Journaling isn't just for silly, infatuated high school girls. Believe us. The most hardcore traders out there have journals too!
Why You Need A Forex Trading Journal
There has to be a way for you to track, measure, and analyze your performance. A trade journal will do the trick!
5 Reasons To Keep A Forex Trading Journal
A well-kept detailed trading journal is just as good as having a trading coach to mentor you. Here’s why…
5 Things You Must Have In Your Trading Journal
Your trading performance is determined by how well you analyze the markets so make sure you have all these elements in your trade journal.
Potential Trading Area
Your potential trading area is where you will have a high probability of scoring profits. How exactly can you reach this?
Entry Trigger
Once price is in the potential trading area, you need to figure out when you will pull the trigger.
Position Sizing
How much are you willing to risk per trade? Proper position sizing is crucial in determining whether you’ll live to trade another day.
Trade Management Rules
Figure out what you plan to do for every possible outcome even before you enter the trade. You don’t want to get caught without a game plan.
Trade Retrospective
Here are some questions you can ask yourself as you review how your recent trade went.
Trading Performance Statistics
Make sure you look at these “vital statistics” to find out how you can improve your overall trading performance.
Reviewing Your Trading Journal
Find out what works and keep doing it. Find out what doesn’t work and stop doing it.
Keeping A Trading Journal Is Hard But It’s Worth It
It’s tough to keep a trade journal but your hard work will eventually pay off. In fact, it’s equivalent to an athlete’s practice!
Summary: Keeping a Trade Journal
It takes a lot of discipline to stick to your trading plan and a trade journal can help you do just that! Here’s a reminder of why trade journals work.
