It is an important asset in life parts to learn from one’s mistakes. However, when it comes to money especially, it is true. Investing means money and it is important to keep a trading diary, no matter if you are a day trader or based on the long-term trading. Recording what you did when you open and close the trades allows you to address one of the basic human flaws – forget and repeat mistakes. Perhaps if you have all your businesses in your platform’s account history, why it is important to keep a Forex Trading journal?
However, the professional experienced traders know that their trading output is measured in a number of trades, not by just one or two trades. Many aspiring traders are not aware of the results in each trade. Therefore, It is important to have a means of tracking your results so that you can learn how you work through a number of trades. You can see your Forex trading journal as a tangible and constant reminder that your trading results are measured in a number of trades.
You have to act like a professional Forex Trader to become profitable in Forex. Many trading desks worldwide require their traders to maintain certain journals or at least notes on each of trade. These notes will describe what they do, the result and the setup of each trade. Keeping a journal is definitely a major thing that has seen as an amateur separated from a professional market trader. Certainly, the journal itself does not contribute directly to your statement of profit and loss, but it makes a difference over the long term.
The main purpose of maintaining a detailed Forex trading journal is to avoid impulsive actions, which ultimately save your money. That’s why you need to store as many-sorted information as you can, including trade entries and exit data. It is also helpful to track your thoughts and view them all by capturing your trade session on your platform with even screenshots. If you write down your ideas before you enter a trade, you will also think very carefully about your Forex Trading strategy. When you see that you enter the trade, you should not execute the order for any reason except following your strategy.
A successful Forex trader examines not only each trade but also the growth of its trading performance. A Forex trader can quickly advance to a more complex and profitable trading career by means of an effective trading journal. You can quantify, monitor and improve your trading process by using this tool. You can carefully follow up on your capabilities, emotional triggers and other Forex trading aspects you want to measure and optimize.