For every trading plan trading journal is very important and is like a double face of a single coin which has different meanings and works independently and also gives different opinions. They are always proportional and cannot make sense without one another.
Knowing A Trading Journal?
In order to remember the past trades the traders keep a record which helps in improving their trading strategies and plans over a particular period of time and is known as a trading journal. For example in while playing football the players from the American football team tries to find out the weak points and the strength before playing each game.
And while playing golf also players tries to find out their swings so that they can find out any wrong on the course and therefore after reviewing they practice to their best level before playing to increase their playing skills and control their hip movement. So, as a trader keeping trading journal is very important for creating a document about the trend in trading.
Therefore a trading journal helps in making trading plans logical and also important for psyche. Last but not the least you need to search and find out how trading journal maximize your profit potential and minimize financial loss and emotions.