Everyone has their style in making a forex trading journal. Thus, you don’t need to be confused when you find that some trading friends have different journals.
According to The Balances, keeping a trading journal while trading actually could be counter-productive and lead to missed trades.
Basically, the guidelines to make a trading journal are simple. Here are some of them:
Two Important Points
There will be variations in journal points, but two important points that you should not skip when starting to write it, that is the Entry and Exit Price (opening and closing trading), and how much Profit (P) and Loss (L) gained.
Simple Format
You should make the format as simple as possible. This point is quite significant, especially for traders who have just started trading journals. It will make you be easier to record trading developments and reread the trading journals they have made.
Additional Notes
You have to make sure that you include a blank section below your trading record, as a column for recording various information. For example, what motivates you to enter into trading at that time, indicators that you use when trading (Stochastics, Moving Average, Relative Strength Index (RSI), etc.), market conditions (price range, trend, breakout), and other information that may be useful when reviewing the success and failure of these trading positions.
Benefits of the Forex Trading Journal
When reviewing your trading journal a year later, you might be surprised how good or bad your career as a trader last year. Apart from being a mirror for contemplation, trading journals also play a role in monitoring your career success as a trader. Thus, the next trading will be more effective.
Make transactions, record your trading activities, and save for future evaluation. Good systems, reliable trading, and emotional well-being are the result of you trading experience. By writing everything in a trading journal, you are practically helping yourself. After all, who can guarantee that your memory can accommodate all the events in life? Trading journals can help remember and correct mistakes or shortcomings in the past.
