How To Maintain A Perfect Trading Journal


 Writing regular trade details can give a very positive impact on the trading practices. But sometimes, during quiet or boring times when your guard is down, whether you are a beginner or an expert, mistakes can come in the way.  

To reduce mistakes in your journal throughout the day, it can be helpful to spend a few minutes going through a pre-trade routine or checklist each trading day. You might want to supplement the steps that are shown with a few more, depending on the market that you trade.  

Running through a routine only takes a few minutes, but it could save you money and frustration. Here are some simple steps to make your diary a best stock trading journal with all the important notes-  


Choose your trading method 

There are multiple ways and methods of doing trading. Whether it’s about currency or any instrument you should decide it beforehand, write it down and stick to it, till the end of investment. A trading journal allows you to enter your trades and focus on the analysis part. These journals already contain everything you need and is very easy to use.   


Identify the important information and record it 

After choosing the correct method, you can identify the information you want and can create a create a good strategy. It’s important for every trader to include all the main 6 components of trading, which includes- 

  • Traded instrument,  
  • Date & Time of the trade, 
  • Entry & Exit Prices 
  • Direction of the trade 
  • Position size 
  • Result.  

But you should also record other important information related to particular trade. You can also other necessary notes and create a template for your trading journal.

 

Record the trades 

Keep a full record on your trades. You should immediately write down the transactions as they happen. Going off the record can lead to forgetting the amount altogether, or input things that aren’t accurate.   


Revisit your trading journal 

Don’t forget to analysis your journal again in free time. Not in very depth but reading it so, that there will be no future mistake. Revisiting the journal will help you familiarise with the numbers and easily realize is a pattern is emerging. This will allow you see and spot any changes in your method and prepare you for any future decision.  


Analyse the data 

It’s good to revise your records at the end of the day. You can check whether the trade is generating profit and loss, and also the reasons behind it. Analysing your data means that you can recreate the chart you have made, on the basis of results. The following are a few ways to sort your data- 

  • By date,  
  • By setup,  
  • By asset,  
  • By performance.  

Recreate success factors 

Despite the market's turbulence, patterns may be seen developing with more data in your trading diary. With this knowledge, you can ensure that you will ultimately earn more money while avoiding mistakes that might result in financial loss. 

Repeating the elements that led to your success. Is not a certain approach to make money, but it significantly reduces your chance of loss, especially if you have a lot of data available. This will enable you to increase your trading revenue.

 

Experiment on future trades 

Your crypto trading journal aids in the recreation of variables that may result in money development. You can easily look back and find answers to questions like this if you keep track of all your trades. You can quickly find these solutions with the aid of a good trading journal. 


Final thoughts 

Having a trading journal can make lots of things easier for every trader. From beginners to experts, keep everything in record. Whether you are looking for a stock or crypto trading journal or custom spiral bound journals there are many options online which includes many great features and charts.

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