The idea of keeping a Forex Trading journal, on the surface, sounds quaint and old-fashioned but it can actually make a difference when getting an investment ready. You can always use a journal to record information on how well your trades are going and what you can do to make them more effective and potentially profitable. This can work well as the logs that a broker or account provider might hold may not give you enough information on how your trades have been working.
You need this journal to keep track of what you are getting out of your investment. You must keep this to not only help you learn from what you have done but to ensure that you trade less with your heart and more with your mind.
Before keeping a Forex trading journal, you must learn Developing a Trading Plan.
Keeping a Forex Trading journal
In particular, a journal can help you keep track of the following:
- The areas you are trading in
- The entry positions you take; this includes the triggers that you take in order to get ahead
- The position size to use
- What areas you feel you are the most confident in
- How your trades have done based on what you did to get in there and how you felt as the trades were moving along
- Your reactions to your outcomes; you must have reactions regardless of how good or bad the outcome was
Forex Trading journal features
You must make sure you have plenty of useful things in your journal. Your trading journal can include the following features:
- List your motivations and interests in trading within your journal. This can help you with figuring out the proper strategy you want to use.
- Think about your market views and how you see it. Let this information flow throughout your journal so you’ll have plenty of information to work with.
- Write down your own personal feelings about the market and see if you have any particular ideas for how you want to invest at this point.
- Write about any missed opportunities or errors you might have made while trading. You can write about what you feel you have done wrong and then discuss what you want to do over time through your own personal monologue.
- Keep tabs on any statistics relating to what you are doing while making trades.
The Bottom Line: Forex Trading journal
Understanding the risks involved in FX trading is vital, but managing those risks are even more important. Keeping a journal can always help you in this task, as writing things down always presumes a higher understanding of the process. From another side, getting a certain Forex bonus can be a good idea as it provides an additional margin, so you can generate higher returns while risking the same amount.
Remember that some Forex trading broker has dedicated account manager for traders who is willing to help the trader to get going with a trading diary. If you are relatively new in this arena, we would like to recommend you to get started with HYCM Broker, they provides a dedicated account manager for traders on a region basis. Learn more on this broker from HYCM Broker Review.
|Chapter 8||Forex Trading with Real Money|
|Lesson 1||Developing a Trading Plan|
|Lesson 2||Opening a live Account|
|Lesson 3||keeping a Forex Trading journal|