Importance of a trading journal in the investment business

A trader’s trading journal is where he or she keeps track of his or her transactions. Every trader keeps a business journal to keep track of their investments. Later, traders consult the journal to learn more about their areas for progress or mistakes. Every professional trader relies on a trading journal as it helps them to manage the trades more strategically. Let’s see some of the key applications of the trading journal.

Applications of journal

A trading log should be kept for a variety of reasons. Here are several examples:

  • To identify flaws.
  • The quantity of money you spend.
  • Recognize Swing high, Swing in the low range.
  • To enhance the approach.
  • To develop intuition regarding market trends.
  • To keep track of business consistency.

Create own trading journal

There are several ways to keep records of the trades in your notebook. We will go through the most popular and effective method of maintaining a business log.

  • Keep the information in excel or a spreadsheet.
  • Using a notepad will be a thing of the past.
  • Try to figure out what kind of stuff you want to keep track of.
  • Determine stop-loss and profit margin after completing a transaction.
  • Analyze the data daily, weekly, or monthly to be more explicit about the following action.
  • Identify the swing-high and swing-low range over a lengthy period of investment (week/month).
  • After trading, make a note of the pip value of the lot.

Don’t memorize your past trades

Your mind is a master manipulator. It will tell you that everything is OK and that if you gaze at the charts long enough, a light bulb will go out. Unfortunately, that day will never come, and it will surely not be before you run out of cash. In this business, delusions of grandeur will kill you, and many individuals appear to suffer from such issues. Go to the site of Saxo and read their free resources. Soon you will realize how psychological stability impacts your trading decision.

You will forget about a bad transaction in a matter of seconds. You will forget about the successful trade execution process within seconds. Traders who do not keep track of their results are comparable to ships without sails. So, please track trading data carefully, section by section. Analyze those data to find out positive or negative aspects.

Journal can make you a better trader

When you start keeping a diary, you slowly learn to identify the mistakes in your trading system. For the first time, you will begin to arrange the learning process and make genuine progress in trade. Eventually, you will enjoy the seamless transformation in your trading career.

If you keep on switching your trading strategy, you will never discover the true potential of a well-balanced trading system. So, stick to a simple strategy and try to learn its ins and outs. This what the pro traders do and it is one of the key reasons for which they are successful.

The pro traders evaluate the market data and find the best potential trade setup. Thus they can execute the trades with confidence. On the contrary, novice traders fail to keep track of their performance and keep on losing money. Try to follow the pro trader’s action as it will keep you ahead in every single step. You will start to see the business more differently. Try to make the right decisions during the trade execution process. Eventually, you will be more efficient in the retail trading industry.

The trading dairy acts as a mentor, reminding you to do the right thing. It will help you to pick only the best trades, employ appropriate risk management, and stick to the trading strategy.

These are just a few of the many benefits that keeping a trading log may have on trade. If you’re serious about improving business, start with the obvious: apply the same strategies that pros use to improve. A notebook and report showing them how they are doing and how they are developing is the most crucial tool for every professional in any area.