The Importance of Having a Journal of Traders
Basically, there isn't a single person who can be perfect in trading. Experience and flying hours are two things that shape the expertise of forex traders. Stable performance is also accompanied by discipline in recording sports activities. Those who are experts in this field are usually able to take notes and do reviews or regularly what they have done.
Similar to a diary, in the journal all trade activities are recorded. It can be said that this situation is a determining factor as to whether someone will consistently make profits or actually lose. In fact, a trader can improve the performance of the owner of the book, much more effective than other analysis software or seminars.
Then, why is this activity diary necessary? Let's see the following explanation.
3 Reason Importance of Having a Journal of Traders
The following reasons are sure to convince you that making a steady order of forex trading is highly recommended.
Human memory is limited
There are already too many things you have to remember everyday, right? Don't add to that with the tiny details surrounding the recently performed transaction. Not to mention the ups and downs of graphs, numbers, to conditions that make you take action. Keeping track of every detail will make it easier for you to study later on.
Often there is a gap between what we think we will do and what we actually do when we act. Listing will help you to stick to your existing plan or trading item.
The rарі recording will help you to identify the trading methods that were carried out during this time. By doing a review and evaluating all the steps and decisions that have been taken, you can avoid impulsive behavior and make random or random decisions.
3 Important Things to Note
Boris Schlossberg in Investment 1 gave a secret to traders, what really needs to be listed in the journal?
Which Aа you trade and why
Every decision made is based on a reason, it can be technical or fundamental, or both. The signal that appears may prompt you to enter immediately and determine whether to buy or sell.
Take notes and write down the details of the current condition along with your reasons for taking the purchase/sale action. Even if you do it out of boredom or just to pass the time, you can still write about the consequences of the action, here are other supporting facts. This will come in handy when you find a really old man.
Know when to stop and why
There are many traders who do this activity without thinking first, aka impulsive. They often don't know where to go in to make a profit or when the right time has to go out so suddenly the trade turns around.
Detailed statements regarding certain stopping points or limits will help you carry out the following actions. Of course, including various possibilities that can happen. Once he conducts a post-trade analysis, he can learn lessons from those decisions, and be more advanced in the next trade.
According to plan or not?
At best a plan, sometimes not everything often works as it should. In forex trading, there is often a gap between the trading settings on the chart, the conditions controlled by the software and the reality on the ground. Comparing what you are doing with reality helps you recognize your own strengths and weaknesses, so that your performance over the long term will continue to improve.