2023-05-19 17:00:09
Trading Journal. Part 2
Planning Tools
The majority of people could believe that a journal will only have the real transaction records. It also contains details about your plans for each trade, though. You can use this option to think things through before making a fast trade.
It will be easier to decide which parameters to enter, how much risk you can accept, how much profit you want to make, and how to handle the trading process itself.
So a notebook is only a technique to make personal ideas conceivable and to record them in concrete numbers. They essentially serve as the framework for the trade planning process.
Mindset Modification
Additionally, keeping a trade record might help you transform your toxic habits into constructive ones. High degree confidence is generated during the transition from the original plans to those that are developing. You won't feel as though the profitable deals were random at this stage.
Additionally, the losses will appear to be premeditated, so you won't actually feel like a loser.
When trading currencies, confidence is key. When you succeed, you'll want to continue winning, but when you lose, fear and panic set in, which is dangerous. As a result, keeping a journal facilitates gathering data for planning and preparation.
Main Concepts of a Journal
It is obvious that keeping a trading journal is crucial while trading forex. It is advised that a diary be set up so that it accomplishes two key concepts. The ideas comprise;
To have a complete record of your efforts, it must have a chronological columnar of all the trades that you are able to total as well as aggregate. You may use an excel spreadsheet that handles the most of the job for you, depending on your skills.
A printout of the identical chart that was utilized to decide the trade, including the entry level, stop-loss level, and potential profit level, should also be sent. Additionally, you must note your trading motivations.
It's important to remember that different trading strategies or systems shouldn't be used together. If you use multiple trading methods, keep each notebook separate.
You need confidence to trade currencies, and you'll have it after you understand what to expect from your system. You're absolutely not looking for losses when you execute deals out of panic or fear.
Making a journal should therefore be your first trading habit because it will be essential to your transactions later on. As you advance, you'll understand that trading journals serve as the best mentors and actual friends.
By using the hashtags #Education and #TradersNote, you can find more education content.
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