Why You Need A Forex Trading Journal

You have to maintain a trading diary.
Journaling?!?
Isn’t that only for silly high school girls who write about their silly crushes on silly high school boys?
Heck ya!
Ok, not really… high school girls keep DIARIES.
Forex traders keep trading JOURNALS.
Two entirely different things! Get it right! Geez!
Keeping a trading journal is actually a crucial task in any performance or goal-oriented endeavor. The key is to have some way to measure, track, and stay focused on improving your performance.
World-class athletes do it to keep track of what helps them to be better, faster, and stronger on the field or court.
Scientists do it in the process of finding their next greatest discovery. And forex traders do it to help get them duckets!
What “becoming them duckets” means in simple terms is to become disciplined, consistent, and most importantly, profitable.
A disciplined trader is a profitable trader and keeping a trading journal is the first step to building your discipline.
This might sound simple or easy but we assure you that to actually get started can be very difficult.
In fact, many forex traders give up after a while and rely on the logs that the forex broker provides.
The logs or transaction history from your forex broker gives information that is, at best, marginally useful as it doesn’t tell you a lot of WHY you left and entered the trade.
That information offers NO assistance for your next trade.
Zero. Zilch. Nein. Nada.
A trading diary isn’t just about writing in the prices of your entry and exit and the time you executed the trade.
The trading journal is also about refining your methods and mastering your own psychology.
To be even more specific, it is about your individual emotional psychology before, during, and after the trade.
For example, your trading method says to buy USD/JPY.
But your gut feeling tells you that the trade is NOT going to work…
So you remind yourself, “I don’t think this trade is going to work. BUT I have to follow my trading plan so I’ll take it. ”
During the center of the trade, the cost includes 3 pips from the stop loss and also you ‘re believing, “OMG. This trade isn’t looking so great. I understood it! Why didn’t I listen to myself? I’m such an idiot! I’m about to lose here! I’ll just exit now. ”
Then you choose to close your trade.
A couple of moments after the cost conveys to your initial profit goal. Had you remained in the trade that you would have left a gazillion pips!
This is the reason you need to compose a trading diary. That is a classic instance that likely occurs to too many traders.
We don’t remain in the tradewe don’t trade the strategy and above all, we don’t space our emotions out of our trading!
Should you continue trading like this and also you overlook ‘t maintain a trading diary, the equilibrium on your trading accounts will wind up a large fatZERObefore you understand exactly what you’re doing wrong.