- Why should you use one?
- How should it look like?
- How do I use it?
- Review your Journal.
Hi, I'd like to take the opportunity to make sure all you traders profitable or "not yet" are paying enough attention on a daily Trading Journal.
I've been trading for a while now, but only after I started a Trading Journal I finally got profitable. Before? I did not know what I was doing.
So let's dive in head first with:
1) Why should you use one?
- You get an extra Level of Security when it comes to whether or not you would like to take the trade or not.
- It definitely helps Improving as you'll be able to Spot your Demons and erase them.
- You get visible results and can track how you improve by the time.
2) How should it look like?
- It can be a Spreadsheet, such as Excel or Google Docs.
- It can also simply be Screenshots before and after your trade with additional information and your trading idea.
- It can simply be anything as long as it has all necessary information about your trade.
3) How do I use it?
- Put all Info around the trade into the journal (Patterns, long/short, Stoploss, Target 1,2,3.) But also what you have in mind when you want to take the trade.
- Take the trade
- Add how the trade turned out, what you did wrong or right. (i.E.: SL hit, Target hit, bad timing, could use higher leverage, too high leverage, forgot to set take profit etc.)
- Mark it Green / Red (Winner/Loser)
- Make sure you stop trading for a while after you do the same mistake 3 times after another. (This helps to make sure you don't overtrade when you are not at your 100%)
- Review your Journal (Depends how often you trade daily/weekly, but it's mandatory to make sure you improve.)
This brings us to the last task in this wiki, which is:
4) Review your Journal
- Take some time to review your journal, what went good/bad. Did you made the same mistakes over and over again?
- What can you do to Improve? Did you read the candles wrong -> improve.
- Did a winner turned into a loser because you got too greedy? -> Work on it, next time take profits, move SL into +%.
- Extra /Bonus: It's fun to watch how you did improve from time to time, you will see that you won't make the same mistakes over and over again, you will not overtrade.
You will finally find your Demons!
Make sure you never stop writing into your Journal, it will sometimes bother you and bore you.
But it will 100% improve your trading skills. So keep it up at all costs!