+234 802 828 1192Contact Details
Posted on Nov 11, 2016 at 12:20 PM
Many a times you read Forex articles and in it you are encouraged to keep a Forex trading journal.
You wonder why you need to keep one since you are very sure that your broker provide a real-time records of your trade.
In fact, you could be very sure that the real-time record kept by your broker includes margin usage, buying power and the profit and losses of each trade you make.
So you ask yourself, why should I keep a separate forex trading journal?
There are a lot of benefits to keeping a separate and manual trading journal especially to that trader whose goal is to become a professional and successful Forex trader.
What is a Forex Journal?
A forex journal is a daily written record of a trader’s Forex trading experiences and observations. A forex trading journal is very useful because it helps you track your trading performance overtime.
Keeping a forex journal helps you to track your results in Forex trading so you can measure your performance over a long series of trades and not just on one or two.
A forex journal will serve as a constant reminder of your failures and successes in forex trading so you could critically appraise your performance and remove any emotion you might have attached to any trade.
Are you convinced you should always keep a trading journal yet? No?
Not to worry, these 5 reasons will help change your mind about keeping a forex trading journal and you will realize the abundance of benefits you stand to get as you decide to start keeping one right away.
5 Reasons you should keep a Trading journal
Keeping a forex trading journal will help you record the history of your trading activities.
The journal will summarize all your trades, the state of your trading account and the collective effects of your trades.
This will afford you the opportunity to evaluate your trades, how often you trades, the profit and the loss made, the currency pair that really worked in your favour, the time frame that gave the best profit and so on.
It will supply all the information you need to examine for profitable trade execution.
Recording your forex trading activities in a forex trading journal will help you keep track of your trading performance over a period of time.
A beginner trader may get emotional on the results of each individual trades he place and may conclude that he is either a success or a failure depending on whether he made profit or loss on the trade.
However, a professional trader know that his trading performance is measured over a long series of trade so he uses a forex trading journal to track the results of his trade.
This helps him to measure his success and failures in forex trading and re-strategize when he is making too much losses so he could make more profit.
When you keep a trading journal and you update it regularly, it helps you recognize the errors you have made on previous trades so as not to make the mistakes again.
This will encourage you to review your trading plan to make sure that you are following them correctly.
When you keep a forex journal and review it from time to time, this will keep you accountable. How?
It will motivate you to place valid trades on your account without allowing your emotions to influence you and make you deviate from your trading strategy.
You will know that your irrational decision will be glaring when you update your journal so this will restrain you from allowing your emotions control you when placing trades.
When you start keeping a forex journal, it will help you change your habits to a constructive one.
You will learn to use your trading plan to trades and so your profits and losses will be not determined by chance or luck.
This will help you develop a greater level of confidence.
Confidence will kick out fear and greed that you used to be faced with as your emotions will not be controlling your trades anymore.
Rather, your confidence.
There are more benefits you stand to gain when you keep a forex trading journal.
Getting started might be difficult, sometimes, you will remember to update the journal some other times you might forget.
Don’t worry, you will get used to it. As soon as you get used to it and you stay faithful to it, you will begin to see profitable results in your trading activities.
Has this post been helpful to you? Do you keep a trading journal or would you start keeping one?
Do share your thoughts in the comment section below!