Exchanging diaries assist merchants with following their exchanges and contemplations for the duration of the day. It’s an incredible instrument on the grounds that an exhaustive diary incorporates subtleties past what you can see on your financier explanation.
It incorporates what economic situations resembled and on the off chance that you were occupied or committed errors. It’s additionally where you can record technique thoughts that may emerge as you exchange for the duration of the day.
All traders should keep a trading journal. On the other hand, not all traders have time to spill their guts on paper all day. Therefore, keeping a trading journal will help you to be counter-productive and lead to missed trades.
Here are 3 ways in keeping your trading journal.
The Easy Way
Let’s use a picture in this part. A picture tells a thousand words. Rather than expounding on economic situations, mistakes, what worked out in a good way, and new methodology thoughts, take a screen capture of the exchanging day with some composed comments on it.
Most traders mark up their charts throughout the day, drawing lines and marking indicator levels. The aim is to determine the trend and find possible reversal/target points. The chart shows the specific economic situations being exchanged. Intraday analysis can show your impression of the market that day. In addition, something words in an exchanging diary never could portray also.
By using a picture, as an illustration, it is an easy way to keep a trading journal. To emphasize this point, you must include certain things to make it more useful when you look back as a review.
Mark Your Charts
These basic guidelines will help you to mark up your charts as a future reference.
Firstly, include an hour or two of price action before you start trading (if it is possible). It provides you a context for what was happening when you started trading. This will help you to better assess time frames to watch while trading.
Secondly, mark your start time with a vertical line or text note on the chart. It lets you know if you started trading early or late, and/or why you may have missed some trade signals earlier in the day.
Thirdly, make a note and write down the times of major economic events you will be stepping aside for. Make text notes throughout the day about tendencies and market conditions you notice. If you make an error, make a note of it. If you miss a trade, make a note of it.
Fourth, keep as many trendlines and drawings on your chart as possible, assuming they don’t distract you. They help to show your future self how you were seeing the market in real-time at any given moment. Mark when you stop trading for the day with a vertical line or text note.
Fifth, type how many trades you made, how many winners, the total profit for winning trades, how many losers, the total loss for losing trades, and the net result. Avoid using dollars, which fluctuate based on position size. Instead, use pips for forex, cents for stocks, or ticks/points for futures.
For example, if trading the ES Futures contract, instead of writing “4 winners, $400; 4 losers, $200 = net +$200,” write “4 winners, 8 points; 4 losers, 4 points = net +4 points.”
Reviewing Your Journal
At the end of every week and month, return and see what you noticed, normal issues, and recognize your qualities. These perceptions can assist you with abusing your qualities and feature the zones you have to take a shot at.
